Date of Graduation

Fall 2020

Degree

Master of Natural and Applied Science in Agriculture

Department

College of Agriculture

Committee Chair

College of Agriculture

Keywords

feeder cattle, cattle auction, value-added, video auction, marketing

Subject Categories

Agriculture

Abstract

Feeder cattle marketing opportunities for producers in Missouri continue to expand. Missouri ranks within the top ten U.S. States in beef cow inventory and is a major feeder calf exporter. Selecting the appropriate marketing opportunity can have a dramatic impact on the income of the cattle producer. Feeder cattle marketing opportunities include value-added program sales, video auctions, as well as the traditional live cattle auction. A long-term study comparing these marketing opportunities in a single livestock market in Missouri has not been conducted. The objective of this study is to analyze cattle characteristics that can influence market price in feeder cattle auctions and quantify any price premiums received for video or value-added over traditional sales. Data for this study was collected between March 2009 and December 2018 at Joplin Regional Stockyards, near Carthage, Missouri. Although cattle were sold through the same livestock auction different marketing strategies including value-added, video, or traditional feeder cattle auction were utilized. Market data from value-added, video, and traditional feeder sales over the study period included 521,586 lots encompassing 3,400,621 head of cattle. Analyzed descriptive factors that could affect the sale price of marketed cattle included sale date, weight class of lot, number of cattle per lot, gender, color/ breed influence, and auction type. Descriptive statistical analysis in Minitab 19 (Minitab Inc., State College, PA) was used to identify trends in the data. Multilinear regression analysis in Minitab 19 (Minitab Inc., State College, PA) was used to analyze the significance of categorical variables on the bid price. Analyzed categorical factors were found to be significant (P < 0.05). Overall value-added and video sales earned mean price premiums of $1 per cwt and $5.36 per cwt respectively in comparison to traditional auctions. This study confirms along with previous research that over time cattle sold through value-added and video sales will consistently sell for higher mean bid prices when compared to cattle at traditional auctions. Producers that take part in value-added management and marketing opportunities are likely to receive a higher price for their cattle than those sold through traditional auctions.

Copyright

© Amanda Trotter

Open Access

Included in

Agriculture Commons

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