![]() ![]() Providing essential market information to the differentiated cattle and beef industry requires both enhanced data collection and novel market information assimilation and reporting methods. Associated data collection and market reporting have remained relatively unchanged since LMR enactment more than 20 years ago despite immense change in the marketplace. Market reporting under LMR was designed for an undifferentiated commodity market. To coordinate beef production and align supply chain value signals responsive to evolving customer demands, beef packers and cattle producers forged marketing agreements and value-based pricing systems (Schroeder et al., 2021). Driven by changing demands of domestic and international customers, cattle and beef shifted from functioning as predominantly generic commodities to differentiated and branded products (Schulz et al., 2012). Over the past two decades since LMR enactment, the cattle and beef industry has undergone immense structural change (Parcell et al., 2016). 1 LMR mandated qualifying packers to report price, quantity, and other selected data associated with cattle purchases and beef sales twice daily to USDA. LMR was one of the most substantial market information programs ever enacted in the United States. The Livestock Mandatory Reporting Act of 1999 (LMR) was established to improve reporting of market information about fed cattle, other livestock, and meat products. ![]() Reliable, timely, and accessible market information is essential for market efficiency. We offer suggestions for improved data collection which would make hedonic modeling of transactions prices a more valuable tool to increase usefulness of reported market prices. While the models show promise to provide useful information, they reveal substantial weaknesses associated with current transaction information collected by USDA from packers. Using nearly 6 years of The Livestock Mandatory Reporting Act of 1999 transactions data from USDA Agricultural Marketing Service (USDA AMS), we demonstrate use of hedonic modeling to facilitate price reporting. Large variation present in cattle transaction prices, especially those in the Formula purchases category, on any given day has made traditionally United States Department of Agriculture (USDA)-reported weighted-average prices less meaningful. However, immense structural change in cattle and beef markets has challenged market information over that time. Livestock Mandatory Price reporting, enacted to increase market transparency, has been in place for more than 20 years. ![]()
0 Comments
Leave a Reply. |