Beefing Up Sales: Impacts on Retail and Exports
AAEA members release new research in AJAE
There have been notable changes in the beef industry over the past two decades regarding the changes in retail and export demand. New research found that an increase of 1% in retail beef demand increased fed cattle price by 1.52% and feeder cattle prices by 2.48%.
Melissa McKendree from Michigan State University along with Glynn Tonsor, Ted Schroeder, and Nathan Hendricks from Kansas State University, co-authored the article “Impacts of retail and export demand on United States cattle producers" featured in the American Journal of Agricultural Economics.
McKendree says, “Combining our estimates and those from previous literature on the effect of generic advertising on beef demand, simulation results suggest both feeder and fed cattle producers would benefit from increasing beef checkoff assessments from $1 to $2 and producers would lose if the checkoff program were cancelled. However, feeder cattle producers benefit more from these demand enhancing programs than fed cattle producers.”
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ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes two journals, the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices and the online open access publication series Applied Economics Teaching Resources. To learn more, visit www.aaea.org.
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