Kansas State University agricultural economists have completed a broad analysis of the impact of grid pricing in the cattle industry, concluding – among other findings – that producers and consumers have benefitted from negotiated pricing agreements.
According to K-State livestock economist Ted Schroeder, grid pricing of fed cattle refers to valuing a lot of cattle based on carcass merit, including premiums or discounts for such traits as quality grade, yield grade, preferred weight, special branded programs and more.
He added that most cattle sold under a grid pricing system use a…
