AGEC 333 - Ch. 12-15 - Exam 3 Questions and Answers Graded A+
False - Answers T/F: Any legal procurement contract can be traded in futures markets like the
Chicago Board of Trade
True - Answers T/F: The broiler industry evolved from open markets to procurement contracts
to almost totally production contracts
True - Answers T/F: Industry surveys suggest that over 85% of hogs and 70% of cattle are
procured by processors through non-cash transactions
False - Answers T/F: A grower retains no production risks when he signs a production contract
Use procurement contracts to obtain most of the hogs they slaughter - Answers Meat packers:
A. Use procurement contracts to obtain most of the hogs they slaughter
B. Produce about 90% of the hogs they slaughter
C. Buy most of the hogs they slaughter in the cash market
D. None of the above
They are usually related inversely to the amount of competition in processing - Answers Which
of the following is true about processors' margins?
A. They are not as important to a processor as the level of prices paid
B. They are much wider for a small crop than for a large one
C. They are usually related inversely to the amount of competition in processing
D. All of the above
Generally benefits from full-capacity utilization of his plant - Answers The typical processor:
A. Generally benefits from full-capacity utilization of his plant
B. Relies almost solely on production contracts
C. Is a farmer-owned cooperative
D. Is a monopoly
Are likely successful for any processor who can get both high volume and high margins -
Answers Processor procurement programs:
A. Require five different systems for each and every commodity
, B. Rely almost entirely on procurement contracts
C. Are evolving from labor contracts to the cash market for most commodities
D. Are likely successful for any processor who can get both high volume and high margins
E. None of the above
Cattle and hogs are usually bought on "grade and yield" - Answers Is it true that:
A. Most soybeans are procured by crushers through production contracts
B. Cattle and hogs are usually bought on "grade and yield"
C. Market intelligence in agriculture is provided entirely by public sources
D. The U.S. government owns all grains in storage
True - Answers T/F: For a processor, the decision to vertically integrate downstream constitutes
a basic "make or buy" decision.
True - Answers T/F: Providing convenience to the consumer of the food product is often more
important to the processor than the nutrition of the food
False - Answers T/F: Packaging of food by the processor is entirely concerned with preservation
and safety
False - Answers Success in product differentiation is purely a matter of skill and advertising
budgets - any product in the grocery store can be as easily differentiated as any other
True - Answers T/F: The frequent introduction of new products is a basic marketing strategy of
most large food processors and such a strategy is consistent with the oligopolistic structure of
much of that industry
Only a and c - Answers Which of the below statements are true?
A. Goals of product advertising vary with phases of the product life cycle
B. Sales promotion is another name for advertising
C. A processor's ability to set prices may vary with phases of the product life cycle
D. All of the above
E. Only a and c
Product, promotion, price, and place - Answers The four Ps of the marketing mix are:
A. Production, promotion, price, and package
False - Answers T/F: Any legal procurement contract can be traded in futures markets like the
Chicago Board of Trade
True - Answers T/F: The broiler industry evolved from open markets to procurement contracts
to almost totally production contracts
True - Answers T/F: Industry surveys suggest that over 85% of hogs and 70% of cattle are
procured by processors through non-cash transactions
False - Answers T/F: A grower retains no production risks when he signs a production contract
Use procurement contracts to obtain most of the hogs they slaughter - Answers Meat packers:
A. Use procurement contracts to obtain most of the hogs they slaughter
B. Produce about 90% of the hogs they slaughter
C. Buy most of the hogs they slaughter in the cash market
D. None of the above
They are usually related inversely to the amount of competition in processing - Answers Which
of the following is true about processors' margins?
A. They are not as important to a processor as the level of prices paid
B. They are much wider for a small crop than for a large one
C. They are usually related inversely to the amount of competition in processing
D. All of the above
Generally benefits from full-capacity utilization of his plant - Answers The typical processor:
A. Generally benefits from full-capacity utilization of his plant
B. Relies almost solely on production contracts
C. Is a farmer-owned cooperative
D. Is a monopoly
Are likely successful for any processor who can get both high volume and high margins -
Answers Processor procurement programs:
A. Require five different systems for each and every commodity
, B. Rely almost entirely on procurement contracts
C. Are evolving from labor contracts to the cash market for most commodities
D. Are likely successful for any processor who can get both high volume and high margins
E. None of the above
Cattle and hogs are usually bought on "grade and yield" - Answers Is it true that:
A. Most soybeans are procured by crushers through production contracts
B. Cattle and hogs are usually bought on "grade and yield"
C. Market intelligence in agriculture is provided entirely by public sources
D. The U.S. government owns all grains in storage
True - Answers T/F: For a processor, the decision to vertically integrate downstream constitutes
a basic "make or buy" decision.
True - Answers T/F: Providing convenience to the consumer of the food product is often more
important to the processor than the nutrition of the food
False - Answers T/F: Packaging of food by the processor is entirely concerned with preservation
and safety
False - Answers Success in product differentiation is purely a matter of skill and advertising
budgets - any product in the grocery store can be as easily differentiated as any other
True - Answers T/F: The frequent introduction of new products is a basic marketing strategy of
most large food processors and such a strategy is consistent with the oligopolistic structure of
much of that industry
Only a and c - Answers Which of the below statements are true?
A. Goals of product advertising vary with phases of the product life cycle
B. Sales promotion is another name for advertising
C. A processor's ability to set prices may vary with phases of the product life cycle
D. All of the above
E. Only a and c
Product, promotion, price, and place - Answers The four Ps of the marketing mix are:
A. Production, promotion, price, and package
