The Cost of Negotiated Trade and True Price Discovery

May 07, 2021

By Andrew Griffith

There was a question last week about all the different methods that have been proposed to achieve adequate negotiated trade and true price discovery in the finished cattle market. There has been proposed legislation as well as efforts by NCBA that is a voluntary framework, but NCBA’s voluntary framework could lead to them pushing for a policy framework if packers and cattle feeders do not meet minimum thresholds.

For those interested in the specifics, this information can be found from several sources online. However, it is important for interested parties to understand that any type of mandate or policy will increase costs to the industry directly in two ways.

The first way is that it will increase transaction costs between packers and feedlots as they will be forced to negotiate prices each and every week. This does have a cost. The second cost will be in enforcing the mandate and regulations.

There is always a cost associated with the enforcement of mandates, and it could get expensive.

Source : osu.edu

Video: Fendt Testimonial | Fendt 726 Vario Gen7 | Peter Watson Jones Ltd.

What happens when a farm buys its first Fendt? For Peter Watson Jones Ltd, the Fendt 726 Vario Gen7 has exceeded expectations from day one. For Jack, Farm Manager at Peter Watson Jones Ltd in North Shropshire, UK, the Fendt 726 Vario Gen7 wasn't just another tractor purchase. It was the farm's first experience with the Fendt brand.

Operating across a 1,200-acre arable farm alongside a 250,000-head broiler enterprise, the business has evolved significantly over the last decade, moving to a straight arable system with fewer staff and machines. Since arriving on the farm, the Fendt 726 Vario has established itself as the main drilling and cultivations tractor, earning its place through performance, versatility and efficiency. Whether it's handling large-scale cultivations or working with a new 4.5m strip-till drill, the tractor continues to impress.

Jack highlights its excellent manoeuvrability, operator comfort and ability to deliver strong pulling power at low engine speeds. The result? Outstanding fuel efficiency without compromising performance. Reliability has also been a key factor, with dependable backup from the team at TR Machinery helping to keep the tractor working when it matters most.

?? Watch as Jack shares why the Fendt 726 Vario Gen7, the farm's first Fendt, has made such a strong impression and become an integral part of their operation.