Sorting Cattle with Accumulated Data: What is the Accuracy and Economics

Increasingly feedlots are managing cattle as individual animals rather than on a pen level basis. As such it is possible to predict an optimal marketing date for each animal. This analysis evaluates the keep-or-sell decision at reimplant time for feedlots cattle approximately 80 days prior to the expected marketing date for the entire group. A model predicting the least profitable cattle in the pen was developed using individual animal data representing over 14,000 cattle fed in 12 Iowa feedlots. It was tested out of sample on an additional 5,000 head to determine the optimal cull rate at reimplant time. The expected profit of sorting and reselling the least profitable cattle was calculated for two different levels of imperfect information and were contrasted against each other as well expost profit. The analysis concludes that there is a potential advantage of predicting the least profitable animals in a pen and re-sell them as heavyfeeder-cattle. It also shows that individual animal identification and management provides additional information and accuracy to apply this practice.Livestock Production/Industries,

Economics of Increased Beef Grader Accuracy

Carcass data from more than 38,000 cattle was used to compare the called and measured yield grade in two different periods: before and after the slaughter plant incorporated another grader in the line to improve grading accuracy. The study shows that the graders accuracy significantly increased. The higher accuracy affected all yield grades, but most notably resulted in more called yield grade 4 and 5 carcasses. This analysis will develop insight of what will be the effect of instrument grading that will be more accurate than previously called grades.The results are expressed as the conditional distribution of the called yield grade for a given value of the measured yield grade. The pricing grid currently used by the industry was used to analyze the effect of the graders errors on the expected values of the premiums on both periods and by yield grade. The results show that the company has an incentive to improve accuracy of grading. Simulating the results of measured vs. called yield grade over prices at the time and a standard industry grid showed that the plant can benefit by $1.32 per head by increasing grading accuracy.cattle, carcass grading, accuracy, economics of grading,

Business organization and coordination in niche hog marketing

Niche hog marketing enterprises face a unique set of challenges. This study considered five critical management issues, and analyzed the workings of two niche pork markets in Iowa. Issues of market timing, product quality, process verification, business organization, and sharing of returns are discussed

Comparison of the environmental footprint of the egg industry in the United States in 1960 and 2010

The US egg industry has evolved considerably over recent decades by incorporating new technologies and production practices. To date, there has been no comprehensive assessment of the resource demand and environmental effects of these changes. This study quantifies the environmental footprint of egg production supply chains in the United States for 2010 compared with 1960 using life cycle assessment. The analysis considers changes in both foreground (e.g., hen production performance) and background (e.g., efficiencies of energy provision, fertilizer production, production of feed inputs, and transport modes) system variables. The results revealed that feed efficiency, feed composition, and manure management are the 3 primary factors that determine the environmental impacts of US egg production. Further research and improvements in these areas will aid in continual reduction of the environmental footprint of the US egg industry over time. Per kilogram of eggs produced, the environmental footprint for 2010 is 65% lower in acidifying emissions, 71% lower in eutrophying emissions, 71% lower in greenhouse gas emissions, and 31% lower in cumulative energy demand compared with 1960. Table egg production was 30% higher in 2010; however, the total environmental footprint was 54% lower in acidifying emissions, 63% lower in eutrophying emissions, 63% lower in greenhouse gas emissions, and 13% lower in cumulative energy demand compared with 1960. Reductions in the environmental footprint over the 50-yr interval considered can be attributed to the following: 27 to 30% due to improved efficiencies of background systems, which outweighed the declining energy return on energy invested for primary energy sources; 30 to 44% due to changes in feed composition; and 28 to 43% due to improved bird performance

Business Organization and Coordination in Marketing Specialty Hogs: A Comparative Analysis of Two Firms from Iowa

We study business organization and coordination of specialty-market hog production using a comparative analysis of two Iowa pork niche-marketing firms. We describe and analyze each firm\u27s management of five key organizational challenges: planning and logistics, quality assurance, process verification and management of credence attributes, business structure, and profit sharing. Although each firm is engaged in essentially the same activity, there are substantial differences across the two firms in the way production and marketing are coordinated. These differences are partly explained by the relative size and age of each firm, thus highlighting the importance of organizational evolution in agricultural markets, but are also partly the result of a formal organizational separation between marketing and production activities in one of the firms

Economic Analysis of Increased Levels of Intramuscular Fat in Pork: Producer and Industry Opportunities

