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Estimating the Values of Cattle Characteristics Using an Ordered Probit Model

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  • Gary Crow

Abstract

In this study we evaluate the preferences of cattle producers in Manitoba, Canada, for different cattle characteristics using the conjoint analysis methodology. Preferences are estimated for three different segments of the cattle production system: purebred breeders, commercial cow-calf producers, and cattle feeders. Data were collected for steers and bulls via a mail survey in 1993. Here we provide relative valuation for the different characteristics by segment of the cattle sector. Evidence is provided that different segments of the cattle sector do not value characteristics the same. For example, purebred breeders have higher preferences for reproduction traits, while feedlot operators give higher values to commercial attributes such as heavy slaughter weight and carcass yield. The different valuations of characteristics across segments of the cattle sector suggest that signals regarding preferences may be noisy. As a result, it might be difficult to design some breed improvement programs to be broadly acceptable, if they have differential benefits to the different segments of producers, when using standard profit-oriented selection indices. Copyright 1997, Oxford University Press.

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  • Gary Crow, 1997. "Estimating the Values of Cattle Characteristics Using an Ordered Probit Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 463-476.
    • Handle: RePEc:oup:ajagec:v:79:y:1997:i:2:p:463-476
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    File URL: http://hdl.handle.net/10.2307/1244144
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    1. Aguilar, Francisco X. & Daniel, Marissa “Jo” & Cai, Zhen, 2014. "Family-forest Owners’ Willingness to Harvest Sawlogs and Woody Biomass: The Effect of Price on Social Availability," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0, pages 1-21.
    2. Ndjeunga, Jupiter & Nelson, Carl H., 2000. "Toward Understanding Household Preference For Millet Varieties In The West African Semi-Arid Tropics," 2000 Annual meeting, July 30-August 2, Tampa, FL 21883, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Aguilar, Francisco X. & Vlosky, Richard P., 2007. "Consumer willingness to pay price premiums for environmentally certified wood products in the U.S," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1100-1112, May.
    4. Popp, Michael P. & Faminow, Merle D. & Parsch, Lucas D., 1998. "Adoption Of Backgrounding On Cow-Calf Farms," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20800, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Kaval, Pamela & Loomis, John B., 2005. "The Relationship Between Wildfire and Welfare," 2005 Conference, August 26-27, 2005, Nelson, New Zealand 98517, New Zealand Agricultural and Resource Economics Society.
    6. Harrison, R. Wes & Gillespie, Jeffrey M. & Fields, Deacue, 2005. "Analysis of Cardinal and Ordinal Assumptions in Conjoint Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-15, October.
    7. Harrison, R. Wes & Gillespie, Jeffrey M. & Fields, Deacue, 2001. "Theoretical And Empirical Considerations Of Eliciting Preferences And Model Estimation In Conjoint Analysis," 2001 Annual meeting, August 5-8, Chicago, IL 20680, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Blank, Steven C. & Saitone, Tina & Sexton, Richard & Kalotia, Kabir & Forero, Larry & Nader, Glenn, 2011. "Location and distance effects on western calf and yearling prices," 2011 Annual Meeting, June 29-July 1, 2011, Banff, Alberta,Canada 291744, Western Agricultural Economics Association.
    9. Leal, Victor E. Funes & Hutchins, Jared P., 2022. "The Price of Fame: The Effect of Award-Winning Pedigrees on the Price of Livestock Genetics," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322268, Agricultural and Applied Economics Association.
    10. Horna, J. Daniela & Smale, Melinda & von Oppen, Matthias, 2005. "Private Participation In Agricultural Extension In Nigeria And Benin: Determining The Willingness To Pay For Information," 2005 Annual meeting, July 24-27, Providence, RI 19401, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Tano, Kouadio & Kamuanga, Mulumba & Faminow, Merle D. & Swallow, Brent, 2003. "Using conjoint analysis to estimate farmer's preferences for cattle traits in West Africa," Ecological Economics, Elsevier, vol. 45(3), pages 393-407, July.
    12. Aguilar, Francisco X., 2009. "Investment preferences for wood-based energy initiatives in the US," Energy Policy, Elsevier, vol. 37(6), pages 2292-2299, June.
    13. Popp, Michael P. & Faminow, Merle D. & Parsch, Lucas D., 1999. "Factors Affecting The Adoption Of Value-Added Production On Cow-Calf Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(1), pages 1-12, April.
    14. Horna, J. Daniela & Smale, Melinda & Oppen, Matthias Von, 2007. "Farmer willingness to pay for seed-related information: rice varieties in Nigeria and Benin," Environment and Development Economics, Cambridge University Press, vol. 12(6), pages 799-825, December.
    15. Evelyne Gbénou-Sissinto & Ygué P. Adegbola & Gauthier Biaou & Roch C. Zossou, 2018. "Farmers’ Willingness to Pay for New Storage Technologies for Maize in Northern and Central Benin," Sustainability, MDPI, vol. 10(8), pages 1-21, August.
    16. Harrison, R. Wes & Sambidi, Pramod R., 2004. "A Conjoint Analysis of the U.S. Broiler Complex Location Decision," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(3), pages 1-17, December.
    17. Harrison, R. Wes & Mclennon, Everald, 2004. "Analysis of Consumer Preferences for Biotech Labeling Formats," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-13, April.
    18. Holt, John D. & Fields, Deacue & Prevatt, J. Walter & Kriese-Anderson, Lisa, 2004. "Producer Valuation Of Herd Bull Characteristics," 2004 Annual meeting, August 1-4, Denver, CO 20214, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Kamuanga, Mulumba & d'Iteren, G & Tano, K & Jabbar, Mohammad A. & Swallow, B M & PoKou, K, 2001. "Farmers’ preferences of cattle breeds, their market values and prospects for improvement in West Africa – a summary review," Research Reports 182892, International Livestock Research Institute.
    20. L. Zaibet & S. Traore & A. Ayantunde & K. Marshall & N. Johnson & M. Siegmund-Schultze, 2011. "Livelihood strategies in endemic livestock production systems in sub-humid zone of West Africa: trends, trade-offs and implications," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 13(1), pages 87-105, February.
    21. Pamela Kaval, 2006. "The Relationship between Well-Being and Wildfire," Working Papers in Economics 06/14, University of Waikato.

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