Cattle Auction Research Articles

Quality of human-animal interactions during beef cattle auctions in Panama

This study aimed to determine the quality of human-animal interactions during cattle auctions in Panama and to assess the relationship between cattle reactivity, value paid, and time spent on commercialization. Data were recorded by watching video records of 4531 individual cattle sold in the main Panamanian auctions. Cattle reactivity was assessed by one previously trained observer when the animals entered the box where they were exposed for sale, assigning one of three scores: 1 = calm, 2 = reactive, and 3 = very reactive. Human-animal interactions were assessed using a binary score to assess the occurrence of hitting (1) or not (0) during commercialization. When cattle were hit to stimulate movement, their reactivity was assessed again to determine whether hitting altered their behavior. The value paid (USD/kg of live weight), and the time spent on commercialization (s) of each animal were also recorded in a subsample of 704 animals. Cattle reactivity, genetic group, animal category, auction location and phase of commercialization influenced the occurrence of hits (p<0.05). Hitting altered cattle reactivity (p<0.001); 95 % of the animals scored calm when they entered the auction box, dropped to 85 % after being hit. There was a significant effect of the reactivity score (p<0.05), genetic group (p=0.01), location (p<0.001) and auction phase (p=0.002) on the number of hits received by the cattle when inside the auction box. The median value paid for very reactive cattle tended to be higher than for calm cattle (1.85 vs 1.82 USD/kg; respectively; p=0.06). There were no differences in the time spent on commercialization according to cattle reactivity (p>0.05). In conclusion, cattle reactivity, and auction phase, in addition to other factors such as genetic group, animal category, and auction location, affected the frequency of negative human-animal interactions during commercialization. Cattle reactivity tended to affect the price paid per head of cattle but not the time spent in marketing.

Factors influencing Community Participation in Planning and Implementing Agricultural Development Projects: A Case of the Matongoro Cattle auction project in Kongwa district, Tanzania

In Tanzania, different community development projects in various sectors including the agriculture sector have been formulated and implemented following a bottom-up approach. However, in many cases, the impact of such projects has not been significant due to various reasons including poor participation of the targeted population in the process. This study intended to investigate the factors influencing community participation and its levels using the case of the Matongoro cattle auction project. Data were collected from a sample of 150 respondents using respondent questionnaires, key informant interviews, and focus group discussions. Descriptive statistics, which generated percentages and frequencies and a binary logistic regression model were used for data analysis. Study findings show that the dominant narrative on the bottom- approach to enhancing participation; nearly 90% of respondents indicated a low level of participation. The critical factors which were found to significantly influence community participation projects at p&gt;0.05 were income level, number of cattle owned, age, awareness, experience, and sex. The study recommends that the government should design ways to increase local community participation throughout conceptualisation, formulation, and implementation to ensure the success and sustainability of these agricultural projects.

Are declining auction prices a result of bidder behavior or auctioneer strategy? Evidence from cattle auctions

AbstractWe test the ability of three previously advanced mechanisms to generate the declining price anomaly frequently observed in sequential auctions by employing a Bayesian hierarchical model framework to simulate heterogeneous bidders in sequential cattle auctions. One hypothesis is that declining prices are due to convergence in the buyers' bidding functions as bidders learn from each other. The second posits that as bidders fulfill their demand by winning earlier lots, the decrease in aggregate demand causes prices to fall. The third is the auction designer's strategic arrangement of lots. Results show the most plausible mechanism to be a strategic ordering of the lots.

Hotspots of vulnerability and disruption in food value chains during COVID-19 in South Africa: industry- and firm-level “pivoting” in response

ABSTRACT We use a primary data set from a survey of medium and large firms and farms in the beef, citrus, and maize value chains in South Africa during March-June 2020, the early and late phases of the initial COVID-19 lockdowns. We have five main findings. (1) The initial lockdown regulations declared as “essential” the product (vertical) value chains but left as “inessential” the important “lateral” value chains delivering labour, materials, and logistics to the segments of the vertical value chains. This hurt the three vertical value chains as constraints in the laterals choked key segments of the verticals. (2) Vulnerability of the whole value chain emanated from vulnerability to shocks of critical “hotspot” linchpin segments (such as livestock auctions) or infrastructure (such as at ports). (3) Collective, industry-level “pivoting” was crucial both to organize the private sector response and to interact with government to course-correct on COVID-19 policies. (4) Responses to pre-COVID-19 challenges (such as drought and international phytosanitary rule changes) had prepared the beef and citrus value chain actors to respond collectively to the pandemic challenges. (5) Individual firm- and segment-level “pivoting” was also crucial for resilience, such as cattle auctions going on-line with the help of e-commerce firms.

