Price determinants of beef bulls sold in livestock auctions

ABSTRACT The main objective of this study was to evaluate the effects of phenotypic, genotypic, and auction characteristics that may influence the selling prices of bulls. Data from 1,540 Braford and 1,179 Brangus bulls sold at auctions in the state of Rio Grande do Sul, Brazil, were collected and evaluated individually. Body condition score (BCS), muscularity, frame, foreskin size, presence or absence of horns, and data regarding the auction such as name/venue, event edition, forms of payment, among others, were considered. Information such as weight at the time of sale, scrotal circumference (SC), expected profit differences, selection indexes, and date of birth were collected from the catalogs supplied at the auctions. To obtain the influence of the selected explanatory variables throughout the conditional distribution of bull prices, a quantile regression was used, and the quantiles were established as follows: 10th, 25th, 50th, 75th, and 90th. The buyers of Braford and Brangus bulls valued characteristics such as age, weight, and SC in relation to frame, muscularity, BCS, and foreskin size. In addition, the price behavior at different auctions was positively related to the operation time of the auction in this market and with the reputation of the seller. Regarding genetic variables of Brangus bulls, these had little or no influence on the selling price. There was a positive influence on the weaning index in the 90th quantile and on the final index in the 50th and 75th quantiles. Buyers of synthetic bull breeds at auctions value the phenotypic characteristics of bulls more than they do genetic characteristics, which may not reflect permanent gains in the cattle herd.