Hedonic Analysis of Purebred Beef Bull Prices

Abstract

Purebred beef breeding bulls are a key input in the production process for beef cattle. This study estimates the value that each characteristic contributes to the price paid for a purebred beef breeding bull. The important EPD characteristics included in this study are birth-weight, weaning-weight, milk, yearling-weight, rib eye area, percent intramuscular fat, fat, and percent retail product. The disparity in price paid for purebred beef breeding bulls can be explained by a breakdown of characteristics and their associated values. This study determined that both physical carcass measurements and carcass EPDs with the exception of the fat EPD have a positive relationship on the price paid for purebred beef breeding bulls. Buyers of purebred beef breeding bulls are aware and price responsive to carcass measurements and EPDs. Additionally the price paid for purebred beef breeding bulls is positively related to scrotal circumference and volume discount.