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Identifying Buyer Market Areas and the Impact of Buyer Concentration in Feeder Cattle Markets Using Mapping and Spatial Statistics
Author(s) -
Bailey DeeVon,
Brorsen B. Wade,
Thomsen Michael R.
Publication year - 1995
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243541
Subject(s) - feeder cattle , fed cattle , statistic , procurement , business , summary statistics , agricultural economics , agricultural science , economics , marketing , statistics , zoology , environmental science , mathematics , biology
Abstract The size and shape of market areas for buyers from four major cattle feeding areas are determined by mapping data from the nation's largest video auction. Spatial statistics are also examined to determine their ability to identify market areas for feeder cattle. Mapping shows that procurement areas for feeder cattle buyers are large, irregularly shaped, and overlap substantially. A new statistic was developed to determine primary market areas. Feeder cattle buyers behave as oligopsonists in counties where most buyers are from one feeding area, and prices are higher for feeder cattle in counties where two or more market areas overlap.