Schroeder, Ted C.

December, 2025

Agricultural Economics Research as Cattle and Beef Markets Ascended from Demise

By: Schroeder, Ted C.
The cattle and beef industry suffered through major declines in consumer demand during the 1980s and 1990s. Economists were instrumental in identifying the decline, but traditional times series meat demand models became less useful as heterogeneous consumer preferences evolved. New research methodologies were adopted that guided industry market innovations that resulted in numerous beef product offerings. Going forward, information will be of utmost importance to industry innovation and growth including use of artificial intelligence, real-time surveillance of consumer demand, necessary market information, and risk management. Economists will be integral in designing and assessing the viability of these developments.
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May, 2018

Value of Arrival Metaphylaxis in U.S. Cattle Industry

By: Dennis, Elliott J.; Schroeder, Ted C.; Renter, David G.; Pendell, Dustin L.
Although several studies have estimated economic impacts of antimicrobials for growth promotion, little is known about economic impacts of the common animal health management strategy known as metaphylaxis: administering antimicrobials to groups of animals to prevent disease. This article develops a new framework to map animal disease to producer profitability and determine societal economic impacts surrounding metaphylactic use of antimicrobials in beef cattle production. Results indicate the direct net return value of metaphylaxis to the U.S. fed cattle industry is at least $532 million. Beef producer surplus losses of $1.8 billion would be associated with eliminating metaphylaxis.
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January, 2018

Impacts of Changes in Market Fundamentals and Price Momentum on Hedging Live Cattle

By: Coffey, Brian K.; Tonsor, Glynn T.; Schroeder, Ted C.
Basis prediction errors for live cattle in the five major Mandatory Livestock Price Reporting areas are analyzed to determine how shifts in the live cattle market fundamentals and contemporaneous market conditions, including price momentum, impact ability to hedge. Results reveal that thinness of the negotiated cash market, weight of cattle marketed, and contemporaneous factors statistically impact basis prediction errors. Impacts vary across region. Volatility in cost of gain and delivery costs have greater effects on basis prediction error than do market trends.
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May, 2015

The Impact of Extreme Weather on Cattle Feeding Profits

By: Belasco, Eric J.; Cheng, Yuanshan; Schroeder, Ted C.
While large feedlots commonly hedge corn and fed cattle prices, weather remains the largest uncontrollable component of production risk. This research examines the economic losses to cattle feeding associated with extreme weather. Profit losses are assessed using nonlinear regressions that relate weather outcomes, based on the Comprehensive Climate Index ( Mader, Johnson, and Gaughan , 2010 ), and their impact on production variables. Actuarially fair insurance premium rates are derived for an insurance product designed to mitigate the potential cost of extreme weather. Finally, we discuss additional issues associated with using weather-index insurance products and insuring feedlot cattle against adverse weather.
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April, 2012

The Effect of Value-Added Management on Calf Prices at Superior Livestock Auction Video Markets

By: Zimmerman, Lance C.; Schroeder, Ted C.; Dhuyvetter, Kevin C.; Olson, K.C.; Stokka, Gerald L.; Seeger, Jon T.; Grotelueschen, Dale M.
Value-added management practices for cow-calf producers have become prevalent as feeders have recognized the value of calves raised with certified health and weaning programs. Export markets requiring age and source verification or non-hormone treated cattle and advancement of markets for naturally raised cattle have also presented profit opportunities for cow-calf producers. This study estimates the value of value-added calf production and marketing programs. Weaned steer calves sold with certified health programs realized $7 to $10 per cwt premiums. Age- and sourceverified steers received $1 to $2 per cwt premiums exceeding added costs of about $0.67 per cwt in 2010 despite rapidly expanding supply.
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December, 2011

Economic Impacts of Zilmax(R) Adoption in Cattle Feeding

By: Schroeder, Ted C.; Tonsor, Glynn T.
The Food and Drug Administration recently approved the feeding of Zilmax(R) for cattle in the United States. This study determines direct net return benefits for early-adopting cattle feeders and beef packers. In addition, longer-run producer and consumer surplus measures are estimated as adoption impacts market prices and quantities. After markets adjust, cow-calf producers, cattle feeders, and consumers will gain from adopting the new technology.
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August, 2011

Trade-Related Policy and Canadian-U.S. Fed Cattle Transactions Basis

By: Schulz, Lee L.; Schroeder, Ted C.; Ward, Clement E.
Price differences among fed cattle prices in Canada and the United States (referred to here as fed cattle basis) are important for Canadian cattle feeders, but changing government regulations in Canada and the United States have made basis more variable. This article uses transaction data from Canadian feedlots to quantify fed cattle price differentials in light of new policy initiatives. Using transaction prices, we find that differing slaughter regulations, labeling laws, and policies affecting access to U.S. markets for Canadian cattle affect fed cattle basis.
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December, 2010

Quality Risk and Profitability in Cattle Production: A Multivariate Approach

By: Belasco, Eric J.; Schroeder, Ted C.; Goodwin, Barry K.
This study evaluates quality, production, and price risk within the context of overall profit variability in fed cattle production. The approach used offers a flexible way to estimate a large system of equations with more than three jointly related censored outcomes. Trade-offs between quality and yield grade levels and production measures, such as average daily gain and feeding efficiency, are evaluated. Simulation procedures are used to assess the impact of quality risk on overall profit variability. Results make an important contribution to existing research by explaining why price signals through grid quality grade premiums may not generate intended producer responses.
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April, 2010

U.S. Meat Demand: Household Dynamics and Media Information Impacts

By: Tonsor, Glynn T.; Mintert, James R.; Schroeder, Ted C.
This article uses national, quarterly data to examine U.S. meat demand using the Rotterdam model. We investigate the effect of multiple information indices linking different health concerns with diet, changes in household dynamics, and meat recall information. Medical journal articles linking iron, zinc, and protein with health and diet increase beef and poultry demand, whereas articles dealing with fat, cholesterol, and diet concerns reduce beef demand. Increasing consumption of food away from home enhances pork and poultry demand while reducing beef demand. Combined, these results provide a more complete and current understanding of the impact of multiple information factors faced by U.S. consumers.
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December, 2006

Impact of Mandatory Price Reporting on Fed Cattle Market Integration

By: Pendell, Dustin L.; Schroeder, Ted C.
Geographic fed cattle markets are important because cattle are bulky and perishable, and production and consumption areas are separated. These characteristics make cattle transportation costly and can contribute to segmented markets. This study uses USDA-AMS reported fed cattle market price data from five U.S. regional fed cattle markets to investigate the effects of mandatory price reporting on spatial market integration. Results indicate these markets have been, and remain, highly cointegrated after implementation of mandatory price reporting (MPR). Following introduction of mandatory price reporting, the five regional fed cattle markets have become more fully integrated (i.e., prices tend to move more closely one-for-one following introduction of MPR).
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