Fact Sheet Written by:
Clement E. Ward, Oklahoma State University
Ted C. Schroeder, Kansas State University
Dillon M. Feuz, University of Nebraska
And Provided by
Oklahoma State University
Live weight pricing has been a common method of pricing fed cattle. A second method, dressed weight or carcass weight pricing, has increased in usage for higher quality cattle. This latter method is frequently referred to as pricing “in the beef.” The objectives of this fact sheet are to discuss: (1) the general pricing process packers follow in determining bid prices for fed cattle; and (2) the steps followed in both live weight and dressed weight pricing. Both methods preceeded what is referred to now as “grid pricing.” Grid pricing is discussed in separate fact sheets.
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