Source: USDA/ERS submitted to NRP
PRICE ANALYSIS: MEAT PRICE REPORTING AT RETAIL LEVEL
Sponsoring Institution
Economic Research Service/USDA
Project Status
ACTIVE
Funding Source
USDA INHOUSE
Reporting Frequency
Annual
Accession No.
0406069
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Aug 1, 2000
Project End Date
Sep 30, 2003
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
USDA/ERS
1800 M STREET NW
WASHINGTON,DC 20036
Performing Department
ECONOMIC RESEARCH SERVICE
Non Technical Summary
Retail scanner data is used to produce average monthly prices for selected cuts of meat. Prices can be used to develop farm to retail price spreads.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60339103010100%
Knowledge Area
603 - Market Economics;

Subject Of Investigation
3910 - Cross-commodity research--multiple animal species;

Field Of Science
3010 - Economics;
Goals / Objectives
The Mandatory Livestock Price Reporting Act of 1999 required that ERS produce average monthly retail prices for selected cuts of meat. Previously, we've gotten this data from BLS. The Secretary was authorized to purchase electronic scanner data from retail groceries and a pilot project to develop the process and database was funded. 2002 funds received for development of a nation-wide study. Plans are to go public in Fall 2002 with a database that matches scanner data with similar data provided by BLS.
Project Methods
Cooperator purchases and develops database for selected cuts of meat, descriptions matching URMIS codes provided by BLS. The nature of meat sales in random weight (RW) packages requires data collection procedures that differ from those of other retail food items.RW foods are not typically labeled with the UPC bar code and bar codes can vary store by store. Recoding for conformity is required, making it more costly to process. Neither BLS data nor scanner data cover meat prices and quantities sold for the growing away-from-home food sector.Research will result in a methodology for producing monthly average prices and quantities of meat sold at retail across US regions using electronic scanner data.

Progress 10/01/05 to 09/30/06

Outputs
In 2006, Hahn, Southard, and Perry completed econometric analysis of this data, comparing it to BLS data. They completed several drafts of the report, which will enter Division clearance early in 2007.

Impacts
Our preliminary analysis demonstrates that the delay in release of the scanner data reduces its usefulness for analyzing current-market conditions. This finding could lead to changes either in how the data is structured and delivered or in the elimination of this project. (The Act requiring ERS to purchase this data was renewed in late 2006.)

Publications


    Progress 10/01/04 to 09/30/05

    Outputs
    The project is a nation-wide survey of meat prices at the retail level. Monthly electronic data releases for retail meat prices are available, with releases the business day nearest the 20th of the month beginning with 10/2001 data. Project management is now handled by the Livestock Marketing Information Center (LMIC).

    Impacts
    Scanner prices show lower and more variable prices than BLS retail prices for meat.

    Publications