Market Valuation of Preconditioning Feeder Calves

R. Keith Avent, Clement E. Ward and David L. Lalman

Journal of Agricultural and Applied Economics, 2004, vol. 36, issue 1, 173-183

Abstract: Preconditioning calf programs, while not new, are becoming more prevalent. They provide benefits to cow-calf producers while adding value for feeder cattle buyers. However, questions remain regarding the economic costs and returns of such programs. A model was estimated with data from three consecutive-day sales, to determine the value that buyers place on preconditioning programs and related feeder cattle traits. Our results indicate that price premiums, although evident, appear to be insufficient by themselves to cover the marginal costs of preconditioning.

Date: 2004
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