Using Genetic Testing to Improve Fed Cattle Marketing Decisions
By: Thompson, Nathanael M.; DeVuyst, Eric A.; Brorsen, B. Wade; Lusk, Jayson L.
Thompson, Nathanael M.; DeVuyst, Eric A.; Brorsen, B. Wade; Lusk, Jayson L., Using Genetic Testing to Improve Fed Cattle Marketing Decisions, Journal of Agricultural and Resource Economics, Volume 41, Issue 2, May 2016, Pages 286-306
We estimate the value of using genetic information to make fed cattle marketing decisions. Efficiency gains result from sorting cattle into marketing groups, including more accurate optimal days-on-feed and reduced variability of returns to cattle feeding. The value of using genetic information to selectively market cattle ranged from $1–$13/head depending on how a producer currently markets cattle and the grid structure. Although these values of genetic information were generally higher than those reported in previous research, they were still not enough to offset the current cost of genetic testing (about $40/head).