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Structural change in feedlot cattle death loss rates.
Mark Buda1, Kellie Curry Raper2, John Michael Riley2
1Department of Agribusiness and Bioresource Economics, Faculty of Agriculture, Universiti Putra Malaysia, Serdang, Selangor, Malaysia.
Cattle feedlot death loss rates have increased over time, with a significant structural shift observed between December 2000 and September 2010. This trend impacts feedlot profitability and warrants further investigation into contributing factors.
Area of Science:
- Animal Science
- Agricultural Economics
- Statistical Modeling
Background:
- Industry reports suggest rising cattle feedlot death loss rates.
- Increased death loss negatively impacts feedlot operational costs and profitability.
Purpose of the Study:
- To determine if cattle feedlot death loss rates have changed over time.
- To analyze the nature of any structural changes in death loss rates.
- To identify potential catalysts for observed changes in death loss.
Main Methods:
- Utilized Kansas Feedlot Performance and Feed Cost Summary data (1992-2017).
- Modeled death loss rate using feeder cattle weight, days on feed, time, and seasonality.
- Applied structural change tests (CUSUM, CUSUMSQ, Bai and Perron) to identify breaks.
Main Results:
- Structural breaks, both systematic and abrupt, were detected in death loss rates.
- Days on feed significantly positively influenced death loss.
- A significant positive structural shift in death loss was identified from December 2000 to September 2010, with higher variance during this period.
Conclusions:
- Statistical evidence confirms changes in the structure of cattle feedlot death loss rates.
- Systematic changes may be linked to evolving feeding rations and technologies.
- Abrupt changes could be associated with events like extreme weather or specific treatment protocols.
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