This study introduces a data-driven benchmarking method to assess the relative price and profit efficiencies of cattle auction sales. Transaction inefficiencies represent the divergence between observed sales and their corresponding maximum feasible value. Data envelopment analysis is used to assess market efficiencies and to identify the optimal array of animal characteristics based on peer comparisons. In Texas, about half of the evaluated transactions were inefficient. Furthermore, by modifying some of the observed attributes, sales prices could increase by 23% and profits improve by 74%. Efficiency results can be used to develop effective value-added management practices and educational programs.
