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: What Happens When Pigs Adapt to High Soybean Meal Diets? - Gustavo Lima

In this special rerun episode of The Swine Nutrition Blackbelt Podcast, Gustavo Lima, PhD candidate in Animal Science at Iowa State University, discusses how grow-finish pigs respond to high soybean meal diets. He explains the initial drop in feed intake, changes in backfat, later adaptation, energy efficiency, amino acid utilization, and the rise in nitrogen excretion at higher inclusion levels. Listen now on all major platforms!

Click here to read the full research article: https://academic.oup.com/jas/article/...

“Once they got adapted to the diet, they can handle higher levels of inclusion of soybean meal.”

Meet the guest: Gustavo Lima / gustavo-lima-a9867127 is a PhD candidate in Animal Science at Iowa State University whose work focuses on swine nutrition, ingredient characterization, energy metabolism, caloric efficiency, and applied data analysis. With more than 15 years of experience in swine production across Latin America, Gustavo also brings expertise in environmental control, performance evaluation, barn ventilation, and grow-finish housing. Learn more from Gustavo Lima on The Swine Nutrition Blackbelt Podcast, available on all major platforms.