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Returns To Market Timing And Sorting Of Fed Cattle

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  • Koontz, Stephen R.
  • Hoag, Dana L.
  • Walker, Jodine L.
  • Brethour, John R.

Abstract

This research examines the returns to a cattle feeding operation that sorts animals prior to marketing using ultrasound technology. The returns to sorting are between $11 and $25 per head depending on the number of groups the pens in which cattle can be sorted. Sorting faces declining returns. These returns can also be viewed as the costs imposed by institutional constraints that limit co-mingling of cattle. Through sorting, cattle feeding operations are able to reduce meat quality discounts, increase meat quality premiums, increase beef carcass quality characteristics, more efficiently use feed resources, and increase profits.

Suggested Citation

  • Koontz, Stephen R. & Hoag, Dana L. & Walker, Jodine L. & Brethour, John R., 2000. "Returns To Market Timing And Sorting Of Fed Cattle," 2000 Conference, April 17-18 2000, Chicago, Illinois 18930, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:ncrtci:18930
    DOI: 10.22004/ag.econ.18930
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    File URL: https://ageconsearch.umn.edu/record/18930/files/cp00ko01.pdf
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    References listed on IDEAS

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    1. Dillon M. Feuz & Scott W. Fausti & John J. Wagner, 1993. "Analysis of the efficiency of four marketing methods for slaughter cattle," Agribusiness, John Wiley & Sons, Ltd., vol. 9(5), pages 453-463.
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    Cited by:

    1. Jayson L. Lusk & Randall Little & Allen Williams & John Anderson & Blair McKinley, 2003. "Utilizing Ultrasound Technology to Improve Livestock Marketing Decisions," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 203-217.
    2. Ferguson, Meagan & Anderson, John D., 2001. "Value Of Ultrasound-Based Predictions Of Carcass Quality Grade," 2001 Annual meeting, August 5-8, Chicago, IL 20620, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Ibarburu, Maro A. & Lawrence, John D., 2005. "Sorting Cattle with Accumulated Data: What is the Accuracy and Economics," 2005 Conference, April 18-19, 2005, St. Louis, Missouri 19044, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    4. Dos Santos, Alecsandro & Anderson, John D. & Vann, Rhonda C. & Willard, Scott T., 2008. "Live Animal Ultrasound Information as a Decision Tool in Replacement Beef Heifer Programs," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 335-344, April.
    5. Allan M. Walburger & D. H. Crews Jr., 2004. "Improving Market Selection for Fed Beef Cattle: The Value of Real-Time Ultrasound and Relations Data," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(1), pages 1-16, March.
    6. 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, vol. 2011, pages 1-12, June.
    7. Norwood, F. Bailey & Lusk, Jayson L. & Brorsen, B. Wade, 2004. "Model Selection for Discrete Dependent Variables: Better Statistics for Better Steaks," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(3), pages 1-16, December.
    8. 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.
    9. Lusk, Jayson L. & Norwood, F. Bailey & Brorsen, B. Wade, 2004. "Forecasting Limited Dependent Variables: Better Statistics For Better Steaks," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34612, Southern Agricultural Economics Association.
    10. Janzen, Matthew & Coatney, Kalyn T. & Rivera, Daniel & Harri, Ardian & Riley, John Michael & Busby, Darrell & Groves, Matt, "undated". "Fed Cattle Marketing: A Field Experiment," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252844, Southern Agricultural Economics Association.
    11. Wang, Chia-Hsing & Roe, Brian E., 2001. "Profit Maximizing Behavior On the Fed Cattle Grid: The Value of Pre-harvest and Genetic Sorting with Implications for Aggregate Supply," 2001 Annual meeting, August 5-8, Chicago, IL 20611, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Keywords

    Livestock Production/Industries;

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