Feedlot Profitability in Wagyu-influenced Cattle

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

Western Economics Forum, 2024, vol. 22, issue 1

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.

Keywords: Agricultural and Food Policy; Agricultural Finance; Demand and Price Analysis; Livestock Production/Industries; Production Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ags:weecfo:349292

DOI: 10.22004/ag.econ.349292

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