Economic value of Brangus cattle traits in Argentina

Abstract

Starting in the early 2000s, a boom in demand for agricultural commodities displaced cattle ranching out of the most productive areas of the Pampas' prairie. The crossbreeds between Angus and Hereford with Brahman, that is, Brangus and Braford, have been successfully adopted across Argentina. However, little is known about the specific bulls' traits that drive the demand for genetic selection of cattle outside the Pampas. Obtaining the economic value of traits would help to identify the demand for adapting livestock production to different ecosystems while preserving the meat quality of Angus and Hereford cattle. We estimated hedonic price models using Brangus bull sales data from two cattle breeding ranches in the north of Cordoba province. We find that cattle ranchers prefer observed traits such as weight, coat color, and age, while genetic indicators such as Expected Progeny Differences (EPDs) have secondary importance. We argue that stronger preferences for red‐coated bulls, as opposed to black‐coated bulls, could be associated with the demand for reducing heat stress. In addition, the relatively weak association between EPDs and prices may be related to unobservable variables such as ranchers' characteristics, and that the value of genetics is implicit in the studs' reputation. [EconLit Citations: Q12, Q13, Q16].