In late 2016, Tyson Foods, Inc. announced that it would no longer purchase Holstein cattle at its Joslin, IL harvest facility. This alteration to Tyson’s procurement policy provides a unique opportunity to estimate how producers in the beef supply chain were affected. Results from this study, orginally published in the American Journal of Agricultural Economics, indicate that Tyson’s decision resulted in a 5.5% reduction in live Holstein prices and a 3.5% reduction in dressed prices. Price impacts were more significant for Holstein feeder cattlel; prices for feeder cattle were reduced by 22% immediately after the decision and eventually stabilized 4.8% …

Among the myriad of concerns surrounding the global COVID-19 pandemic is unease about the performance of the U.S. food supply chain. The recent pricing patterns and market dynamics observed in the beef industry have stimulated a lot of concern and discussion about what the future holds. In this blog I discuss the short-term demand impacts and how these changes have influenced beef prices, as well as a variety of factors that are likely to impact the supply side of the beef market. Many researchers and analysts have been considering these topics from a variety of angles. I endeavor here to …

The ever-expanding suite of value-added management and marketing programs available to cattle ranchers creates substantial ranch-level complexity. While all of the programs are likely to add costs, the additional income generated is uncertain. Given that lots of cattle sold typically participate in many programs and management decisions must be made months or even years prior to sale, it is nearly impossible for ranchers to forecast the premium associated with implementing any one program. This second blog in the WVM series focuses on the premiums/discounts for the most common value-added management and marketing programs for lots marketed in 2017. 

Cattlemen today are faced with the challenge of determining which programs will differentiate their cattle on sale day while maximizing the profitability of their operations. With the help of detailed lot-level auction data and modern statistical methods we can gain considerable insights into the value associated with particular programs and management practices. This is the first in a series of blogs designed to provide ranchers more information about the premiums for value-added management, marketing, and vaccination programs in the Western United States.