| Abstract: | Smithfield beef prices are regressed on quality measurements made on beef selling in Smithfield market. Optimal weight, conformation and fat levels are derived and the revenue foregone by not obtaining these optima is estimated for Scotch, English, Republic of Ireland and Northern Irish beef. For other quality characteristics Scotch beef is taken as the norm and the revenue foregone by not producing to Scotch standards is estimated for English, Republic of Ireland and Northern Irish beef. Differences in quality levels are found to explain only a relatively small proportion of the price gap which exists between Scotch beef and beef from the three other areas. |
