Do’s Donts of Grid Pricing AgManager做的amp不agmanager网格定价.info.pptVIP

Livestock Industry Structure James Mintert, Ph.D. Professor Extension Ag. Economist, Livestock Marketing Dept. of Agricultural Economics Kansas State University While concentration was increasing, beef demand was declining Plotting Inflation Adjusted Price vs. Per Capita Consumption Provides A Picture of Beef Demand Declining Demand Has Plagued The Beef Industry For 20 Years Declining Demand Has Plagued The Beef Industry For 20 Years Best News In Beef Industry In The Last Two Decades Demand Showed Signs of Strengthening In 1999, 2000 Again In 2001 Another Look At Demand Compute a demand index The index accounts for changes in beef quantity The index relates current beef prices to prices expected if demand was held constant at some prior year’s level Domestic Retail Beef Demand Increased Last 3 Years “This squall between the packers and the producers of this country ought to have blown over forty years ago, but we still have it on our hands…” Senator John B. Kendrick of Wyoming (1919) Concentration Has Increased Dramatically 1976 145 steer and heifer slaughter plants with capacity greater than 50,000 head Slaughtered a total of 22.4 million head 5 plants slaughtering more than 500,000 head, accounted for 15% of slaughter Concentration Has Increased Dramatically 1998 38 steer and heifer slaughter plants with capacity greater than 50,000 head Slaughtered a total of 26.7 million head 14 plants slaughtering more than 1,000,000 head, accounted for 67% of slaughter Average slaughter in large plants nearly doubled from 1976 to 1998 Concentration Has Increased Dramatically 1976 Steer heifer slaughter of four largest firms equivalent to 25% of total 1998 Steer heifer slaughter of four largest firms equivalent to 80% of total Largest Beef Packers, 2001 Rank Firm # of Plants Cap./Day 1 IBP 10 35,000 2 Excel 6 24,800 3 Conagra 6 20,600 4 Farmland/Nat. 2 10,000 5 Smithfield 5 8,525 Concentration Driven By Cost Conside