Price Determinants of Graded Brisket

Abstract

In 2004, beef briskets were the lowest valued primal cut on a carcass, but in recent years, briskets have been ranked as high as the 3rd most valuable cut on a carcass. In this study, we determined factors associated with wholesale graded brisket prices with a novel estimated national graded brisket supply. We used a multivariate price determination model for Prime, Choice, Select, and Ungraded brisket using monthly data from 2004 to 2019. We found that all graded brisket prices increased after Arby's introduced their brisket sandwich nationwide. Additionally, we used Google Trends data for brisket searches and found that consumer interest is also increasing brisket prices over time (P < 0.01). Own- and cross-price flexibilities were estimated using the quantity grade data. Choice briskets were found to have a significant own- price flexibility (P < 0.01) and cross-product flexibility (P < 0.01), which indicates that as the supply of Choice briskets changes, the price of Choice and other graded briskets changes. Cross-quantity flexibilities showed substitutes across brisket quality grades and pork shoulders (P < 0.05). Our results expand the BBQ literature and provide insights that are useful for market participants.