Are Cattle Genetics Priced to Reflect Carcass Value

Abstract

The impact of breed on carcass characteristics in various breeds of cattle has been well documented. This paper attaches these differences in breed characteristics to end revenue via different breed and breed combinations, percentage of Angus in pedigree, and purebred status. We find that while the genetics of many breeds is priced roughly in line with its value, some breeds are overpriced or underpriced by enough to significantly improve a cattle operation’s profitability. We find that, relative to a pure Angus base, most breeds are less profitable in terms of carcass revenue per hundredweight.