Hayenga, Marvin L.; Jiang, Bingrong; Lence, Sergio H.

Agribusiness: An International Journal Vol. 12 no. 6 (November/December 1996): 541-559.

This study examines possible causes for the poor performance that has characterized the forward pricing and hedging practices used by participants in meat processing and merchandising operations. Alternative methods of managing price risk or meat merchandisers are presented and evaluated. The empirical analysis suggests pork and beef slaughter firms and merchandisers should seriously consider using more sophisticated cross hedge models to improve upon the poor performance of some forward contracting and hedging programs currently in use.