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Determinants of Cattle Feeding Profit and Cost of Gain Variability

Author

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  • Schroeder, Ted C.
  • Albright, Martin L.
  • Langemeier, Michael R.
  • Mintert, James R.

Abstract

Cattle feeders face risks from fluctuating fed cattle, feeder cattle, and feed prices and cattle performance. Closeout data on 7293 pens of steers are studied to determine the relative impacts of prices and animal performance on cattle feeding profits and cost of gain. Results indicate the importance of managing price risk.

Suggested Citation

  • Schroeder, Ted C. & Albright, Martin L. & Langemeier, Michael R. & Mintert, James R., 1993. "Determinants of Cattle Feeding Profit and Cost of Gain Variability," Staff Papers 118161, Kansas State University, Department of Agricultural Economics.
    • Handle: RePEc:ags:ksaesp:118161
    DOI: 10.22004/ag.econ.118161
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    References listed on IDEAS

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    1. Oscar R. Burt & Robert M. Finley, 1968. "Statistical Analysis of Identities in Random Variables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(3), pages 734-744.
    2. Langemeier, Michael R. & Schroeder, Ted C. & Mintert, James R., 1992. "Determinants Of Cattle Finishing Profitability," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(2), pages 1-7, December.
    3. Nelson, Kenneth E. & Purcell, Wayne D., 1973. "A Comparison Of Liveweight, Carcass And Lean Meat Criteria For The Feedlot Replacement Decision," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 5(2), pages 1-9, December.
    4. Nelson, Kenneth E. & Purcell, Wayne D., 1973. "A Comparison of Liveweight, Carcass and Lean Meat Criteria for the Feedlot Replacement Decisions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 5(2), pages 99-107, December.
    5. E. R. Swanson & V. I. West, 1963. "Statistical Analysis of Feeder Cattle Returns," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(1), pages 146-150.
    6. Bryan E. Melton & Earl O. Heady & Richard L. Willham & M. Peter Hoffman, 1978. "The Impact of Alternative Objectives on Feedlot Rations for Beef Steers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(4), pages 683-688.
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    Citations

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    Cited by:

    1. Mark, Darrell R. & Schroeder, Ted C. & Jones, Rodney D., 2000. "Identifying Economic Risk In Cattle Feeding," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(3), pages 1-14.
    2. Mathews, Kenneth H., Jr. & Arnade, Carlos Anthony & Jones, Keithly G., 2008. "Derived Demand for Cattle Feeding Inputs," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 26(1), pages 1-20.
    3. Jones, Rodney D. & Kastens, Terry L., 1999. "Predicting Feeding Cost Of Gain With More Precision," 1999 Annual meeting, August 8-11, Nashville, TN 21506, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Nicolás Acevedo Vélez, 2007. "The cattle crush strategy: trading opportunities for cattle producers," Revista Ecos de Economía, Universidad EAFIT, October.
    5. Maples, Joshua G. & Harri, Ardian & Riley, John Michael & Tack, Jesse B., 2013. "Marketing Margins and Input Price Uncertainty," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150604, Agricultural and Applied Economics Association.
    6. Anderson, David P. & Daley, Erin & Outlaw, Joe L., 2007. "The Interaction between ethanol and cattle feeding: economics and issues," Biofuels, Food and Feed Tradeoffs Conference, April 12-13, 2007, St, Louis, Missouri 48770, Farm Foundation.
    7. Rahman, Shaikh Mahfuzur, 2006. "Optimal Incentive Structure in Cattle Feeding Contracts Under Alternative Fed Cattle Pricing Methods," Working Papers 28549, University of Maryland, Department of Agricultural and Resource Economics.
    8. Tang, Minfeng & Lewis, Karen E. & Griffith, Andrew P. & Boyer, Christopher N., 2016. "Identifying Factors that Impact Returns to Retained Ownership of Cattle," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229766, Southern Agricultural Economics Association.
    9. Rahman, Shaikh Mahfuzur, 2006. "Optimal Incentive Structure in Cattle Feeding Contracts under Alternative Fed Cattle Pricing Methods," 2006 Annual meeting, July 23-26, Long Beach, CA 21404, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Keywords

    Livestock Production/Industries;

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