Establishing indices of genetic merit using hedonic pricing: An application to dairy bulls in Alberta

Timothy Richards, Scott R. Jeffrey

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

This study investigates the use of hedonic pricing to identify the value of relevant production and type traits for dairy bulls in Alberta. A hedonic pricing model is estimated that considers semen price as a function of individual production and longevity characteristics for a sample of Holstein bulls. The results suggest that the most important characteristics used by Alberta dairy producers in valuing dairy bulls are milk volume, protein and fat content, general conformation, body capacity and the popularity of the bull. For a given set of such characteristics, the probability that the bull's semen may be in short supply does not significantly affect the value. This methodology may be used to establish a method of forecasting semen prices for newly proven bulls. The valuation procedure may be easily updated and adjusted as producers ' breeding objectives change over time because of the changing economic environment. The results of this analysis suggest that hedonic pricing may be a better method of placing a value on production and type characteristics for dairy bulls than the Lifetime Profit Index currently being used by the Canadian dairy industry.

Original languageEnglish (US)
Pages (from-to)251-264
Number of pages14
JournalCanadian Journal of Agricultural Economics
Volume44
Issue number3
StatePublished - Nov 1996

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dairy bulls
genetic merit
Alberta
Pleasure
Semen
bulls
Costs and Cost Analysis
Dairying
semen
valuation
body conformation
milk
fat
Milk Proteins
breeding
protein
Breeding
methodology
Fats
economics

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)

Cite this

Establishing indices of genetic merit using hedonic pricing : An application to dairy bulls in Alberta. / Richards, Timothy; Jeffrey, Scott R.

In: Canadian Journal of Agricultural Economics, Vol. 44, No. 3, 11.1996, p. 251-264.

Research output: Contribution to journalArticle

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