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Abstract
The cattle industry batch markets animals in pens. Because of this, animals within any one
pen can be both underfed and overfed. Thus, there is a production inefficiency associated
with batch marketing. We simulate the value of sorting animals through weight and
ultrasound measurements from original pens into smaller alternative marketing groups.
Sorting exploits the production inefficiency and enables cattle feeding enterprises to avoid
meat quality discounts, capture premiums, more efficiently use feed resources, and increase
returns. The value of sorting is between $15 and $25 per head, with declining marginal
returns as the number of sort groups increases.