Study Shows BQA Generates Premiums

August 6, 2019

The results of new research conducted by Colorado State University (CSU) show significant premiums are paid on calves and feeder cattle going through video auctions when Beef Quality Assurance (BQA) is mentioned in the lot description. CSU researchers found an average premium of $16.80 per head was paid when BQA was listed.

Partnering with Western Video Market, CSU reviewed data from 8,815 lot records of steers and heifers sold in nine western states from 2010 through 2017. While the BQA premium was constant on a per head basis, it implied bigger premiums for lighter cattle and smaller premiums for heavier lots. For example, the premium was $3.73/cwt. for calves weighing 450 lbs. and $2.24/cwt. on feeders weighing 750 lbs.

CSU Animal Science Professor Jason Ahola said the value of a seller being BQA-certified can be captured only when information is shared between seller and buyer