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Ranchers.net

The third most important factor on
cattle price variability is packer-to retail marketing costs. Marketing
cost effects on fed and feeder cattle prices were $2.85/cwt and $4.66/cwt,
respectively. This result emphasizes the importance of costs incurred by
livestock-meat marketing firms. Studies have shown, for example,
that technology adoption by meat packers and cattle finishers increases
cost efficiencies. This has resulted in increasing input demand, hence,
prices paid for fed cattle and feeder cattle by meat packers and feedlots

(Brester and Marsh 2002). The remaining factors demonstrated
smaller effects on cattle prices. The trade effects, which usually receive
much public attention, are relatively small. The market share of net live
cattle and beef imports (carcass weight) averaged about 7 percent of
total U.S. beef supplies (production, stocks, and imports) for the 1980-
2002 period. The trade impact on fed and feeder cattle prices amounted
to about $1.51/cwt and $2.48/cwt, respectively. For 1200 pound fed
steers and 650 pound feeder steers, this was equivalent to about $18 and $16 respectively.
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