Inherent auction factors that affect the selling price of calves

ABSTRACT This study was performed to determine and quantify the inherent auction factors that affect the selling price of beef calves (weanlings - from six to nine months old). Data on the selling price, location and month of the auction, genetic group, lot size live weight, and sex of animals were collected in 148 auctions from January 2004 to December 2014. A total of 4,312 lots corresponding to 48,588 calves were classified into seven genetic groups according to their phenotypic characteristics. The values were deflated using the General Price index (IGP-DI) inflation index and met the parametric assumptions. The selling price was standardized by the yearly median, assuming that its value corresponds to 100%, and the other values varied in their function. Path analysis quantified the direct and indirect effects of the variables taken as explanatory of the selling price, followed by regression analysis and Tukey test. Overall, the direct effect of the average weight was the highest (0.7), followed by sex (0.38). The smallest direct effect was the genetic group (−0.075). There was a growing exponential relationship between average weight of the lot and selling price and a decreasing ratio between price per kilo and the average weight of the lot (−0.0003 percentage points per kilogram). Males were generally 15.7% more valued than females. The British × Zebuine crossbreed was the most valued breed, followed by the British breed (8.9 and 3.6%, respectively). The highest premium was in November, followed by February (9.57 and 8.84%, respectively, compared with median year). The selling price increases linearly by 0.3284 percentage points for each additional animal in the lot. The average weight of the lot was found to be the most important variable in the formation of the selling price, followed by the sex of the animals.