Analysis and evaluation of multiple price grid scenarios and relationships for live cattle

Abstract

Field data were supplied by the American Gelbvieh graphics. Association on cattle enrolled in the American Gelbvieh Alliance (AGA) grid pricing program. The data consisted of 123,624 cattle enrolled in the AGA between January 29, 1996 and July 29, 1998. A pricing series was used to create a axed Choice premium increase of $0.50 from-$1.00 to $11.00. After each price set was compiled, means for Gelbdata, Closeout, and Individual data Gelds were computed for the top (Top) and bottom (Bottom) 25% of each pen. Paired t-tests were run on each mean from each price series for all 54 data gelds involved. Means for each geld were compared between each quartile and the point at which mean differences became significant was determined using paired t-tests. In the Gelbdata data set, Top cattle had higher Quality Values, higher Quality Grade %, lower Yield Grade Value, lower Yield Grade %, higher Average Yield Grade, higher Conformance Value, lower Out Cattle %, lower % Lights, lower % Heavies, lower % Dark Cutters, higher Dressing Percent Value, higher Dressing Percent, higher Total premiums, higher Total value, lower Live weights, and lower carcass weights values than Bottom cattle as Premiums increased. Closeout data showed that Top cattle will have lower Pay Weights 111, higher % Shrink Off-Truck Conversion values than Bottom cattle as Premium increases. The Individual data showed that Top em/ie will have lower QGnum, lower Marbnumeric, higher Fat, and higher YG values than Bottom cattle as Premium increases.