Thumbnail Image

Age and Source Verified Preconditioned Feeder Cattle: Costs and Value

Donnell, Jeri Denise
The purpose was to: 1. Determine key factors influencing preconditioning cost and returns; 2. Determine the premium for age and source verified, preconditioned calves sold at a public livestock market. Data were provided by the Samuel Roberts Noble Foundation's integrated beef production system (BPS). Hedonic regression models were estimated using FGLS with SAS software. Preconditioning returns depend significantly on number of days preconditioned, average daily gain, and cost of hay, feed, and mineral. Noble Foundation BPS cooperators received a premium for age and source verified, preconditioned feeder cattle when sold at market. Premium levels were dependent on cattle characteristics and market factors. Significant coefficients averaged across four sales conclude that BPS management practices receive a 2.70/cwt premium when compared to all other cattle sold at market. Additionally, premiums are available for cattle sold in truckload sized lots.