Economic impact of value based marketing of fed cattle on the beef cow-calf retained ownership decision

Cow-calf producers may maintain calf ownership beyond the traditional sale point at weaning. Finished cattle can be marketed in a value based marketing system that assigns worth to individuals based on carcass characteristics. Retained ownership offers potential benefits, yet is associated with increased risk due to price and performance uncertainty. The decision to retain ownership should be based on an understanding of current industry structure, potential risks, and decision maker preferences.; Two studies were performed to evaluate the cow-calf retained ownership decision. The first study evaluates how the value of feeder cattle as determined by carcass grid pricing differs from market value at public auction. The second simulation uses post-weaning performance data to evaluate risks faced by the cow-calf producer when the calves are marketed in a value based marketing system. The results indicate that farm-level performance information can be managed to provide valuable information regarding the retained ownership decision.