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Published on: August 8, 2017
Economics of stocker production
1Department of Agricultural Economics, Division of Agricultural Sciences and Natural Resources, Oklahoma State University, Stillwater, OK 74078, USA. dpeel@okstate.edu
Summary
Economic signals guide the beef cattle industry, influencing stocker production levels and timing. Profitable stocker operations require matching market conditions with effective animal and business management strategies.
Area of Science:
- Agricultural Economics
- Animal Science
Background:
- The beef cattle industry responds to market dynamics, necessitating adaptive production strategies.
- Stocker production profitability hinges on aligning economic conditions with management practices.
Purpose of the Study:
- To analyze the economic signals driving beef stocker production.
- To understand how market conditions influence production decisions.
Main Methods:
- Analysis of the feeder cattle price-weight relationship.
- Examination of market signals influencing production levels, type, and timing.
Main Results:
- The feeder cattle price-weight relation is a key driver of stocker production economics.
- Dynamic values of gain direct producers in adjusting stocker operations.
Conclusions:
- Effective stocker production requires integrating economic analysis with sound animal and business management.
- Producers must adapt stocker operations to changing market conditions for sustained profitability.
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