A study on quality-based pricing in the Canadian poultry industry.
详细信息
文摘
This thesis contributes toward the design of a novel pricing scheme that could be employed to compensate Canadian poultry producers according to their performance in specific quality traits. Based on biological data obtained from a set of growth experiments with chicken and data on chicken wholesale prices, a formula-based absolute performance pricing scheme is developed. Producer prices are simulated under the current and novel pricing scheme in the context of the Alberta chicken industry. Impacts of the key elements of the price formula are examined by both deterministic and stochastic methods. The results suggest that the novel pricing scheme is likely to increase the price risk for producers. Producer performance is found to be the most significant factor that affects prices, followed by requirements of processors regarding quality traits (cut-up part yield), and price mark-ups of cut-up parts.