MILWAUKEE – 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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