Essays on Beef Calf Management Practices and the Market Value of Seller Reputation

Abstract

This thesis summarizes results from two recent surveys. The first essay discusses beef management and marketing practice adoption by Oklahoma cow-calf producers. Adoption rates for beef calf management and marketing practices as well as constraints and incentives to practice adoption are summarized. Increased reputation with buyers is a commonly cited incentive for producers to adopt certain practices. The second essay expands on this aspect of reputation with an additional survey. This survey uses a stated preference approach to elicit bids from feeder cattle buyers based upon varying levels of preconditioning and reputation. Results from both surveys contribute to the knowledge base in agricultural economics and also have valuable extension programming implications.The value of seller reputation in cattle markets is discussed anecdotally as an important component of the price paid by the buyer, but has not been observable with standard market data. A positive reputation may be built over time by marketing cattle that perform well for buyers� needs. That performance is linked to a host of things, including calf management practices and cattle genetics. Likewise, a negative reputation is possible as well. When sellers do not have an established reputation, it is possible that third-party certification of management practices partially substitutes for an established reputation regarding market value. This study will use an electronic survey administered to cattle buyers at live cattle auctions across Oklahoma to assess the contribution of seller reputation to market price for feeder cattle. The results will benefit cattle producers as the relative value of establishing a reputation or substituting third-party verification for reputation determines the incentives for adopting and/or certifying recommended management and marketing practices. This knowledge can be used to enhance the profitability of cattle producers through better decision making regarding management and marketing practices.