Beef Buzz News
Study Shows Cattle from Beef Quality Assurance Certified Producers Command Higher Premium at Auction
Wed, 14 Aug 2019 15:23:55 CDT
While producers have traditionally participated in Beef Quality Assurance (BQA) because it's the right thing to do, there is sound research that indicates BQA certified producers can benefit financially as well. According to a recent study by the Beef Checkoff-funded BQA program and conducted by Colorado State University (CSU), results show a significant premium for calves and feeder cattle sold through video auction markets.
"The value of a seller being BQA Certified can really only be captured when information is shared between seller and buyer, which is consistently done via the sale of cattle by video auction companies," said Jason Ahola, Ph.D. and professor of animal sciences at CSU, who spoke with Radio Oklahoma Ag Network Farm Director Ron Hays during the recent 2019 Cattle Industry Convention. Ahola continued to explain that the results of the BQA value study emphasize the importance of transferring information from sellers to buyers as well as the importance of collecting BQA certification information during the auction process.
The research study "Effect of Mentioning BQA in Lot Descriptions of Beef Calves and Feeder Cattle Sold Through Video-based Auctions on Sale Price," led jointly by CSU's Departments of Animal Sciences and Agricultural and Resource Economics, was conducted to determine if the sale price of beef calves and feeder cattle marketed through video auction companies was influenced by the mention of BQA in the lot description. The result was a premium of $16.80/head for cattle that had BQA listed in the lot description. Additional study findings show that over the past 10 years, consistent frequency of BQA mentions have been included in the lot descriptions of cattle selling via video auctions. Even without documentation of a premium in the past, the results imply that over time many producers have proactively chosen to highlight and emphasize their participation in BQA when marketing their cattle.
"By sharing the BQA status of the owner or manager of a set of cattle, the buyer can access information that is generally otherwise difficult to find in traditional marketing channels," Ahola said. "This was a big reason for us to conduct the study, as it became clear that data on sellers' BQA status were available on a large number of cattle sold through video auctions as well as other traits associated with the cattle. This information affected the ultimate selling price of the cattle."
For more information on the study or to complete online BQA training, click here, or to hear Ahola speak more about the value BQA certification adds to producers' bottom lines, listen to today's Beef Buzz, below.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
Hear Ahola speak more about the value BQA certification adds to producers' bottom lines, click below
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