Value of Minimum Sire Accuracy Traits in Bred Heifer Price

The product life cycle of the new value added marketing strategy that a quality heifer program created in adding, a new product (heifers with additional value characteristics) is explored. The new product that will be examined is related to the Show-Me Select Heifer Replacement program. The Tier II program has essentially created a new product (higher quality bred heifers) by using minimum EPD accuracies for calving ease along with expected calf and carcass performance measurements. The hedonic study shows that that the Tier II heifers receive a premium compared to traditional Show-Me-Select heifers. The first year Tier II heifers came on the market in 2008 they received a discount of $24 as compared to regular Show-Me-Select Heifers. However, the following year the Tier II heifers received a premium of $138 while dropping to a premium of $46 in 2010. It appears since the Tier II program is in an infancy stage where premium values are still being determined.