A Case Study of Cattle Prices in Nicaragua

Latin America has become the leading region for beef and poultry exports worldwide (FAO, 2020a). We conduct a case study of cattle prices in Nicaragua, the leading meat producing country in Central America.1 Using data on futures on feeder cattle prices from the Chicago Mercantile Exchange Group (CME) supplemented with a two-year data on 2,520 sales transactions from 99 auctions from the Nicaraguan Cattle Auction (NCA), this study conducts a hedonic price analysis for cattle auctioned in Nicaragua. In particular, the study empirically identifies factors affecting price differentials for cattle and examines their correlation with the futures market. Our results show that weight, lot size, and class are among statistically significant factors impacting cattle auction prices while their correlation with the futures market is significant for six out of the eight futures variables corresponding to the contract months at the CME. The results of the study help Nicaraguan cattle buyers and sellers understand information from the futures market to predict price differences and reduce price risk and uncertainty.

Assessing the Role of Ordering in Sequential English Auctions – Evidence from the Online Western Video Market Auction

In a sequential English auction, where multiple homogenous objects are offered, it is often found that the price tends to decrease over the course of the auction, which is referred to as the “declining price anomaly”. This article studies the price trend in a sequential online live cattle auction. Motivated by the fact that in an English first‐price auction, the winning price is the maximum among all the bids offered, we examined the existence of the declining price anomaly by introducing the Generalized Extreme Value theory framework, and nesting it within a hedonic regression, where the price of cattle relates to the market values for cattle attributes. Empirical results indicate that the unit price difference between the first and the last lot sold ranges from $7.82 to $2.31, depending on the average animal weight in that lot. On average, the unit price of a stocker cattle lot sold in the last position of a typical sale is $5/cwt (or 3%) less than if it was sold in the first place, regardless of the scale of the sale and keeping all other factors constant. Based on the theoretical framework developed by Brendstrup and Paarsch (2006), we find that the buyer's maximum valuation on the subsequent object actually declines as he wins more objects, which provides a plausible explanation for the declining prices anomaly in sequential auctions.

Seroprevalence of bovine Anaplasmosis in Georgia.

Anecdotally, Veterinary Feed Directive prescriptions in many states in the southeastern United States (U.S.) are written most often for treatment and prevention of bovine anaplasmosis (BA). This tick-borne disease of cattle caused by Anaplasma marginale remains an economically important disease in U.S. However, there are no prevalence estimates of this disease in Georgia (GA). Thus, this study was aimed at determining the seroprevalence of BA in GA. In an active cull beef cow screening for BA, 293 beef cows were sampled from one cattle auction barn and one slaughterhouse between May 2013 and September 2014. These cows originated from 6 of 159 counties in GA. The top 3 counties sampled were Gordon (241 samples), Carroll (25 samples), and Emanuel (12 samples). Of the 293 sampled beef cows, 13 were positive and 280 were negative for BA. Hence, with competitive ELISA, the overall observed apparent seroprevalence of BA in GA was 4.44% (95% CI: 2.61-7.44%) while the estimated true seroprevalence was 2.62% (95% CI: 5.2-5.87%). The top 2 prevalent counties were Carroll and Gordon with apparent seroprevalence of 8% (95% CI: 2.22-24.97) and 4.78% (95% CI: 2.69-8.36), respectively and estimated true seroprevalence of 6.45% (95% CI: 0-25.37) and 2.99% (95% CI: 0.54-6.89), respectively. Although not significant, counties with specimen submissions for BA testing had a greater cattle population and number of cattle farms than counties without specimen submissions. Nevertheless, future prevention and control measures for BA should out of caution target counties with ≥5000 total cattle heads.

ABOUT ZEBUS AND ZEBUZEIROS: VALUE AND PRICE, INFLUENCES AND SUBSTANCES IN ELITE CATTLE AUCTIONS

Abstract Brazil is one of the largest producers of beef. It also produces and markets the most expensive zebus (Bos taurus indicus) in the world. In sumptuous auctions, which offer an abundant amount of food and drink to the participants, elite cattle are sold for millionaire prices. This article, aims to analyse this market through an ethnography of a cattle auction in the state of Minas Gerais: the set of exchanges that produce race and pedigree, value, and reputations and the socdes and substances that link men and cattle.

A Note on First-Price Sealed-Bid Cattle Auctions in the Presence of Captive Supplies

The authors present an analytical model of a first-price sealed-bid cattle auction in which a spot and coordinated markets are interconnected. The model reveals that the conventional wisdom that market coordination negatively affects the bid price in the spot market is an oversimplification. The relationships between key market variables impact bids and bid shading in complex ways. While captive supplies can lead to lower spot prices, the price reductions do not necessarily stem from an increase in market power due to contracting. The model emphasizes the importance of several variables for future empirical studies.

