Estimating the Values of Cattle Characteristics Using an Ordered Probit Model

Abstract

Abstract In this study we evaluate the preferences of cattle producers in Manitoba, Canada, for different cattle characteristics using the conjoint analysis methodology. Preferences are estimated for three different segments of the cattle production system: purebred breeders, commercial cow‐calf producers, and cattle feeders. Data were collected for steers and bulls via a mail survey in 1993. Here we provide relative valuation for the different characteristics by segment of the cattle sector. Evidence is provided that different segments of the cattle sector do not value characteristics the same. For example, purebred breeders have higher preferences for reproduction traits, while feedlot operators give higher values to commercial attributes such as heavy slaughter weight and carcass yield. The different valuations of characteristics across segments of the cattle sector suggest that signals regarding preferences may be noisy. As a result, it might be difficult to design some breed improvement programs to be broadly acceptable, if they have differential benefits to the different segments of producers, when using standard profit‐oriented selection indices.