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An Economic Analysis Of Genetic Information: Leptin Genotyping In Fed Cattle

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Author Info

  • Bullinger, Jared R.
  • DeVuyst, Eric A.
  • Bauer, Marc L.
  • Berg, Paul T.
  • Larson, Daniel M.

Abstract

The use of genetic knowledge is widespread in crop production but is just recently being utilized in livestock production. This study investigates the economic value to feedlots of a polymorphism in the bovine leptin gene. Previous studies indicate that this polymorphism is associated with fat deposition. Since fed cattle are often priced on a grid that considers both yield and quality grades, fat deposition is an important factor in the value and profitability of fed cattle. Using data from 590 crossbred steers and heifers, we estimate growth curves for relevant biological traits, both with and without genotypic information. Using the resulting functions, we then simulate carcass traits to various days-on-feed and compute the associated profit under three price grids. Maximum profits are determined in an unconstrained profit maximization model and in a model that constrains cattle to be marketed in 45-head "potloads." Results indicate that leptin genotypic knowledge has little impact on optimal days-on-feed but may play a role in valuing feeder cattle. The differences in value of cattle varied by as much as $37 per head between genotypes.

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File URL: http://purl.umn.edu/23599
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Bibliographic Info

Paper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agribusiness & Applied Economics Report with number 23599.

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Date of creation: 2006
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Handle: RePEc:ags:nddaae:23599

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Related research

Keywords: genetics; leptin genotype; beef cattle; value of information; Livestock Production/Industries;

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Cited by:
  1. Lambert, David K., 2008. "The expected utility of genetic information in beef cattle production," Agricultural Systems, Elsevier, vol. 99(1), pages 44-52, December.
  2. Belasco, Eric J., 2008. "The Role of Price Risk Management in Mitigating Fed Cattle Profit Exposure," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), December.
  3. DeVuyst, Eric A. & Lambert, David K. & Bauer, Marc L., 2007. "Genotyping: What Applied Economists Should Know," Western Economics Forum, Western Agricultural Economics Association, vol. 6(02).
  4. Parcell, Joseph L. & Franken, Jason R.V. & Schafer, Daniel & Patterson, David J. & John, Mike & Kerley, Monty S. & Haden, Kent, 2011. "Coordinating Sire Genetics in a Synchronized AI Program," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers.
  5. repec:ags:jlaare:168264 is not listed on IDEAS
  6. Parcell, Joseph L. & Schaefer, Daniel & Patterson, David J. & John, Mike & Kerley, Monty S. & Haden, Kent, 2008. "Assessing the Value of Coordinated Sire Genetics in a Synchronized AI Program," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37618, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.

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