ENHANCING THE COMPETITIVENESS AND VALUE OF U.S. BEEF (FROM W-1177)

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: TERMINATED
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 0221065
• Project No.: MO-SSRR0709
• Multistate No.: W-2177
• Project Start Date: Nov 1, 2009
• Project End Date: Sep 30, 2012

Project Director
Parcell, J.

Recipient Organization
UNIVERSITY OF MISSOURI
(N/A)
COLUMBIA,MO 65211

Performing Department
Social Sciences

Non Technical Summary
The beef industry lacks from product consistency. Because of the broad range of genetics used at the farm level, inability to coordinate breeding period, and unpredictable ownership of calves from farm to processing, there are ineffieciences that leave money on the table at each stage in the value chain. Various methods (e.g., snip clips) are being investigated to look at increaisng predictability of calf carcass quality and feedlot productivity. A portion of this research looks at how beef-cow producers can coordinate genetics across farms to increase predictability, while still maintaining some level of autonomy with management decision making. Also, as economies around the globe grow in wealth eating patterns change. Most importantly, consumers switch from starch based to protein based diets as incomes change. Cultural changes also occur as wealth grows. Such changes are bound to lead to a protein demand explosion over the next two decades. Understanding how, and where, global demand for protein from beef will evolve is paramount to American agribusinesses and agricutlural producers profiting in the future.

Animal Health Component

80%

Research Effort Categories

Basic

5%

Applied

80%

Developmental

15%

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
604	3310	3010	100%

Knowledge Area
604 - Marketing and Distribution Practices;

Subject Of Investigation
3310 - Beef cattle, live animal;

Field Of Science
3010 - Economics;

Keywords

beef-cow

hedonic

genetics

value added

supply chain

income

Goals / Objectives
1.Enhance palatability, processing, and marketing of beef by studying instrument grading, beef flavor and tenderness technologies, and carcass cutting strategies 2.Develop science-rooted strategies and technologies to reduce foodborne illness and improve the effectiveness of policies related to food safety and trade. 3.Determine factors influencing domestic and international consumer preferences for beef. 4.Assess supply chain management strategies to identify and overcome barriers that interfere with the transmission of consumer preferences to producers 5.Evaluate the cost/benefit of traceability and assess its value in market-based programs

Project Methods
Objective 3. I will focus the value of product attributes, consuemr credence attributes, and marketet attributes. I will use the hedonic modeling methodology to assess all attributes values using multivariate statistical analysis. Second, I will use quantity dependent models of international beef consumption to understand the relationship between income and non-processed and processed beef consumption. Specifically, I look at how international buyers switch to value-added beef products as their level of purchasing power (income) changes. Also, from this model own- and cross-elasitcity estimates can be obtained. Objective 4. I will focus on understanding how genetic coordination, at the beef-cow producer level, can be used to achieve scale, consistency, and efficiency throughout the beef cattle supply chain. Three methodologies are applied here. First, through frequent surveys of beef-cow producer practices and willingness-to-adopt of reproductive technologies I am able to arrive at barriers and how to overcome such barriers. Second, I use primary-level data to conduct non-parametric partial budgeting to look at cost-returns to the supply chain from coordinating genetics at the beef-cow producer level. Finally, I integrate risk into the genetic, reproduction, and management decision process using risk frontier analysis to determine dominate practices for given risk levels.

Progress 11/01/09 to 09/30/12

Outputs
Target Audience: Missouri beef cow producers interested in this program worked with 7 extension regional livestock specialists to develop Quality Beef, By the Numbers as a brand-line exxtension of the Missouri Show-Me-Heifer project. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? During the project period I coordinated a producer and extension field staff symposium involving a trip to southwest Kansas to visit a cattle feedlot, for producers and practitioners to learn how cattle are managed in a feedlot, and various educational stops along with the trip, including Kansas State university faculty, Angus association, Excel Meat Solutions, Certified Angus Beef and feedlot operators. I collaborated in presenting at producer and professional association meetings. I was involved with mentoring one post-doctoral fellowship student wand on PhD student. How have the results been disseminated to communities of interest? Through publications. What do you plan to do during the next reporting period to accomplish the goals? This is the final report.

