Determinants of prices for cow-calf pairs

A study of price determinants for cow-calf pairs was undertaken at a local Kansas auction company during 1993. Cow breed, age, health, condition score, horns, frame size, and whether the cow h ad been bred back impacted cow-calf pair values, as well as calf weight, health, and frame score. Addition ally, pairs per pen significantly impacted prices. Young healthy cows with healthy large calves received the highest prices.


Introduction
Our purpo se was to estimate market values of characteristic s of individual cow-calf pairs to assist producers in making informed management and marketing decisions.Prices paid for pairs ranged from $475 to $1350, with an average price per pair of $947. 3 9.Typical price range on any given day at a cow-calf auction during 1993 was $700/p air (78% of the average price).This large variability indicates that producers have significant incentive to supply desirable pairs.

Experimental Procedures
Data on prices and physical characteristics of cow-calf pairs were collected from seven cow-calf auctions held at a local commission company.Averag e price per pair is the amount paid for a cow-calf pe n divided by the number of pairs in the pen.A total of 496 pens was evaluated, consisting of 2092 pairs.The date; price; pair s per pen; cow breed; cow condition; cow age; cow health; existence of horns on cows; cow frame size; type of buyer; whether the cow was registered; whether the cow was bred back; order of sale; twin calves; and calf age, weight, breed, health, frame size, and musclin g were recorded for each cow-calf pen.Regression analysis was used to determine the values associated with various pair characteristics.

Results and Discussion
The regression analysis was able to explain approximatel y three fourths of the variation in pair prices.With all else constant and using Angus as the standard, average discounts per pair were $62.81 for Herefords, $35.05 for other English breeds, $36.96 for continentals, and $499.24 for Longhorns.Dairy breed pairs received a $201.77premium relative to Angus.
Figure 1 illustrates that price per pair changes little until calves weigh about 200 lb and then incr eases at an increasing rate.Calves weighing below 200 lb are riskier for buyers, because growth potential and health conditions may not be apparent at this young age .Figure 2 shows that buyers prefer to fully utilize the capacity of their available transportation.Straight truc ks and stock trailers were typical at this auction site, which corresponds to the optimal number of pairs per pen. Figure 3 illustrate s that older cows are discounted because of fewer remaining reproductive years.
Lameness discounts were $67.69/pair for a cow and $389.73/pair for a calf .Cows with bad udders were discounte d $65.34/pair.Cows that were bred back received pr emiums representing the cost associated with breeding the cow; $68.24/pair .Cows with horns were discounted $66.64/pair.Table 2 indicates premiums and discounts for cow condition, cow frame, and calf frame.A premium was paid for large-frame cows, which sold higher than medium-frame cows.Small-fram e calves were discounted , but there was no premium for large-frame calves.
Wide variation in pr i ce received at cow-calf pair auctions makes it im perative that producers understan d values of animal traits.This study found an unhealthy cow or calf to be of little value to the buyer.Smaller and thinner cows and calves were discounted relative to averagecondition animals .Marketing pairs in sufficient number for efficient transpor t ation increased the price.Heavier weight calves represent lower risk for the buyers than lighter weight calves.

Figure 1 .
Figure 1.Effect of Calf Weight on Price for Cow-Calf Pairs

Table 1 . Effect of Selected Traits on Price for Cow-Calf Pairs
**Significantly different from zero at the .10level.*

Table 2 . Effect of Frame and Grade on Price for Cow-Calf Pairs
**Significantly different from zero at the .10level.*