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Utilizing Ultrasound Technology to Improve Livestock Marketing Decisions

Author

Listed:
  • Jayson L. Lusk
  • Randall Little
  • Allen Williams
  • John Anderson
  • Blair McKinley

Abstract

This study estimates the value of using ultrasound technology to improve cattle marketing decisions by optimally choosing a particular marketing method. For the particular group of cattle analyzed, results indicate that using ultrasound information to selectively market cattle could have increased revenue by $25.53/head, $4.98/head, or $32.90/head, compared with simply marketing all animals on a live weight, dressed weight, or grid basis, respectively. Even if producers incorporate such information as placement weight, days on feed, and breed into their expectations about final carcass characteristics, our results indicate that ultrasound measures could improve average revenue by $4.16/head.

Suggested Citation

  • Jayson L. Lusk & Randall Little & Allen Williams & John Anderson & Blair McKinley, 2003. "Utilizing Ultrasound Technology to Improve Livestock Marketing Decisions," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 203-217.
    • Handle: RePEc:oup:revage:v:25:y:2003:i:1:p:203-217.
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00054
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    References listed on IDEAS

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    1. Ted C. Schroeder & Jennifer L. Graff, 2000. "Estimated Value of Increased Pricing Accuracy for Fed Cattle," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 22(1), pages 89-101.
    2. Ward, Clement E. & Feuz, Dillon M. & Schroeder, Ted C., 1999. "Formula Pricing and Grid Pricing Fed Cattle: Implications for Price Discovery and Variability," Staff Papers 232528, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    3. Scott W. Fausti & Dillon M. Feuz, 1995. "Production Uncertainty and Factor Price Disparity in the Slaughter Cattle Market: Theory and Evidence," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 533-540.
    4. Koontz, Stephen R. & Hoag, Dana L. & Walker, Jodine L. & Brethour, John R., 2000. "Returns To Market Timing And Sorting Of Fed Cattle," 2000 Conference, April 17-18 2000, Chicago, Illinois 18930, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
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    1. Ferguson, Meagan & Anderson, John D., 2001. "Value Of Ultrasound-Based Predictions Of Carcass Quality Grade," 2001 Annual meeting, August 5-8, Chicago, IL 20620, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Koontz, Stephen R. & Hoag, Dana L. & Brethour, John R. & Walker, Jodine L., 2008. "Production Inefficiency in Fed Cattle Marketing and the Value of Sorting Pens into Alternative Marketing Groups Using Ultrasound Technology," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(3), pages 1-18, December.
    3. Thompson, Nathanael M. & DeVuyst, Eric A. & Brorsen, B. Wade & Lusk, Jayson L., 2016. "Using Genetic Testing to Improve Fed Cattle Marketing Decisions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    4. Dos Santos, Alecsandro & Anderson, John D. & Vann, Rhonda C. & Willard, Scott T., 2008. "Live Animal Ultrasound Information as a Decision Tool in Replacement Beef Heifer Programs," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 335-344, April.
    5. Norwood, F. Bailey & Lusk, Jayson L. & Brorsen, B. Wade, 2004. "Model Selection for Discrete Dependent Variables: Better Statistics for Better Steaks," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(3), pages 1-16, December.
    6. Fausti, Scott W. & Diersen, Matthew A. & Qasmi, Bashir A. & Li, Jing, 2010. "Value-Based Marketing: A Dsicussion of Issues and Trends in the Slaughter Cattle Market," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 27(1-2), pages 1-22.
    7. Ardian Harri & John Michael Riley & John D. Anderson & Keith H. Coble, 2009. "Managing economic risk in value‐based marketing of fed cattle," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 295-306, May.
    8. Lusk, Jayson L. & Norwood, F. Bailey & Brorsen, B. Wade, 2004. "Forecasting Limited Dependent Variables: Better Statistics For Better Steaks," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34612, Southern Agricultural Economics Association.
    9. Janzen, Matthew & Coatney, Kalyn T. & Rivera, Daniel & Harri, Ardian & Riley, John Michael & Busby, Darrell & Groves, Matt, "undated". "Fed Cattle Marketing: A Field Experiment," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252844, Southern Agricultural Economics Association.

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