Errors in slaughter steer and heifer prices

A study was conducted to analyze variations between the value of live cattle and the meat produced from those cattle. By tracking value for each carcass, it is possible to make a direct linkage between actual value of carcasses and the value attached to the animal that produced the carcasses. The primary factor affecting the valuation of each carcass is the quantity of meat actually produced. The main findings are: 1. Prices for steers tend to be high relative to the value of their meat yields. 2. Purchase values tend to be independent of final yield grade, and meat values are closely related to yield grade. 3. Heavier heifers tend to be discounted when purchased, even though carcasses produced from these animals tend to have higher price values.