PSVII-7 Impact of USDA feeder cattle grade and hide color on sale price of West Virginia feeder cattle

Abstract

Most cow/calf operations in West Virginia are small scale (<100 cows) and calves from multiple operations must be comingled to form marketable lots. Criteria used to establish sale lots are weight, hide color, and USDA feeder cattle grade (FCG). The objective of this study was to determine the impact of hide color and FCG on calf gross sale value (GSV). Results of graded feeder calf sales from fall 2016 (N = 16) and fall 2017 (N = 18) were analyzed totaling 23,859 calves marketed as 2,507 lots. Calves were stratified by sale weight: 136-181 kg (3WT), 182-226 kg (4WT), 227-271 kg (5WT), 272-317 kh (6WT), and 318-362 kg (7WT); hide color: black (BLK) or colored (NBLK), and FCG: LM1, LM2, and non-graded consignor group (CG). Data were analyzed using the PROC GLM procedure of SAS with year and lot size (LS) as covariates. Although numerical differences in GSV existed in the 3WT, 5WT, and 6WT groups ($31.58, $15.00, $11.29/head greater for BLK calves, respectively), only 4WT BLK calves were valued significantly more ($577.22 vs $547.13, respectively; P < 0.01). No value difference was detected in 7WT calves based on hide color. With respect to FCG, no statistical difference was observed in GSV of 3WT and 6WT calves although LM1 3WT calves had a numerical value advantage of $27.73/head and $35.17/head over LM2 and CG calves, respectively, while LM1 6WT calves had a $30.05/head value advantage over LM2 6WT calves. In 4WT and 5WT classes, LM1 calves were valued higher than LM2 calves ($33.75 and $56.96/head, respectively; P < 0.01). Conversely, 7WT CG calves were valued higher than both LM1 ($888.68 vs $838.85/head, P = 0.08) and LM2 calves ($888.68 vs $799.25/head, P < 0.001). Across all weight classes, LM1 calves exhibited a numerical advantage of $37.62/head when compared to LM2 calves indicating optimum FCG is more valuable regardless of weight class. These data also indicate that hide color is less impactful on GSV as sale weight increases.