Public Price Reporting, Marketing Channel Selection, and Price Discovery: The Perspective of Cow/Calf Producers in the Dakotas

Cow/calf producers operating in the Dakotas were surveyed on their price discovery strategies, marketing channel preferences, and their perceptions of how regime change in the public price reporting system for fed cattle affected the beef industry in general and the cow/calf industry in particular. Survey results indicate cow/calf producers consider local institutions (auction barns, etc.) to be more reliable for price discovery than regional or national institutions (futures market, USDA public price reports, satellite auctions, etc.). The auction barn marketing channel is the preferred channel for marketing cattle and is considered the most reliable source of market information by producers. Dakota cow/calf producers perceive livestock mandatory price reporting as benefiting the beef industry in general, but consider public price reports to be less reliable than local sources of market information.