Ultrasound technology is available for accurately measuring intramuscular fat (IMF) in live pigs. This report provides information on the costs for pig producers and processors to implement this technology and what consumers are willing to pay for pork with improved levels of intramuscular fat. About half the participants in the willingness to pay study preferred the high IMF chop. They paid a premium of 25 percent over the low IMF chop.ultrasound technology, measure intramuscular fat live pigs, pig producer cost, pig processor costs, consumer willingness to pay, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Farm Management, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries, Marketing,

Economic Analysis of Pharmaceutical Technologies in Modern Beef Production

Cattle production is the largest single agricultural sector in the U.S. with cash receipts of $49.2 billion in 2005. Like the rest of agriculture cattle producers have adopted efficiency and quality improving technology to meet consumer demands for a safe, wholesome, and affordable food supply. This research uses meta analysis to combine over 170 research trials evaluating pharmaceutical technologies in the cow-calf, stocker, and feedlot segments of beef production. These results were used to estimate the farm level economic value of parasite control, growth promotant implants, sub-therapeutic antibiotics, ionophores, and beta agonists for the industry in 2005. The Food and Agriculture Policy Research Institute (FAPRI) model of U.S. agriculture was used to estimate the impact on beef production, price, and trade and the rest of agriculture if these pharmaceutical technologies were not available. Using 2005 prices and production levels the cost savings of the five pharmaceutical technologies evaluated was over$360 head over the lifetime of the animal. Selling prices would have to increase 36% to cover the increase in costs. The resulting industry would have a similar beef cow inventory, lower beef production, and higher prices from retail through to producers. However, the higher prices do not fully offset the higher cost of production. Some consumers are requesting “natural” or organically produced beef and a portion of consumers are willing to pay a premium for these products. However, if pharmaceutical technologies were not available in the US cost of production would rise forcing some producers and resources out of cattle production. The smaller industry and domestic beef supply, increased net beef imports, and higher prices to all consumers

Sorting Cattle with Accumulated Data: What is the Accuracy and Economics

Increasingly feedlots are managing cattle as individual animals rather than on a pen level basis. As such it is possible to predict an optimal marketing date for each animal. This analysis evaluates the keep-or-sell decision at reimplant time for feedlots cattle approximately 80 days prior to the expected marketing date for the entire group. A model predicting the least profitable cattle in the pen was developed using individual animal data representing over 14,000 cattle fed in 12 Iowa feedlots. It was tested out of sample on an additional 5,000 head to determine the optimal cull rate at reimplant time. The expected profit of sorting and reselling the least profitable cattle was calculated for two different levels of imperfect information and were contrasted against each other as well expost profit. The analysis concludes that there is a potential advantage of predicting the least profitable animals in a pen and re-sell them as heavyfeeder-cattle. It also shows that individual animal identification and management provides additional information and accuracy to apply this practice

Economic Analysis of Pharmaceutical Technologies in Modern Beef Production

Cattle production is the largest single agricultural sector in the U.S. with cash receipts of $49.2 billion in 2005. Like the rest of agriculture cattle producers have adopted efficiency and quality improving technology to meet consumer demands for a safe, wholesome, and affordable food supply. This research uses meta analysis to combine over 170 research trials evaluating pharmaceutical technologies in the cow-calf, stocker, and feedlot segments of beef production. These results were used to estimate the farm level economic value of parasite control, growth promotant implants, sub-therapeutic antibiotics, ionophores, and beta agonists for the industry in 2005. The Food and Agriculture Policy Research Institute (FAPRI) model of U.S. agriculture was used to estimate the impact on beef production, price, and trade and the rest of agriculture if these pharmaceutical technologies were not available. Using 2005 prices and production levels the cost savings of the five pharmaceutical technologies evaluated was over$360 head over the lifetime of the animal. Selling prices would have to increase 36% to cover the increase in costs. The resulting industry would have a similar beef cow inventory, lower beef production, and higher prices from retail through to producers. However, the higher prices do not fully offset the higher cost of production. Some consumers are requesting “natural” or organically produced beef and a portion of consumers are willing to pay a premium for these products. However, if pharmaceutical technologies were not available in the US cost of production would rise forcing some producers and resources out of cattle production. The smaller industry and domestic beef supply, increased net beef imports, and higher prices to all consumers.cattle, production cost, growth promotants, ionophores, antibiotics, parasite control, beta-agonists,