Abstract
A hedonic model of feeder and replacement cattle prices in Uruguay was specified to include both permanent agroecological factors (soil productivity and water holding capacity [WHC]) and nonpermanent factors (season, available soil moisture, and pasture conditions) as explanatory variables. Results indicate that predominant agroecological endowments (soil characteristics, water availability, and average seasonal climatic conditions) determine geographic price patterns for cattle produced under extensive production systems. In addition, weather variability and especially extreme events have an important impact on short-run cattle markets. As pasture conditions improve or precipitation increases (e.g., both soil moisture and surface runoff), livestock prices tend to fall, ceteris paribus. A cattle price gap between different regions of Uruguay based on permanent resource endowments (e.g., soil productivity and WHC) and temporary agroecological conditions exists and is illustrated using a series of iso-price maps. The hedonic price model also included various cattle characteristics and marketing conditions as explanatory variables. Grass-fed cattle in Uruguay are not a homogeneous commodity; video auction prices incorporate information about a range of agroecological factors that influence cattle production, marketing patterns, as well as perceived and actual cattle quality and performance.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