Impacts
What was accomplished under these goals? My work on this project looks at the economic valuation of genetic technologies into the beef herd through the dam. This project involves producers and animals associated with the Missouri Show Me Select Heifers, Inc. Since the beginning of incorporating new genetic technologies into the heifer development program in 2007, there has been 69 in 2008, 73 in 2009 and 119 in 2010 advanced genetic quality heifers sold through sanctioned sales. The preliminary economic assessment for heifers sold with higher quality genetic characteristics average between $45/head and $125/head, depending on year with late years associated with higher premiums, over traditional Show-Me heifers and some $295/head to $375/head over conventional bred heifers sold at local auction markets. This is an indication of a change in action and a change in knowledge due to producer observed willingness-to-adopt and buyer observed willingness-to-pay. The value proposition for buyers is that heifers, and later as cows, have a higher probability of yielding a better quality, i.e., growth performance and carcass performance, calf. Also, the base economic value for Show Me Heifers is that these heifers have a longer production life and that as a heifer the cow yields a higher quality calf. These factors increase the net present value of the animal.

Publications

• Type: Journal Articles Status: Published Year Published: 2010 Citation: Parcell, J.L., J. Franken, M. Cox, D. Patterson, and R. Randle. Buyer Perceptions and Willingness-to-Pay for Bred Heifer Characteristics. Journal of Agricultural Economics. 41(5) September 2010.
• Type: Journal Articles Status: Published Year Published: 2010 Citation: Franken, J., J. Parcell, D. Patterson, M. Smith, and S. Poock. Cow-Calf Producer Interest in Retained Ownership. Journal of Agribusiness 28,1(Spring 2010):49-59
• Type: Journal Articles Status: Published Year Published: 2010 Citation: Patterson, D., D.A. Mallory, J.L. Parcell, M.F. Smith, and S.E. Poock. 2010. Transferring reproductive technologies to the field: Fixed-time AI and High Accuracy Sires. Journal of Animal Sciences. 887(E Supp 1.2):78
• Type: Conference Papers and Presentations Status: Published Year Published: 2010 Citation: Franken, J.R.V., J. Parcell, D. Patterson, M. Smith, and S. Poock. Cow-Calf Producer Interest in Retained Ownership Southern Agricultural Economics Association. (February 2010). Published on-line at [http://ageconsearch.umn.edu/bitstream/56421/2/Cow%20Calf%20Producer% 20Interest%20in%20Retained%20Ownership_12-21-09_.pdf].
• Type: Conference Papers and Presentations Status: Published Year Published: 2010 Citation: Rees, L, J. Parcell, D. Patterson, M. Smith, and S. Poock. Beef Reproductive Technology Adoption- Impact of Production Risk and Capitals. Southern Agricultural Economics Association. (February 2010). Published on-line at [http://ageconsearch.umn.edu/bitstream/56492/2/Rees_Parcell_Patterson _Smith_Poock_SAEA.pdf].
• Type: Conference Papers and Presentations Status: Other Year Published: 2010 Citation: Parcell, J.L. Managing Quality Through Breeding and Coordinating Sires. Agricultural and Applied Economics Association Annual Meeting, Denver, CO, 2010.
• Type: Conference Papers and Presentations Status: Other Year Published: 2011 Citation: Franken, J.R.V., J.L. Parcell, and G.T. Tonsor. Consumers' Willingness-to-Pay for Retail Branded Beef Products with Bundled Attributes. Agriculture and Applied Economics Association Annual Meetings. July 24-26, 2011, Pittsburgh, Pennsylvania, selected paper.
• Type: Conference Papers and Presentations Status: Other Year Published: 2011 Citation: Rees, L. M., J. Parcell and D. Patterson. "Returns and Risk Preferences of Coordinated Beef Sire Genetics," Selected paper presented at the Western Agricultural Economics Association Annual Meeting, Banff, Alberta Canada. June, 2011.
• Type: Journal Articles Status: Awaiting Publication Year Published: 2014 Citation: Elliott, L., J.L. Parcell, D. Patterson, M. Smith, and S. Poock. Factors Influencing Beef Reproduction Technology Adoption. Journal of the American Society of Farm Managers and Rural Appraisers.
• Type: Journal Articles Status: Published Year Published: 2013 Citation: Elliott, L., J.L. Parcell, and D. Patterson. Determination of the Value of Minimum Sire Accuracy Traits. Journal of Agricultural and Applied Economics. 45, 2 (May 2013): 259-75.
• Type: Journal Articles Status: Published Year Published: 2012 Citation: Franken, J.V. and J.L. Parcell. Factors Influencing Bull Price Evidence from Missouri Auction Data. Journal of Agribusiness.30(Spring 2012):107-123.
• Type: Journal Articles Status: Published Year Published: 2011 Citation: Carolan-Robertson*, J., J.L. Parcell, D. Patterson, and R. Eakins. Valuing Beef Herd Dam Genetic Pedigree Management. Journal of the American Society of Farm Managers and Rural Appraisers, June 2011. Published online at [http://portal.asfmra.org/userfiles/file/352_Parcell.pdf].
• Type: Journal Articles Status: Published Year Published: 2011 Citation: Parcell, J. L., J. Franken, D. Schaefer, D. Patterson, M. John, M. Kerley, and K. Haden. Coordinating Sire Genetics in a Synchronized AI Program. Journal of the American Society of Farm Managers and Rural Appraisers, June 2011. Published online at [http://portal.asfmra.org/userfiles/file/353_Parcell.pdf].

Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: During the project period I coordinated a producer and extension field staff symposium involving a trip to southwest Kansas to visit a cattle feedlot, for producers and practitioners to learn how cattle are managed in a feedlot, and various educational stops along with the trip, including Kansas State university faculty, Angus association, Excel Meat Solutions, Certified Angus Beef and feedlot operators. I collaborated in presenting at producer and professional association meetings. I was involved with mentoring one post-doctoral fellowship student wand on PhD student. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
My work on this project looks at the economic valuation of genetic technologies into the beef herd through the dam. This project involves producers and animals associated with the Missouri Show Me Select Heifers, Inc. Since the beginning of incorporating new genetic technologies into the heifer development program in 2007, there has been 69 in 2008, 73 in 2009 and 119 in 2010 advanced genetic quality heifers sold through sanctioned sales. The preliminary economic assessment for heifers sold with higher quality genetic characteristics average between $45/head and $125/head, depending on year with late years associated with higher premiums, over traditional Show-Me heifers and some $295/head to $375/head over conventional bred heifers sold at local auction markets. This is an indication of a change in action and a change in knowledge due to producer observed willingness-to-adopt and buyer observed willingness-to-pay. The value proposition for buyers is that heifers, and later as cows, have a higher probability of yielding a better quality, i.e., growth performance and carcass performance, calf. Also, the base economic value for Show Me Heifers is that these heifers have a longer production life and that as a heifer the cow yields a higher quality calf. These factors increase the net present value of the animal.

Publications

• Carolan-Robertson, J., J.L. Parcell, D. Patterson, and R. Eakins. Valuing Beef Herd Dam Genetic Pedigree Management. Forthcoming, journal article, 2011.
• Parcell, J. L., J. Franken, D. Schaefer, D. Patterson, M. John, M. Kerley, and K. Haden. Coordinating Sire Genetics in a Synchronized AI Program. Forthcoming, journal article, 2011.
• Franken, J., J. Parcell, D. Patterson, M. Smith, and S. Poock. Cow-Calf Producer Interest in Retained Ownership. Journal of Agribusiness 28,1(Spring 2010):49-59
• Parcell, J.L., J. Franken, M. Cox, D. Patterson, and R. Randle. Buyer Perceptions and Willingness-to-Pay for Bred Heifer Characteristics. Agricultural Economics. 41(5) September 2010.
• Patterson, D., D.A. Mallory, J.L. Parcell, M.F. Smith, and S.E. Poock. 2010. Transferring reproductive technologies to the field: Fixed-time AI and High Accuracy Sires. Journal of Animal Sciences. 887(E Supp 1.2):78
• Franken, J.R.V., J. Parcell, D. Patterson, M. Smith, and S. Poock. Cow-Calf Producer Interest in Retained Ownership Southern Agricultural Economics Association. (February 2010). Published on-line at [http://ageconsearch.umn.edu/bitstream/56421/2/Cow%20Calf%20Producer% 20Interest%20in%20Retained%20Ownership_12-21-09_.pdf].
• Rees, L, J. Parcell, D. Patterson, M. Smith, and S. Poock. Beef Reproductive Technology Adoption- Impact of Production Risk and Capitals. Southern Agricultural Economics Association. (February 2010). Published on-line at [http://ageconsearch.umn.edu/bitstream/56492/2/Rees_Parcell_Patterson _Smith_Poock_SAEA.pdf].
• Parcell, J.L. Managing Quality Through Breeding and Coordinating Sires. Agricultural and Applied Economics Association Annual Meeting, Denver, CO, 2010.