Abstract: This study investigates the underlying reasons for a producer's choice of marketing channels for stocker cattle in the United States. In addition to traditional public auctions, private sales, video auctions, and Internet auctions have been recently used in the marketing of stocker cattle. Findings show that while the number of marketing options may have increased in recent years, only relatively large producers can actually take advantage of these options. The marketing options for smaller producers are still limited due to their relative size. Also, the number of cattle marketed privately and through video and Internet auctions is found to be positively correlated with herd size. In addition, the New Institutional Economics (NIE) provides insights into how herd size influences the choice of marketing channels.
Key Words: internet sales, livestock, marketing channels, New Institutional Economics, transaction costs
Contact Author:
Charles B. Moss
Dept. of Food and Res. Econ.
McCarty Hall
P.O. Box 110240
University of Florida
Gainesville, FL 32611-0240
Phone: (352) 392-1845, ext. 404
Fax: (352) 392-3646
Abstract: Interest and sales in natural meats continue to grow, with increased offerings in supermarkets and other mainstream marketing channels. Producers interested in direct marketing also consider natural meats an attractive niche market. This study focuses on the market for natural meat, including freezer beef, in Colorado with special attention to whether consumers in different areas of the state differ in their price and product choices. Findings show that about 20% of Front Range Colorado consumers purchase at least some of their meat from specialty shops or natural food stores, while 24% of rural, Western Slope consumers buy at least some meat directly from producers.
Key Words: consumer targeting, freezer beef, natural beef
Contact Author:
Dawn D. Thilmany
Dept. of Ag. & Res. Econ.
B-313 Clark Hall
Colorado State University
Fort Collins, CO 80523
Phone: (970) 491-7220
Fax: (970) 491-2067
Abstract: Food safety problems such as the BSE and dioxin crises focused attention on traceability systems and the certification of such systems. This study analyzes the status and perspectives of traceability systems and certification schemes, and reviews their potential costs and benefits. Results indicate that traceability and certification in meat supply chains comprise a very dynamic area with an increasing impact. Necessary transparency, control of livestock epidemics, increasing due diligence, and a declining role for governments are critical factors. Findings also reveal there is a general focus on the technical characteristics of traceability and certification, and there is a lack of economic considerations. Therefore, specific topics are emphasized for an economic research agenda, such as an analysis of the break-even point for the level of detail of traceability systems, the reconsideration of liability and recall insurance schemes, and regulatory incentives to motivate adoption by free-riders.
Key Words: certification, cost-benefit analysis, livestock production, supply chain, traceability
Contact Author:
Miranda P.M. Meuwissen
Institute for Risk Management in Agriculture
Wageningen University
Hollandseweg 1
6706 KN Wageningen
The Netherlands
Phone: 31-317-483836
Fax: 31-317-485394
Abstract: Stochastic simulation of daily slaughter level was used in conjunction with an estimated packing plant cost curve to assess potential reductions in processing costs due to improved vertical coordination between feedlots and packing plants. Results indicate that processing cost reductions of $1 to $5 per head may be possible. Savings result from ensuring a more stable processing volume that is near the plant's cost-minimizing level of production.
Key Words: cattle, cost curve, meat packing, vertical coordination
Contact Author:
John D. Anderson
Dept. of Ag. Economics
P.O. Box 5187
Mississippi State University
Mississippi State, MS 39762
Phone: (662) 325-1788
Fax: (662) 325-8777
Abstract: Agricultural marketing courses cover a broad spectrum of topics and issues. Undergraduate committees, program coordinators, and marketing-oriented faculty struggle with the appropriate number and content of marketing course offerings. Curricula issues are discussed from the perspectives of three agricultural economics departments. Size, expertise, interests, and pedagogic philosophy assist in determining the number, mix, and content of courses. Solving these problems includes modulization and increasing depth or breadth, to reflect the changing marketing system and student needs. Educators must continually look outward at the changing food system and inward to their marketing curriculum to assess needs and implement changes as they are warranted.
Key Words: agribusiness curricula, agricultural marketing, marketing courses, marketing curricula
Contact Author:
Allen F. Wysocki
Dept. of Food & Res. Econ.
1161 McCarty Hall
P.O. Box 110240
University of Florida
Gainesville, FL 32611-0240
Phone: (352) 392-1826, ext. 403
Fax: (352) 846-0988
Abstract: Agricultural producers and input suppliers must regularly make decisions based on forecasts; however, most publicly available forecasts are for outputs. Research has shown the importance of being a low-cost operator. Thus, focusing on inputs may be beneficial. The objective of this research was to estimate models based on futures markets to forecast diesel fuel prices. Results suggest diesel fuel prices forecasted using the crude oil or heating oil futures market are reasonably accurate, and that this approach is superior to using a historical average. Based on out-of-sample price predictions, producers could profitably use crude oil futures-based models to make diesel fuel purchasing decisions. While the gains from following a model-based decision rule were small, they were positive, suggesting producers would not be worse off following this strategy.
Key Words: crude oil, diesel fuel, forecasts, forward contracting, heating oil
Contact Author:
Kevin C. Dhuyvetter
Dept. of Ag. Economics
307 Waters Hall
Kansas State University
Manhattan, KS 66506
Phone: (785) 532-2527
Fax: (785) 532-6925
Abstract: Synthesized input-output models are widely used by industry and government economists. The IMPLAN program is popular because it provides user access to the base data so that modifications can be made. The Washington survey-based model and IMPLAN for Washington State are compared, and differences in multipliers are traced to differences in final payments leakages. An adjustment technique for IMPLAN is demonstrated. An application is made to a Colorado potential drought impact analysis. More than 51,000 part- and full-time jobs and $1.6 billion of household income are at stake in the Colorado farm and "green industry" sectors.
Key Words: drought, economic impact, green industry, IMPLAN, input-output, irrigated agriculture
Contact Author:
John R. McKean
Agricultural Enterprises, Inc.
P.O. Box 120
Masonville, CO 80541
Phone: (970) 226-1871
Fax: (970) 226-1871
