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Characteristics of Beef Cattle that determine the Price Difference between Traditional and CPH Sales
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Cattle producers are faced with difficult decisions on how they market their calves. This study examines the different characteristics that play a role in determining the price of a group of animals by identifying characteristics that determine price differentials relative to the price premium given to producers participating in CPH sales. This is important information when producers are making marketing decisions. The model developed in this study provides producers with evidence of what characteristics generate the highest price, as well as relative differences between sales locations and types of sales. The more information available to producers, the better equipped they are to make decisions. This study will provide useful information to beef producers on the production side of the process as well as Cattle buyers and consumers who are interested in a scientific approach concerning what they are being charged to purchase different cattle characteristics at different locations in Kentucky.
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