Information Transmission in Cattle Markets: A Case Study of the Chariton Valley Beef Alliance
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The declining share of beef in total U.S. meat consumption has motivated industry-wide
efforts to improve average beef quality through more effective coordination
among the various market participants. Increased use of explicit grid pricing mechanisms over the last decade represents initial efforts at improved coordination.
More recent efforts include animal-specific carcass data collection, with subsequent
transmission to feeders and the relevant cow/calf operations, and improved source
verification procedures aimed at (among other things) reducing the overall cost of
medical treatment for live animals. None of these organizational innovations is
costless, and indeed a number of significant barriers must be overcome before
more widespread adoption of such practices takes place. This paper takes a detailed
look at one organization’s attempts to overcome some of these barriers, and provides
a qualitative assessment of this and other potential organizational responses.