The Affect of Animal Gender on Fed Cattle Producer Marketing Behavior

Weekly grid market share by volume for slaughter steers is compared to slaughter heifers. Summary statistics indicate average grid market share for steers (42%) is 27% higher than slaughter heifers (33%). The literature indicates that pregnancy and increased dark cutter incidence associated with heifers relative to steers creates additional financial risk when heifers are sold on a grid. Econometric analysis suggests grid market share is less sensitive to change in market conditions for heifers relative to steers. The empirical evidence is consistent with the supposition that marketing heifers is riskier than marketing steers on a grid. Thus sellers need stronger economic incentives to market heifers on a grid relative to steers.