Analysis of the efficiency of four marketing methods for slaughter cattle

Four marketing methods for slaughter cattle were analyzed and examined for pricing efficiency. Profits per head were found to be significantly different under the various marketing methods. Greater price discrimination occurred as carcass information increased. Increased price discrimination led to greater dispersion of profit from one marketing method to another. Different marketing methods appeared to send different production signals to producers. The desires of the consumer for less fat and a high-quality product did not appear to be reaching the producers in the form of profit incentives under the most widely used marketing method. © 1993 John Wiley & Sons, Inc.