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Feedlot Profitability in Wagyu-influenced Cattle

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  • Baxter, Grace A.
  • Raper, Kellie Curry
  • Peel, Derrell S.
  • DeVuyst, Eric A.

Abstract

Feedlot profitability of Wagyu-influenced cattle is examined using data from a privately owned feedlot in the Midwest. The data contain more than 15,000 head of cattle, including full blood Angus and Wagyu-Angus crossbred cattle of 12.5%, 25% and 50% Wagyu heritage. Results indicate that steers with 25% Wagyu had higher net real returns at the mean than all other genetic combinations in the study. Heifer results are more mixed. Mean net returns for 12.5% Wagyu heifers were statistically different from full blood Angus heifers, but other pairwise comparisons were not. Cattle with 25% Wagyu exhibited the most consistent mean net returns across feedlot start weights. Angus cattle had consistently lower net returns across feedlot start weights than Wagyu-influenced cattle. This increased profitability is arguably due in part to increasing the proportion of cattle that grade USDA Prime via Wagyu genetics while also lessening Wagyu’s potentially negative physical performance impacts with Angus genetics.

Suggested Citation

  • Baxter, Grace A. & Raper, Kellie Curry & Peel, Derrell S. & DeVuyst, Eric A., 2024. "Feedlot Profitability in Wagyu-influenced Cattle," Western Economics Forum, Western Agricultural Economics Association, vol. 22(1), September.
    • Handle: RePEc:ags:weecfo:349292
    DOI: 10.22004/ag.econ.349292
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    References listed on IDEAS

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    1. Pelletier, Nathan & Pirog, Rich & Rasmussen, Rebecca, 2010. "Comparative life cycle environmental impacts of three beef production strategies in the Upper Midwestern United States," Agricultural Systems, Elsevier, vol. 103(6), pages 380-389, July.
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