Masters Theses

Date of Award

8-1981

Degree Type

Thesis

Degree Name

Master of Science

Major

Animal Science

Major Professor

Haley M. Jamison

Committee Members

J. B. McLaren, Don O. Richardson

Abstract

The objective of this study was to partition the total variability of sale price received for performance tested bulls into that which is attributed to various selected criteria. The records of seven Tennessee performance tested bull sales were included. These records were collected from year 1973 through 1979 and consisted of 52 Hereford, 193 Angus and 321 Polled Hereford bulls. The mean sale price varied greatly among years with a low of $707 in 1974 to a high in 1978 of $1521. Realizing the tremendous amount of inflation that has occurred during this time interval, an analysis was performed in which the consumer price index (CPI) was entered into the model as a co-variate to adjust for inflation. The prices of slaughter bulls (SB) and slaughter cows (SO) as well as market prices of feeder calves (FC) were also entered to adjust for yearly market fluctuations. Performance data were entered into the model last in a logical order relating to the ease of obtainability by the buyer. Results of the subsequent analysis indicated that 54 percent of the total variability was explained by the model. The CPI accounted for 8.61 percent of the total explained variation. Market prices, when considered sequentially after CPI, were responsible for 27.2 percent. The addition of performance data explained the remaining 18 percent of the variability explained by the model. A second analysis was conducted in which the variability of price was partitioned into the constituents of a mathematical model which included the effects of year, breed and year by breed interaction as independent variables. This analysis indicated that the effect of year was very highly significant (P < .0001) as well as the year by breed interaction (P < .0001). Breed was also significant (P < .05). A third analysis to evaluate the effects of performance information alone on sale price was conducted. Buyers found sale-day age and 365-day weight to significantly (P < .05) explain variation in sale price of bulls irregardless of breed. Major breed differences occurred with 205-day weight. This variable was only significant for Angus buyers. Final off-test weight and preweaning average daily gain were non-significant for Polled Hereford. All performance traits increased significantly during the years of this study with the exception of preweaning average daily gain which decreased significantly during the latter years. The effect of inflation, market trends and performance traits all affect bull prices. Important performance traits included sale-day age and 365-day weight.

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