Market Structure and Conduct of the South Dakota Beef Industry

While the South Dakota livestock producer desires the best price for his product the day it is sold, he may not always receive it. Information about alternative marketing methods and prices being paid at alternative markets is not always available. If available, this information could lead to more efficient marketing. For example, just a one dollar annual increase in market price of livestock would increase the value of commercial slaughter in South Dakota by approximately $8 million/year. An increase like this would not only benefit the livestock producer; but could result in significant impacts on the economic well-being of the entire state. South Dakota cattle producers could possibly change their marketing methods and increase their returns. This study was conducted, in part, to provide background information on the cattle industry which may aid producers in their marketing decisions. This study was designed to look at market channel uses, market information sources, cattle and calf use, and personal characteristics of the South Dakota beef producers. The prior information on marketing practices and channels is outdated, from 1972 or before; and little documented information is available on the personal characteristics of South Dakota cattle producers. Because of this outdated and limited information, there is a need to acquire base period data to facilitate current and future research in these areas. The new and updated information developed in this study, can serve as a basis for more in-depth research on cattle marketing in South Dakota. Trends in cattle marketing can be identified, and this data can be disseminated to researchers and producers in order to help them gain further insight into an industry which is an important part of the South Dakota economy. The general objective addressed in this thesis is to study the structure of and conduct in South Dakota\u27s beef industry at the producer level. Specific objectives are: 1. To examine selected structural characteristics of the South Dakota beef market. 2. To determine the magnitude of flows of cattle through existing South Dakota marketing channels and to determine inflow and outflow of cattle for South Dakota. 3. To identify specific marketing methods and market channels used by South Dakota cattle producers. 4. To examine selected personal characteristics of South Dakota cattle producers