Live Cattle Pricing Demonstration

The rationale behing the "live Cattle Pricing Demonstration" was to allow participants to evaluate the following three pricing demonstrations to determine the best system to market the 15 head of example steers. Prices were bgased on prices on June 10, 1997 for each system. System 1 utilized a flat bid price in the beef for the cattle of $100/cwt. System 2 offered premiums for cattle that were "high cutability." System 3 prices were based on premiums for "high quality" carcasses.

System 1

$1.00 flat bid in the beef.

System 2

  <1 1.0-1.4 1.5-1.9 2.0-2.4 2.5-2.9 3.0-3.4 3.5-3.9 4.0+
Prime 70 70 70 70 70 70 70 70
Choice 122 115 108 104 100 93 86 70
Select 122 115 108 104 100 93 86 70
Standard 110 103 96 92 88 81 74 58

<600 lb = -$5.00 Dark Cutter = -$35.00
851 - 900 lb = -$5.00 Bullock = -$35.00
901 - 950 lb = -$15.00  

System 3

  YG1 YG2 YG3 YG4 YG5
Prime 115 113 110 100 95
CAB 112 110 107 97 92
Choice 109 107 104 94 89
Select 97 97 97 87 82
Standard 77 77 77 77 77

>950 lb = -$15.00 Dark Cutters = -$30.00
<550 lb = -$10.00 Bullocks = -$30.00

 

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Last Modified: November 11, 1997