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Journal of Agricultural and Applied Economics, April 2008
Purebred bulls are bought and sold pri-
marily at private auctions where buyers assign
a value for an animal based on both its
observed physical characteristics and on
information that is disseminated to the buyer
through the seller. Physical characteristics for
an animal include conformation and frame
scores, structural soundness, and other valu-
ations of the animal’s observable qualities.
Information that is provided through the
seller often includes actual or adjusted animal
weights, EPDs, and ultrasound scan measure-
ments as well as some information pertaining
to the pedigree of the bull. Physically observed
traits, as well as an animal’s various weights,
have been used as evaluation techniques since
the inception of purebred bull sales; EPDs,
however, are a newer tool available to
producers. Production EPDs are now routine-
ly reported for purebred bulls sold in the
United States. Although not yet as common
as the production EPDs, carcass and ultra-
sound information is increasingly being pro-
vided to potential buyers. It is certainly
plausible that both actual weights (birth,
weaning, and yearling) and their correspond-
ing EPDs are viewed as important predictors
of the performance of a bull’s future offspring.
From a statistical standpoint it could be
argued that EPDs ‘‘should’’ be a better
predictor, though earlier mentioned previous
research suggests that the market may not
value the EPDs as highly as the actual
measurements. In addition, there are obvious
costs associated with collecting and reporting
each additional piece of information. Sorting
out these important issues is important for the
purebred cattle industry as the marketing
environment and information technologies
continue to evolve.
Objectives of this study are to reexamine
the role of performance EPDs and other
information in determining value for purebred
Angus bulls. Specific consideration is given to
carcass quality predictors in an attempt to
define their role in breeding stock selection.
These aspects, along with other measures,
such as actual weights, regional issues, and
marketing factors, are examined as they
pertain to the value of purebred Angus bulls.
Previous Research
Dhuyvetter et al. examined EPDs as a
determinant of a bull’s value. They collected
data from 26 multibreed Kansas bull sales
during the spring of 1993 and modeled bull
price as a function of physical and genetic
characteristics, expected performance charac-
teristics, and marketing factors. Results
showed that in Angus bulls, both EPDs and
actual weights were significant, as were age,
sale order, pictures, and semen retention.
Dhuyvetter et al. were able to compare the
parameter values of actual weights with those
for EPDs, but their findings left questions of
the relative value of EPDs largely unanswered.
Following Dhuyvetter et al., Chvosta,
Rucker, and Watts compared values for EPDs
and simple performance measures (SPMs), that
is, physically observed traits, for purebred
Angus bulls. Data were collected from animals
raised on a single Montana ranch from 1982 to
1997 and for bulls sold on 11 ranches in South
Dakota and Nebraska from 1986 to 1996. They
modeled bull price as a function of beef price,
feed price, age, and performance measures.
Variables that were significant in explaining
price included 205-day weight, 365-day weight,
birth and yearling-weight EPDs, and age and
age squared.2 Based on their results, Chvosta,
Rucker, and Watts concluded that, although
both EPDs and SPMs are significant in
explaining price, SPMs may hold relatively
more economic information pertaining to price.
Wallburger examined the relationship be-
tween price and attributes of bulls sold in
Alberta, Canada. Data on price, birth and sale
weight, average daily gain, back fat, scrotal
circumference, ribeye area, and lean meat yield
were collected on nearly 800 bulls of various
breeds sold at a single bull test auction in 1989
and 1993 and from 1996 to 2000.3 A tobit
2 Dhuyvetter et al. did not include yearling weight
or yearling-weight EPDs in their evaluation, as they
contended that these variables were highly correlated
with weaning weight and its corresponding EPD.
3 This is the only study found that examined the
relationship of bull price and carcass characteristics.
No study to date that the authors are aware of has
related price to ultrasound or carcass EPDs.