Calf Price Discounts

– Dr. Andrew Griffith, Assistant Professor, Department of Agricultural and Resource Economics, University of Tennessee

While attending a cattle auction in mid-July I was reminded of the physical characteristics and quality differences influencing the price of cattle. There were cattle of nearly every color. Some of them had little to no gut fill while others could be called full. There were cattle carrying mud on their hide and cattle that were as slick and sharp as they come. Every frame and muscle score was represented. There were some cattle with dairy influence and there were cattle that were at least three-quarter Brahman. There was an animal for everyone at the sale, which seems to be representative of many cow herds.

Anyone who has ever thought the sale barn did them wrong because they did not receive the price they think their cattle deserved should sit at the sale barn and pay attention. A cattle producer can learn a lot about why a certain animal or group of animals received a certain price. Prices are discounted for full, muddy, injured, sick, small frame, light muscled, and cattle that do not match well with cattle in a region.