Price Determinants of Bred Cows in Oklahoma Auctions

Bred cows are an input into beef production. Often producers are directly marketing bred cows as beef replacement animals. Alternatively, some producers are capitalizing on alternative marketing opportunities and are selling cull cows as bred. However, in auctions across the state of Oklahoma, quality and value variation in the bred cows is apparent. Product differentiation and price variability is frequently modeled using the hedonic approach. Hedonic models have previously been applied to various classes of cattle including cull cows and cow-calf pairs. However, no previous research has determined the value of bred cow characteristics. The objective of this paper is to determine the market value of various bred cow traits, including age, weight, months bred, cow quality, and hide color. The model accounts for seasonal and cyclical influences on bred cow value. Fifteen years of USDA AMS data for seven Oklahoma auctions is used to estimate the bred cow hedonic model. We expect significant premiums for young, productive, black-hided, late gestation cows. Results will help producers improve replacement cow procurement and cow marketing strategies. Producers will be able to identify traits buyers find desirable allowing them to market a more valuable product.