The Economic Impact of Beta Agonist Removal from Beef Production
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Beta agonists are feed additives that increase the efficiency of feed conversion in feedlot cattle. Their use has recently generated significant discussion. We have developed an equilibrium displacement model that examines the impact of their removal from the market on production and prices of beef at the farm, wholesale, and retail levels. After their removal beef prices are increased in the retail, wholesale, feedlot, and cow/calf segments. Quantity of beef available decreases initially and in the long-term in the retail, wholesale, and feedlot segments, but increases in the long-term. Quantity produced increases in the short and long term for the cow/calf segment.