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- W2106316526 abstract "Yield GradesQuality Grade 1 2 3 4 5Prime +7 +6 +5 -10 -15CAB +4 +3 +2Choice +2 +1 120 -10 -15Select -13 -14 -15 -25 -30Standard -25 -25 -25 -35 -40Out Cattle -25Light Carcass 950 lb -20Figure 1. An Example of a Pricing Grid for Fed Cattle.Formula PriceA formula pricing agreement may appear the same as the grid displayed in Figure1. However, there is a fundamental difference in how the base price is determined. Aswith the grid, the base price will be tied to the cash market, but it is also determined by thetype of cattle being killed at the packing plant. For example, two packing plants may offeridentical premiums and discounts associated with quality and yield grades, but their baseprice will be different dependant upon the percentage of cattle being slaughtered at theplant that fit into each grade category. The base price may also differ dependant upon theaverage dressing percentage at the plant.An example of how these formulas work is displayed in Figure 2. There are twoplants that have the same premiums and discounts associated with quality grades and bothplants are using the same cash price for a reference. However, the percentage of cattle in" @default.
- W2106316526 created "2016-06-24" @default.
- W2106316526 creator A5059928963 @default.
- W2106316526 date "1997-01-01" @default.
- W2106316526 modified "2023-09-26" @default.
- W2106316526 title "Live, In-the-Beef, or Formula: Is There a Best Method for Selling Fed Cattle?" @default.
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