Identifying Buyer Market Areas and the Impact of Buyer Concentration in Feeder Cattle Markets Using Mapping and Spatial Statistics
1995
Bailey, DeeVon | Brorsen, B Wade | Thomsen, Michael R.
The size and shape of market areas for buyers from four major cattle feeding areas are determined by mapping data from the nation's largest video auction. Spatial statistics are also examined to determine their ability to identify market areas for feeder cattle. Mapping shows that procurement areas for feeder cattle buyers are large, irregularly shaped, and overlap substantially. A new statistic was developed to determine primary market areas. Feeder cattle buyers behave as oligopsonists in counties where most buyers are from one feeding area, and prices are higher for feeder cattle in counties where two or more market areas overlap.
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