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Determining the Impacts of Cattle Origin and Ownership Characteristics on Feedlot Performance

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  • Stehle, Anna M.
  • Peel, Derrell

Abstract

The U.S. beef cattle industry is segmented into two broad categories, feeder cattle production and feedlot finishing. During the transition from feeder production to the feedlot, background information concerning the quality and potential of individual animals is often lost. The lack of background information limits the potential to optimize feedlot management strategies. Using data from a large commercial feedlot in the U.S. Southern Plains region, this research analyzes the impacts of background characteristics on feedlot performance. The background characteristics include origin and ownership status. Results from Mixed Linear Models and an Ordered Logit Model indicate differences in feedlot performance and economic returns between customer cattle and cattle owned by the feedlot. Origin also has a notable impact on the health and feeding efficiency of cattle on feed. The background characteristics and pen-level observations allow the data to be categorized into distinct groups. A descriptive analysis of placement weight categories confirms general expectations for feedlot performance and differences based on background qualities. The pen-level data also highlights the range of variation for feedlot performance variables.

Suggested Citation

  • Stehle, Anna M. & Peel, Derrell, 2017. "Determining the Impacts of Cattle Origin and Ownership Characteristics on Feedlot Performance," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252705, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea17:252705
    DOI: 10.22004/ag.econ.252705
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    1. Langemeier, Michael R. & Schroeder, Ted C. & Mintert, James R., 1992. "Determinants Of Cattle Finishing Profitability," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(2), pages 1-7, December.
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    3. Ward, Clement E. & Lalman, David L., 2003. "Price Premiums From A Certified Feeder Calf Preconditioning Program," 2003 Conference, April 21-22, 2003, St. Louis, Missouri 18973, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    4. Jill E. Hobbs, 2004. "Information asymmetry and the role of traceability systems," Agribusiness, John Wiley & Sons, Ltd., vol. 20(4), pages 397-415.
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    Keywords

    Livestock Production/Industries; Marketing;

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