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Willingness-to-Pay for Calf Health Programs and Certification Agents

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  • Schumacher, Tucker
  • Schroeder, Ted C.
  • Tonsor, Glynn T.

Abstract

Cattle feeders want feeder cattle that have been weaned and preconditioned with a certified health program. Preconditioned calves perform more efficiently in the feedlot with lower morbidity and mortality. Health program claims, however, range from no claim to being USDA-certified. The value of health protocol certification may vary with certifying entity. Results from a choice experiment and survey of cattle feeders indicate preconditioning programs that include weaning, vaccinating against respiratory and clostridial/blackleg, and treating for parasites are worth on average $7.28/cwt to feedlots. Furthermore, a health program certified by USDA carries an additional value of $2.37/cwt on average.

Suggested Citation

  • Schumacher, Tucker & Schroeder, Ted C. & Tonsor, Glynn T., 2012. "Willingness-to-Pay for Calf Health Programs and Certification Agents," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(2), pages 1-12, May.
    • Handle: RePEc:ags:joaaec:123777
    DOI: 10.22004/ag.econ.123777
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    as
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    1. Owusu-Sekyere, E. & Owusu, V. & Donkor, E. & Jordaan, H., 2018. "Welfare estimates of food safety and quality policy changes in Southern Ghana," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276939, International Association of Agricultural Economists.
    2. McKendree, Melissa G.S. & Tonsor, Glynn T. & Schulz, Lee L., 2021. "Management of Multiple Sources of Risk in Livestock Production," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 53(1), pages 75-93, February.
    3. Blank, Steven C. & Saitone, Tina L. & Sexton, Richard J., 2016. "Calf and Yearling Prices in the Western United States: Spatial, Quality, and Temporal Factors in Satellite Video Auctions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-23.
    4. McKendree, Melissa G.S. & Tonsor, Glynn T. & Schulz, Lee, 2017. "Feedlot operators’ decision making regarding price and animal health risk," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258462, Agricultural and Applied Economics Association.
    5. Williams, Brian R. & DeVuyst, Eric A. & Peel, Derrell S. & Raper, Kellie Curry, 2014. "Reducing Self-Selection Bias in Feeder Cattle Premium Estimates Using Matched Sampling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-15, April.

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    Keywords

    Marketing;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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