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Micro economic approaches to technical change in the Canadian beef cattle industry: two studies of crossbreeding as an innovation

University of British Columbia

This dissertation investigates the process of genetic-based technical change in the Canadian beef cattle industry. Specifically, I analyze the effect of market forces on three processes necessary for genetic-based technological change: expansion of the genetic pool, inbreeding of divergent genetic strains to increase the probability of desired heritable properties in a pure breeding strain, and crossing of pure breeding strains to take advantage of hybrid vigour. This is accomplished through two studies. The first study, examines the expansion of the genetic pool through the establishment of purebred breeders of cattle breeds imported since 1965. A model is developed to explain the location of breeders within a time framework. The model was tested across breeds and over time. The process of breeder location appears consistent for the various breeds and can help explain the dates of availability of new breeds of cattle in different areas of the country. The second study examines the ongoing process of genetic technical change through the improvement and sale of breeding stock. A model is developed explicitly using the "characteristics" approach to production with the phenotypic characteristics of breeding bulls as arguments in a production function. Prices of individual bulls and values for the characteristics were collected at bull sales and shadow values for the characteristics estimated. These shadow values were used to predict characteristics which should be emphasized in herd improvement, and the prediction was compared to observed practices. The use of the characteristic: approach led to the identification of a different production function for the traditional straightbred technology and the new crossbred technology. Market forces seem to regulate the process of technological change and promote breed improvement. The major constraint to availability appears to be the limitation on imports and the biological limits to increasing the stock of purebred females.

Text

2010-03-30

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http://hdl.handle.net/2429/23077

Economics

University of British Columbia

Graduate