Macroeconomic shock effects on beef carcass premiums

IF 4.5 3区经济学 Q1 AGRICULTURAL ECONOMICS & POLICY

Agricultural Economics Pub Date : 2024-08-23 DOI:10.1111/agec.12849

Scott W. Fausti, Hernan A. Tejeda, Matthew A. Diersen

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Abstract

An overview of how macroeconomic shocks affect beef quality-grade premiums and discounts in the U.S. fed cattle market is discussed. We review the shock transmission linkages along the beef industry supply chain and determine the economic implications for the finished cattle market. The analysis provides insight into how the fed cattle market responds to macroeconomic shocks. The economic implications of financial risk associated with the behavior of beef carcass quality-grade premiums and discounts associated with the Great Recession and the COVID pandemic are contrasted and assessed.

Data analysis indicates that macroeconomic shocks affect the quality-grade premium pricing mechanism for finished cattle. The origins of the shock (aggregate demand versus aggregate supply) and government fiscal policy intervention determines how premium levels and premium volatility responds to a macroeconomic shock. Thus, beef carcass quality-grade premiums are not only subject to industry idiosyncratic risk, such as swings in the seasonal demand for beef, but are also subject to systematic risk associated with business cycle fluctuations.

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宏观经济冲击对牛肉胴体溢价的影响

本文概述了宏观经济冲击如何影响美国饲料牛市场上牛肉质量等级的溢价和折价。我们回顾了牛肉产业供应链上的冲击传递联系，并确定了对成品牛市场的经济影响。通过分析，我们可以深入了解饲料牛市场是如何应对宏观经济冲击的。数据分析表明，宏观经济冲击会影响成品牛的质量等级溢价定价机制。冲击的来源（总需求与总供给）和政府财政政策干预决定了溢价水平和溢价波动对宏观经济冲击的反应。因此，牛肉胴体质量等级溢价不仅受到行业特异性风险（如牛肉季节性需求波动）的影响，而且还受到与商业周期波动相关的系统性风险的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Agricultural Economics 管理科学-农业经济与政策

CiteScore

7.30

自引率

4.90%

发文量

审稿时长

3 months

期刊介绍： Agricultural Economics aims to disseminate the most important research results and policy analyses in our discipline, from all regions of the world. Topical coverage ranges from consumption and nutrition to land use and the environment, at every scale of analysis from households to markets and the macro-economy. Applicable methodologies include econometric estimation and statistical hypothesis testing, optimization and simulation models, descriptive reviews and policy analyses. We particularly encourage submission of empirical work that can be replicated and tested by others.