An Economic Assessment of Test Performance Measures and Purebred Boar Prices

Abstract

The value placed upon production characteristics examined at Tennessee boar testing stations was analyzed using test station results and accompanying auction prices of 746 boars from 1980 through 1986. The characteristics in question were average daily gain, feed efficiency, average back fat, and a performance index. Results showed that these four performance measures explained less than 50% of the variation in boar prices. Average daily gain and the performance index appeared to exhibit the largest percentage increase upon the price of boars. While the performance index was a major indicator of price differences existing between boars, the index (a cardinal measure) never provided additional explanatory power over that contributed by the order of sale (an ordinal measure) which was determined from the index order. The “top selling” boars of each sale appeared to be judged on a different set of criteria than the other boars. This was captured by adding a dummy variable to the equations with the resulting R2 values increased to around 0.57. Developing individual equations for each of the four main hog breeds represented in the test did little to increase the explanatory power of the equations. When the breeder effect was accounted for by developing equations for several individual breeders, eight of the 10 estimated equations increased in both R2 and F values over the composite equations. With several of the performance traits proving significant in determining price, there appears to be sufficient evidence to indicate that purebred breeders have incentive to further develop boars with superior performance traits.