Midterm 1 (b)

Question 1

What is pencil shrink?

Answer 1

Condition of sale that estimates the sale weight by reducing the scale weight by some %, usually 2-6%.

Question 2

What is excretory shrink?

Answer 2

Loss of guts and bladder contents, easily replaced.

Question 3

What is tissue shrink?

Answer 3

Too much stress during transfer. It upsets the digestive system and the animals can take 10-30 days to recover.

Question 4

What does FOB the farm mean?

Answer 4

Free on Board, the buyer (feedlot) pays the transport from point of sale to feedlot.

Question 5

List 3 pricing practices for feeder cattle.

Answer 5

per head basis
per lb basis
per lb sliding basis

Question 6

For a cow calf producer what is the main advantage of forward contracting? Disadvantage?

Answer 6

Secure market for animals, protect against market fluctuations.

Penalties if you don’t make contract. May miss out on taking advantage of a price fluctuation.

Question 7

What are 2 sale price methods used for slaughter cattle?

Answer 7

• per head basis
• rail grade—based on carcass weight and grade
• per weight based on estimate of grade.

Question 8

What is the most common method for selling slaughtered cattle?

Answer 8

Sealed bid

Question 9

What are the advantages of forward contracting to the packer?

Answer 9

• Secure a supply for a steady influx of animals
• Negotiate the type of animal
• be selective bidder at auctions

Question 10

What are the advantages of forward contracting to the feedlot?

Answer 10

Secure marketing and protection from fluctuations in price.

Question 11

FOB point of sale?

Answer 11

Free on Board-seller responsible for freight

Question 12

What is the most common reproductive technology?

Answer 12

AI

Question 13

What 2 agricultural sectors use AI the most?

Answer 13

Dairy, Turkey, swine

Question 14

What does AI have a major impact on?

Answer 14

Genetics

Question 15

What to we need to be able to do for AI to be successful?

Answer 15

To detect STANDING HEAT OR ESTROUS done through behaviour or record keeping.

Question 16

What is the value of ESTROUS SYNCHRONIZATION?

Answer 16

Know for AI, when a female is in heat. Leads to a shorter breeding season which leads to a more uniform crop.

Question 17

List 3 things an ESTROUS SYNCHRONIZATION program must do.

Answer 17

1. needs to synchronize the majority of herd or flock
2. easy to administer
3. economical
4. cant decrease fertility

Question 18

What is the value of embryo transfer?

Answer 18

To get more offspring from top producing females.

Question 19

What is the value of embryo transfer?

Answer 19

Get more offspring from TOP PRODUCING FEMALES.

Question 20

Why would sperm sexing be useful in agriculture?

Answer 20

Usually one gender has more value –egg laying hens–only females lay eggs therefore no males to hatch and dispose of.

Question 21

For genetic selection to be successful, what must producers do?

Answer 21

They must keep good records and measure traits accurately.

Question 22

Direct Sales

ADVANTAGES?

Answer 22

• less shrinkage
• no commission
• less transport costs
• you are able to refuse bids

Question 23

Direct Slaes

DISADVANTAGES?

Answer 23

• attracts fewer bidders

- need strong knowledge base

Question 24

Commission Sales -(auction mart)

ADVANTAGES?

Answer 24

• attracts a lot of bidders

- bonded-get paid within 48 hrs

Question 25

Commission Sales

DISADVANTAGES?

Answer 25

• pay commission
• more transport and shrinkage costs
• can’t refuse bids

Question 26

Direct Dales with Commission

ADVANTAGES?

Answer 26

• less transport than commission sales than auction mart

- mix animals to get larger uniform lots

Question 27

Direct Sales with Commission

DISADVANTAGES?

Answer 27

• commission

- site selection, who involved

Question 28

What is the purpose of agriculture?

Answer 28

Satisfaction of needs
Individual can consume, excess can be sold
national food security, export