Public Price Reporting, Marketing Channel Selection, and Price Discovery: The Perspective of Cow/Calf Producers in the Dakotas

Cow/calf producers operating in the Dakotas were surveyed on their price discovery strategies, marketing channel preferences, and their perceptions of how regime change in the public price reporting system for fed cattle affected the beef industry in general and the cow/calf industry in particular. Survey results indicate cow/calf producers consider local institutions (auction barns, etc.) to be more reliable for price discovery than regional or national institutions (futures market, USDA public price reports, satellite auctions, etc.). The auction barn marketing channel is the preferred channel for marketing cattle and is considered the most reliable source of market information by producers. Dakota cow/calf producers perceive livestock mandatory price reporting as benefiting the beef industry in general, but consider public price reports to be less reliable than local sources of market information.beef supply chain, cow-calf marketing, marketing channel, price discovery, public price reporting, Livestock Production/Industries,

MANDATORY VERSUS VOLUNTARY PRICE REPORTING: AN EMPIRICAL INVESTIGATION OF THE MARKET TRANSPARENCY CONTROVERSY

The ability of the former voluntary price reporting system to generate market transparency in U.S. livestock markets was called into question by producer groups and academic research prior to the new federal system of mandatory price reporting being implemented. The market transparency issue is investigated by comparing price data collected from the former AMS voluntary price reporting system to mandatory price reporting data for live slaughter steers collected by the State of South Dakota before the advent of the new federal system. The relationship between a set of public price report series and the South Dakota mandatory price series is analyzed using cointegration techniques. The empirical findings indicate a strong long-run and short-run integrated relationship between the mandatory price series and a majority of the selected public price reports. We conclude that in the cash market for live steers in South Dakota, the former voluntary price reporting system did foster market transparency and aided in the price discovery process.Marketing,

Price Transparency in the Voluntary Price Reporting System for Live Cattle: Theory and Empirical Evidence from South Dakota

The ability of the former federal voluntary price reporting system to facilitate market efficiency in the cash markets for U.S. livestock was questioned by producer groups and academic researchers prior to implementation of federal mandatory price reporting regulations. In the cash market for slaughter cattle, concerns raised in the literature centered on the effect of thinning cash markets and strategic price reporting behavior on the robustness of voluntary cash price reports issued by the USDA-Agricultural Marketing Services. A theoretical framework is developed describing the interregional spatial linkages between cash markets and price reporting regimes (mandatory versus voluntary). Data from South Dakota and Nebraska cash markets for live cattle are used to test if the conditions necessary for interregional price transparency did exist prior to implementation of federal price reporting regulations. A set of testable hypotheses, based on the theoretical framework, is developed to test if the concerns raised in the literature about the voluntary price reporting system can be empiracally verified. The empirical results do not support the literature's proposition that the voluntary price reporting system for live cattle failed to provide timely and accurate market price information to the cash market prior to the implementation of the federal mandatory price reporting system in South Dakota and Nebraska. Furthermore, empirical evidence does not support the suppostion that a thinning cash market or strategic price reporting had a significant negative effect on the AMS voluntary price reporting system's accuracy or timely transmission of price information. Therefore, we conclude that the AMS voluntary price reporting system provided price transparency for South Dakota and Nebraska producers selling in the cash market and contributed to the price discovery process.grid pricing, price discovery, price reporting, slaughter cattle

Single-desk marketing: assessing the economic arguments

Single-Desk Marketing: Assessing the Economic Arguments identifies the potential benefits and costs and the strengths and weakness of various arguments in favour of current single-desk arrangements. It does not attempt to quantify the costs and benefits of arrangements in any particular industry.single-desk - marketing boards - deregulation - wheat - cotton - wine - citrus - National Competition Policy

U.S. Fresh Fruit and Vegetable Marketing: Emerging Trade Practices, Trends, and Issues

In the past year, trade practices between fresh produce shippers and food retailers gained national attention. Shippers are concerned that recent retail consolidation has led to market power and the growing incidence of fees and services. Retailers argue that these new trade practices reflect their costs of doing business and the demands of consumers. Trade practices include fees such as volume discounts and slotting fees, as well as services like automatic inventory replenishment, special packaging, and requirements for third-party food safety certification. Trade practices also refer to the overall structure of a transaction-for example, long-term relationships or contracts versus daily sales with no continuing commitment. This study compares trade practices in 1999 with those prevalent in 1994, placing them in the broader context of the evolving shipper/retailer relationship. Most shippers and retailers reported that the incidence and magnitude of fees and services associated with transactions has increased over the last 5 years. Fees paid to retailers are usually around 1-2 percent of sales for most of the commodities we examined, but 1-8 percent for bagged salads. Information on the incidence and magnitude of these new practices is scarce. To augment information that is publicly available, we interviewed a limited number of shippers, retailers, and wholesalers about their firms and trade practices. We received a high level of voluntary cooperation from the interviewed firms.produce, fresh fruit and vegetables, fresh-cut produce, trade practices, fees and services, slotting fees, retail consolidation, produce shipper consolidation, Crop Production/Industries, Marketing,

BENEFITS AND COSTS OF A VOLUNTARY WHEAT BOARD FOR THE PROVINCE OF ALBERTA

Agribusiness,

TRACEABILITY IN THE U.S. FOOD SUPPLY: ECONOMIC THEORY AND INDUSTRY STUDIES

This investigation into the traceability baseline in the United States finds that private sector food firms have developed a substantial capacity to trace. Traceability systems are a tool to help firms manage the flow of inputs and products to improve efficiency, product differentiation, food safety, and product quality. Firms balance the private costs and benefits of traceability to determine the efficient level of traceability. In cases of market failure, where the private sector supply of traceability is not socially optimal, the private sector has developed a number of mechanisms to correct the problem, including contracting, third-party safety/quality audits, and industry-maintained standards. The best-targeted government policies for strengthening firms' incentives to invest in traceability are aimed at ensuring that unsafe of falsely advertised foods are quickly removed from the system, while allowing firms the flexibility to determine the manner. Possible policy tools include timed recall standards, increased penalties for distribution of unsafe foods, and increased foodborne-illness surveillance.traceability, tracking, traceback, tracing, recall, supply-side management, food safety, product differentiation, Food Consumption/Nutrition/Food Safety, Industrial Organization,