Effect of Slaughter Cattle Marketing Method on the Productions Signals Sent to Beef Producers

Document Type

Article

Journal/Book Title/Conference

Professional Animal Scientist

Volume

9

Publication Date

1993

First Page

53

Last Page

59

Abstract

Data collected from 759 steer calves that were consigned to the South Dakota Retained Ownership Demonstration Program were utilized to examine the effect of slaughter cattle marketing method on production signals sent to beef producers. Marketing systems examined included basing price on live weight (LW), dressed weight (DW), grade and yield (G-Y), or Excel Corporation’s proposed muscle scoring system (MS). Profitability per head averaged $6.64, $23.54, $26.00, and $27.09 for the LW, DW, G-Y, and MS marketing systems, respectively. For the LW pricing system, average daily gain, cost of gain, initial feedlot weight, and days fed accounted for 86.6% of the variation in profitability. For the DW pricing system, average daily gain, dressing percentage, cost of gain, initial feedlot weight, and days fed accounted for 92.86% of the variation in profitability. Average daily gain, dressing percentage, quality grade, cost of gain, days fed, and hot carcass weight accounted for 83.1% of the variation in profit for the G-Y marketing system. Average daily gain, dressing percentage, cost of gain, days fed, carcass fatness, quality grade, and rib eye area explained 75.6% of the variation in profitability for the MS pricing system. Only the MS pricing system penalized the production of carcass fat. Current fed cattle pricing systems used in the industry fail to transfer consumer demand for lean beef to beef producers.

This document is currently not available here.

Share

COinS