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Market Valuation of Preconditioning Feeder Calves AgEcon
Avent, R. Keith; Ward, Clement E.; Lalman, David L..
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.
Tipo: Journal Article Palavras-chave: Animal health; Feeder cattle; Hedonic model; Marketing; Preconditioning; Prices; Value-added; Q13; Q12; Q11; C23.
Ano: 2004 URL: http://purl.umn.edu/42894
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ASYMMETRIC VALUE OF PRECONDITIONING PROGRAMS FOR FEEDER CATTLE AgEcon
Avent, R. Keith; Ward, Clement E.; Lalman, David L..
Preconditioning is not new but has received considerable attention in recent years. This research addresses two questions. Are buyers of preconditioned feeder calves paying a price premium close to the performance benefits expected from preconditioning? Is there information asymmetry in the value to the buyers compared with the premium they pay? Buyers paid a price premium but less than the expected performance gains. Thus, the hypothesis of asymmetry of information between buyers and sellers could not be confirmed.
Tipo: Conference Paper or Presentation Palavras-chave: Livestock Production/Industries.
Ano: 2002 URL: http://purl.umn.edu/36559
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