Using Genetic Testing to Improve Fed Cattle Marketing Decisions

We estimate the value of using genetic information in making fed cattle marketing decisions. Our results identified efficiency gains from sorting cattle into marketing groups, including more accurate optimal days-on-feed and reduced variability of returns to cattle feeding. Selectively marketing cattle based on genetic information increased expected profit by $1-$15/head depending on how a producer currently markets cattle, the grid structure, and risk preferences. Although values of genetic information were generally higher than those reported in previous research, they were still not enough to offset the current cost of genetic testing ($40/head)