Current factors affecting feeder cattle pricing in Kansas and Missouri cattle markets

Today's tough economic environment for cattle producers makes each decision critically important, and increased knowledge of the link between pricing and genetic, management, and marketing decisions can increase an operation's sustainability and profitability. Cow-calf producers and cattle feeders have long been interested in the impact of various physical and market characteristics on feeder cattle and calf prices. As demonstrated in many previous studies, significant relationships exist between feeder cattle prices and their physical and market characteristics. Weight, lot size, health, condition, fill, muscling, frame size, breed, time of sale, and horn status significantly affect feeder cattle auction prices. Historically, significant premiums and discounts have been associated with these particular feeder cattle physical characteristics. The purpose of this study was to gain knowledge of the current link between market pricing and genetic, management, and marketing decisions. Findings from this research will provide updated information regarding how the myriad of industry changes since the 1980s and 1990s has affected the characteristics that influence feeder cattle and calf prices.

Prevalence of digital dermatitis in first lactation cows assessed at breeding cattle auctions

The prevalence of digital dermatitis (DD) in first lactation cows (FLCs) presented at 10 breeding cattle auctions was determined in a single auction centre in Austria over a period of 14 months. At each auction, FLCs were selected randomly for claw examination from the monthly auction catalogue. After obtaining owner consent, the hindclaws were examined in a walk-in crush. The type of lesion (M1-M4) and the diameter of DD lesions together with claw horn lesions and the trimming status of the claws were evaluated. From a total of 1110 FLCs registered for the ten auctions, 399 (36%) were randomly chosen for examination and 199 FLCs (17.9%) could be defined. In 63 cows (15.7%), the owners refused consent. A total of 24 FLCs were found to have DD lesions on one or both hindlimbs, resulting in a DD prevalence of 12.1%. The size of lesions ranged from 0.5-3 cm in diameter. No influence of environmental factors (such as season or housing) on the prevalence of DD could be found. In 30/199 (15.1%) of FLCs examined, claw horn lesions such as double sole, white line disease and sole ulcer were observed, but both claw horn and DD lesions were seen in only three cows. Potential buyers at auctions should be aware of both conditions, as the 12.1% prevalence of DD and the 15.1% prevalence of claw horn lesions in FLCs are considerable. Critical evaluation of claw health and DD is essential when purchasing breeding cattle.

Bidding behavior in sequential cattle auctions

This paper studies the institutional characteristics of sequential cattle auctions and their effects on prices. It examines the effects of the order of sale according to quality, secret reserve prices, bidders' multi-unit demands and certain characteristics of the bidders. Theory predicts declining prices when sellers are allowed to reject the outcome of the auction, and increasing prices when bidders demand more than one unit. I find evidence that observed declining prices are caused by the order of sale according to quality and the secret reserve prices. I also find that bidders consider the strategic effect of sequential auctions and multi-unit demand.

The Value of Third-Party Certification of Preconditioning Claims at Iowa Feeder Cattle Auctions

After controlling a variety of feeder cattle characteristics and market and sale conditions in Iowa feeder auctions, the price premiums for preconditioning claims (vaccinations and minimum 30 days of weaning) with and without third-party certification (TPC) are estimated as $6.12/cwt and $3.35/cwt, respectively. These premiums differ statistically (p &lt; 0.0001), and their difference exceeds the average participation cost of TPC ($l/cwt). This indicates that TPC is valued in the market to credibly signal preconditioning investment under asymmetric information.

Exploring the role of auction markets in cattle movements within Great Britain

Within Great Britain cattle are often traded at regional markets, of which there are approximately 200 located throughout England, Scotland and Wales. The movement of animals through markets was important in the spread of foot-and-mouth disease (FMD) virus during the 2001 GB outbreak. Here, we describe the movements of cattle to and from markets for 2002–2004 and, using social network analysis, we construct networks based on these movements. In 2002, 56,227 animal holdings (AH) sent cattle to 222 cattle auction markets, compared to 58,476 AH and 187 auction markets in 2004. Auction markets vary considerably in their trading with AH. The majority of markets received animals from less than 50 AH, but one received animals from as many as 6155 AH during a year. The distances travelled between origin AH and destination AH when cattle move “directly” were found to be significantly shorter compared to distances between origin and destination AH where the movement occurred via a market. However, the vast majority of distances moved, for both types of movements, were less than 50 km. Some auction markets appear as highly connected premises within the contact network and are associated with high betweenness scores. However AH also occupy positions central to the contact network. The variation in the characteristics and role of individual markets within the contact network suggests important differences in risk of disease transmission associated with each market. Inclusion of network parameters, when considering the risk associated with moving cattle through auction markets may enhance the development of effective targeted disease control strategies.

