Economic assessment of the impact of sire breed and dam weight on the beef industry

This study examines the potential for misaligned profit incentives between the cow-calf and feedlot sectors by evaluating the effects of mature cow size and breed of sire on economic returns. This study utilizes four years of data collected from birth to rail by the Oklahoma State University Range Cow Research Center. The relationship between phenotypic traits (birth weight, 205-day weaning weight, feedlot entry weight, feedlot exit weight, average daily gain, gain to feed, hot carcass weight, yield grade, fat thickness, ribeye area, marbling score) that drive profits for each sector were estimated with respect to mature cow size and sire breed. Profitability was simulated for both cow-calf and feedlot sectors. Results indicate that in this study cow-calf producers may achieve higher returns with lighter weight dams but face no difference in profits by sire breed. Feedlots may find higher returns purchasing calves out of smaller dams as they have a lower total cost of purchase but similar post-weaning growth when compared to larger calves from larger dams. Given the sires available in the data, Charolais- and Hereford-sired calves achieved higher returns regardless of dam size when compared to Angus-sired calves due to lower total associated costs.