The basic objective of this thesis was to estimate the
economic effects of yield grade standards for carcass beef
on the various market sectors of the Canadian beef industry.
The adoption of the standards was expected to enhance
consumer demand, improve efficiency within the processing
and marketing services sectors, and improve resource
allocation and revenues of livestock producers.
A conceptual model showing the interrelationships among
market sectors was developed and formulated into a system of
equations for econometric estimation. The model contained
variables relating to the supply and demand of market
participants affected by the change in grading standards.
Measurement of these variables was based on published
quarterly data, including four years of yield grading, over
the 1961-76 period.
The statistical results showed a significant economic
variables relating to the supply and demand of market
participants affected by the change in grading standards.
Measurement of these variables was based on published
quarterly data, including four years of yield grading, over
the 1961-76 period. Binary variables were incorporated in
the model to identify any structural change in the
relationships coincident with the grade change.
Problems in estimation arose due to the simultaneous
nature of the model, and intercorrelation problems involving
predicted prices for adjacent market levels in certain
structural equations. Two alternative specifications of the
processing and marketing services relationships were
formulated to address this problem. First, variables
relating to demand at the adjacent market level were
substituted for the corresponding price. The second method
involved the ratio of adjacent market level prices. Both
specifications resolved the problem,, but in the substitution
case intercorrelation was transferred to other variables.
Estimates of the parameters of the various equations were
obtained by using the two stage least squares regression
procedure.
The statistical results showed a significant economic
impact of yield grades, as measured by the slope and
intercept binary variables, in the estimated retailer demand
and producer supply equations. But, these results cannot be
considered conclusive. A lack of information concerning
impact of yield grades, as measured by slope and intercept
binary variables, in the estimated retailer demand and
producer supply equations. But, these results cannot be
considered conclusive. A lack of information concerning
historical costs in the processing and marketing sectors
necessitated the use of proxy variables which may not have
accurately captured the full impact of the grade change. A
further problem was that potential yield grade adjustments
in carcass weights were dominated by the effects of rapidly
rising feed grain prices throughout the grade change period. / Graduation date: 1982
| Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/25952 |
| Date | 30 April 1982 |
| Creators | Dawson, Oliver Glenn |
| Contributors | Johnston, Richard S. |
| Source Sets | Oregon State University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
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