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

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  • 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.

Suggested Citation

  • Bullinger, Jared R. & DeVuyst, Eric A. & Bauer, Marc L. & Berg, Paul T. & Larson, Daniel M., 2006. "An Economic Analysis Of Genetic Information: Leptin Genotyping In Fed Cattle," Agribusiness & Applied Economics Report 23599, North Dakota State University, Department of Agribusiness and Applied Economics.
    • Handle: RePEc:ags:nddaae:23599
    DOI: 10.22004/ag.econ.23599
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    Cited by:

    1. Scott W. Fausti & Zhiguang Wang & Bashir A. Qasmi & Matthew A. Diersen, 2014. "Risk and marketing behavior: pricing fed cattle on a grid," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 601-612, September.
    2. 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.
    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(2), pages 1-11.
    4. Lambert, David K., 2008. "The expected utility of genetic information in beef cattle production," Agricultural Systems, Elsevier, vol. 99(1), pages 44-52, December.
    5. Maples, Joshua G. & Lusk, Jayson L. & Peel, Derrell S., 2019. "Technology and evolving supply chains in the beef and pork industries," Food Policy, Elsevier, vol. 83(C), pages 346-354.
    6. Thompson, Nathanael M. & DeVuyst, Eric A. & Brorsen, B. Wade & Lusk, Jayson L., 2016. "Using Genetic Testing to Improve Fed Cattle Marketing Decisions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    7. Thompson, Nathanael M. & DeVuyst, Eric A. & Brorsen, B. Wade & Lusk, Jayson L., 2014. "Value of Genetic Information for Beef Cattle at the Feedlot Stage," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162431, Southern Agricultural Economics Association.
    8. Jay Mitchell & Eric A. DeVuyst & Marc L. Bauer & Daniel L. Larson, 2009. "Cow‐calf profitability and leptin genotyping," Agricultural Economics, International Association of Agricultural Economists, vol. 40(1), pages 113-118, January.
    9. 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.
    10. Thompson, Nathanael M. & Brorsen, B. Wade & DeVuyst, Eric A. & Lusk, Jayson L., 2016. "Random Sampling of Beef Cattle for Genetic Testing: Optimal Sample Size Determination," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229195, Southern Agricultural Economics Association.
    11. 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), pages 1-17.
    12. 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.
    13. Thompson, Nathanael M. & DeVuyst, Eric A. & Brorsen, B. Wade & Lusk, Jayson L., 2014. "Value of Genetic Information for Management and Selection of Feedlot Cattle," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-17, April.

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    Keywords

    Livestock Production/Industries;

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