Benefits of Preconditioning Cattle under Stochastic Feedlot Performance. (10th November 2022)

• Record Type: Journal Article
• Authors: Verteramo Chiu, Leslie J.; Tauer, Loren W.; Kaniyamattam, Karun; Lhermie, Guillaume; Gröhn, Yrjo T.
• Is Part Of: Journal of agricultural and applied economics. Volume 54:Number 4(2022)
• Page Start: 656
• Page End: 673
• Publication Date: 2022-11-10
• Subjects: antimicrobial use -- backgrounding -- feedlot economics -- preconditioning cattle -- stochastic dominance; Q12 -- Q13 -- Q16; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/aae.2022.32
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract: Preconditioning cattle, a management practice of preparing cattle for feedlots as well as following a vaccination protocol for common diseases, has been shown to add value to cattle by reducing disease incidence and severity, yet it is not universally adopted. We estimated the benefits to a beef system of preconditioning weaned calves versus not preconditioning under stochastic returns. Purchasing preconditioned calves makes economic sense, but market efficiency requires complete information of the health status of the cattle, feedlot performance, along with the right market mechanisms, which may not be available in all markets.