The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions

Harun Bulut () and John D. Lawrence

No 18223, Working Papers from Iowa State University, Department of Economics

Abstract: After controlling a variety of feeder cattle characteristics and market and sale conditions, we estimate the price premiums for preconditioning (vaccinations and minimum 30 days weaning) claims with and without third-party certification (TPC) as $6.15/cwt and $3.40/cwt, respectively, in Iowa feeder cattle auctions. These premiums differ statistically (p-value less than 0.0001) and their difference exceeds the additional participation cost of TPC ($1/cwt) on average. This indicates that the third party certification is valued in the market to credibly signal preconditioning investment under asymmetric information.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Pages: 28
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://ageconsearch.umn.edu/record/18223/files/wp060031.pdf (application/pdf)

Related works:
Journal Article: The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions (2007)
Journal Article: The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions (2007)
Working Paper: The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions (2007)
Working Paper: The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:genres:18223

DOI: 10.22004/ag.econ.18223

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