Region of Origin in the United States Affects Price Premiums Associated with Value-Added Health Protocols of Beef Calf Lots Sold Through Summer Video Auctions from 2010 Through 2018

Objective: The objective was to evaluate the effects of value-added calf health protocols within various regions of the United States on the sale price of beef calf lots sold via summer video auction. Study Description: Information describing lot factors was obtained through a livestock video auction service (Superior Livestock Auction, Fort Worth, TX). Descriptive characteristics were available over nine years (2010-2018) representing 43,242 lots of beef calves. Data were evaluated to investigate participation in various health programs across regions. A multiple regression model was developed for each region to determine the value associated with health protocols throughout regions of the United States. The Bottom Line: While variation in the sale price of beef calves across regions suggests evident differences in the recognized value by buyers, results indicate the value associated with the vaccination and management of calves with potentially larger transportation distances from origin to delivery.


Introduction
The benefits associated with the incorporation of value-added health protocols are thoroughly understood. The practice of preconditioning aims to reduce the risk of bovine respiratory disease, while increasing calf immunity and minimizing stress around weaning. The advantages associated with this increased level of management, and the value that accompanies the practice are well established. While price premiums are evident, it is imperative to consider that the value of a vaccination program may be dependent on the location in which a lot of calves originate.
While extensive research shows that preconditioning programs provide price premiums on a national basis, to our knowledge the effect of varying levels of management throughout different regions of the United States has not been investigated. Differences in local climate conditions, diverse management and marketing strategies, and variation in trucking distance are regional factors that can influence the health protocol calves may receive. These concerns suggest the potential for observed differences in the relative value associated with various preconditioning programs across numerous regions of the country.

Experimental Procedures
Information describing factors about lots marketed and sold through a livestock video auction service (Superior Livestock Auction, Fort Worth, TX) were obtained from the auction service in an electronic format. These data were collected for lots of beef calves offered for sale during summer sales from 2010 through 2018.
Consigners to Superior Livestock Video Auction have the option to enroll their calves in different value-added health protocols. These programs are designed to align with various management practices, uniquely fitting operations with diverse facilities and marketing goals. A lot was categorized into one of five groups concerning health status: 1) VAC 34 or 34+; 2) VAC 45 or 45+; 3) Weaned: viral vaccinated; 4) Non-weaned: viral vaccinated; and 5) VAC 24. Calf lots originated from one of five U.S. regions: West Coast (California, Idaho, Nevada, Oregon, Utah, and Washington), Rocky Mountain/North Central (Colorado, Iowa, Illinois, Indiana, Michigan, Minnesota, Montana, North Dakota, Nebraska, South Dakota, Wisconsin, and Wyoming), South Central (Arizona, Kansas, Missouri, New Mexico, and Oklahoma), Southeast (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Tennessee, Texas, and Virginia), and Northeast (excluded due to few lots). For each region included within the study, a separate multiple regression model was developed using a backwards selection procedure to evaluate the effect of health program on the sale price of beef calves.
The specific and current requirements of each of the video auction's recognized vaccination protocols (VAC 34 and 34+, VAC 45 and 45+, and VAC 24) are available at www.SuperiorLivestock.com. Calves not qualifying for a defined health program were categorized into one of two groups: lots that were weaned and received at least one dose of a viral vaccination prior to shipment from the farm or ranch of origin (Weaned: viral vaccinated), and those lots that were non-weaned and received at least one dose of a viral vaccination (Non-weaned: viral vaccinated).

Results and Discussion
There were 43,242 total lots of beef calves fitting the study criteria. Within the analysis including all four regions, lots qualifying for VAC 45 or 45+ sold for the greatest price (P < 0.05) compared to all other health protocols. In the West Coast, lots qualifying for VAC 45 or 45+ and Weaned: viral vaccinated sold for similar (P > 0.05) prices, but at prices greater (P < 0.05) than calves administered all other health protocols within that region. Within the Southeast region, lots qualifying for VAC 45 or 45+ and Weaned: viral vaccinated sold for similar (P > 0.05) prices, and again at prices greater (P < 0.05) than calves in all other health programs. In both the North Central and South Central regions, lots meeting the requirements for VAC 45 or 45+ sold for the greatest (P < 0.05) price in their respective regions. Specific premiums for health protocols within respective regions can be seen in Table 1.
Differences in the sale price of calves eligible for numerous health programs indicates that the relative value of a calf health program recognized by buyers fluctuates between regions. As distance between origin of calves sold from the most concentrated area of cattle feeding in the northern plains became greater, price premiums concerning health protocols increased. This finding suggests evident advantages and premiums associated with vaccination programs for those areas located farther away from the plains, as calves transported farther may be at greater risk of health issues.

Implications
While there are clear price advantages associated with vaccination and weaning management strategies across all regions, information regarding premiums within specific areas may prove valuable to producers from these regions. Calves in this category were vaccinated against one or more of the following respiratory tract viruses at some time between birth and the date of delivery: IBR, BVD Type 1, BVD Type 2, PI 3 , and BRSV. a,b,c,d Means without a common superscript differ (P < 0.05) in each region.