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An evaluation of hog carcass merit pricing systems
Author(s) -
Schroeder Ted C.
Publication year - 1993
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199307)9:4<339::aid-agr2720090405>3.0.co;2-5
Subject(s) - value (mathematics) , hedonic pricing , economics , econometrics , business , microeconomics , statistics , mathematics
Live hog prices must reflect end‐use pork value to efficiently convey market information from consumers to producers. Precise end‐use value is excessively costly to trace for each carcass given current technology. As such, pricing structures must be based upon carcass merit information that is correlated with end‐use value. In this study, a model to value hog carcasses based upon carcass characteristics is estimated. The model is used to evaluate the pricing structures of five hog slaughterers. The results indicate that although some packers pricing schedules are highly consistent with estimated end‐use values others are less consistent. © 1993 John Wiley & Sons, Inc.