Asymmetric information in cattle auctions: the problem of revaccinations

AbstractWe analyze the problem of asymmetric information between buyers and sellers in cattle auctions, using the problem of revaccinations as the point of departure. We present a simple model to show that if buyers do not know and cannot verify whether sellers have vaccinated their animals, then they may consider revaccination. Revaccination is only a part of the broader problem of information asymmetry that includes other quality issues and costs that can be saved, thereby affecting the welfare of both buyers and sellers. We consider structural characteristics of ranching, traditions, and consumers' preferences as well as proposals regarding third‐party certification to argue that the problem of asymmetric information in cattle auctions is a persistent one. We also argue for a comprehensive empirical study of the incidence and impacts of buyer revaccination.

Asymmetric Information in Cattle Auction: The Problem of Revaccinations

The paper analyzes the problem of asymmetric information between buyers and sellers in cattle auctions. An illustration is made regarding the vaccinations that the animals receive. Buyers do not know and cannot verify if sellers have vaccinated their animals forcing them to consider revaccination. Revaccination is only a part of the broader problem of information asymmetry that includes other quality issues and costs that can be saved, thereby increasing the welfare of both buyers and sellers. Structural characteristics of ranching, traditions and consumers' preferences are taken into account and a wider approach is attempted to explain the persistence of the problem in light of potential institutional solutions. We argue for a comprehensive empirical study of the incidence and impacts of buyer revaccination.

A note on hair whorl position and cattle temperament in the auction ring

The objective of this study was to further describe the relationships between facial hair whorls and temperament in cattle. Cattle ( n=1636) from six commercial cattle auctions in Colorado and Texas were observed. Whorl location was classified according to lateral position (left, right, or middle) and height (high: above the top of the eye, middle: at eye level, low: below the bottom of the eye). A 4-point temperament score was used to rate each animal while it was in the auction ring. Cattle with a score of 1 remained calm and stood still or walked around, and those with a score of 4 were highly agitated and hit the ring fence, walls, partitions, or people with its head. The cattle observed were 75% Bos taurus beef breeds, 21% Holstein dairy cattle, 3% Bos indicus beef breeds, and 1% non-Holstein dairy breeds. Ten percent of cattle surveyed had no facial hair whorl, while 86% had a single spiral hair whorl, of which 47% had middle–middle whorl placement. Animals with a high whorl position or no hair whorl had higher temperament scores ( P=0.01). Cattle with low whorls were more likely to have greater lateral displacement of whorls off of the centerline than cattle with high or middle whorls ( P<0.01). Abnormally shaped whorls were more common on cattle with low whorls ( P<0.01) and on cattle with lateral whorls located off of the centerline ( P<0.01). Cattle with hair whorls on the centerline had more variable temperament scores ( P=0.04). Beef cattle had more abnormal whorls than Holsteins ( P<0.01). Temperament scores showed that Holsteins were calmer than beef cattle ( P<0.01). Facial hair whorls in cattle may be a useful management tool in assessing which animals may become disturbed in novel environments.

Calibration of a model of declining prices in cattle auctions

Using data from dairy cattle auctions plus independent appraisals of the cattle sold, this paper is able to verify the existence of the “declining price anomaly”: prices decline over the course of the auction, with the main decline occurring towards the end of the day. We show that the data are consistent with a simple model of sequential auctions of goods with independent values, and examine distributions which replicate the important features of the data. The crucial feature driving the price declines in the model is a limited capacity for purchases by the participants in the auction, which in turn decreases competition for the final units in the auction.

Mapping Market Areas Using Nonparametric Smoothing

A new method is proposed to map firms' principal market areas using shipment data. The new method is a general one which could prove just as useful in mapping the incidence of disease as in mapping market areas. This method is applied to agricultural data for feeder cattle sales at a video cattle auction. Transportation costs appear to be the main determinant of market area boundaries, but there are many cases where transportation costs alone cannot explain the market areas found. The size and shape of market areas for feeder cattle buyers are large, irregularly shaped, and extensively overlapping.

Price impacts of concentration, timing, and product characteristics in a feeder cattle video auction

This research investigates the differential effect of timing and product characteristic based measures of buyer concentration on the selling price of auctioned feeder cattle. Empirical results suggest that the fundamental dynamic price generation mechanism in feeder cattle auctions is affected by measures of buyer concentration. © 1996 John Wiley & Sons, Inc.