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Market Valuation of Preconditioning Feeder Calves

Published online by Cambridge University Press:  28 April 2015

R. Keith Avent ,
Clement E. Ward  and
David L. Lalman
R. Keith Avent
Affiliation:
Department of Agricultural Economics, Oklahoma State University, Stillwater, OK
Clement E. Ward
Affiliation:
Department of Agricultural Economics, Oklahoma State University, Stillwater, OK
David L. Lalman
Affiliation:
Department of Animal Sciences, Oklahoma State University, Stillwater, OK
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Abstract

Preconditioning calf programs, while not new, are becoming more prevalent. They provide benefits to cow-calf producers while adding value for feeder cattle buyers. However, questions remain regarding the economic costs and returns of such programs. A model was estimated with data from three consecutive-day sales, to determine the value that buyers place on preconditioning programs and related feeder cattle traits. Our results indicate that price premiums, although evident, appear to be insufficient by themselves to cover the marginal costs of preconditioning.

Keywords

Animal healthfeeder cattlehedonic modelmarketingpreconditioningpricesvalue-addedQ13Q12Q11C23
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 1 , April 2004 , pp. 173 - 183
Copyright
Copyright © Southern Agricultural Economics Association 2004

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