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Economics of Purchasing Genetically Superior Beef Bulls

  • G. M. Clary (a1), J. W. Jordan (a1) and C. E. Thompson (a2)

Abstract

Net present value analysis is used to derive the marginal bid price for a beef herd sire from after-tax net revenues and cash flow influenced by genetic improvements. Marginal bid price represents the additional amount a producer could pay, above the present value of the current beef herd sire, for a sire expected to exhibit superior performance as reflected by increased average weaning weights of offspring.

An analysis of the profitability of purchasing a breeding bull for a commercial beef cow herd is presented as an application. Several alternative scenarios illustrate the impact of selected determinants on the marginal bid price of a bull.

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References

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Keywords

Economics of Purchasing Genetically Superior Beef Bulls

  • G. M. Clary (a1), J. W. Jordan (a1) and C. E. Thompson (a2)

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