Fact Sheet Written by:
Dillon M. Feuz, University of Nebraska
Clement E. Ward, Oklahoma State University
Ted C. Schroeder, Kansas State University
And Provided by
Oklahoma State University
Recently there has been a greater emphasis on improving the quality and consistency of beef. Cattle producers, breed associations, feed suppliers, and beefpackers have all initiated value based pricing methods commonly referred to as grid pricing. While these various grid pricing schemes may differ substantially in the carcass traits they seek to reward or penalize, they all have one common feature: price is established on each individual animal based on carcass merit. This fact sheet introduces the concept of grid pricing and discusses several management and marketing implications if fed cattle are sold on a grid as compared to being sold on a live or dressed weight basis. Two additional fact sheets go into greater detail on: 1) base price considerations and premiums-discounts over time; and 2) risk associated with grid pricing and the value of information.
Click Below for Fact Sheet
