The use of sexed semen in the dairy industry has grown rapidly. However, high costs and low fertility have limited the use of this potentially valuable tool. This study used simulation to evaluate 160,000 combinations of key variables in 3 spheres of influence related to profit feasibility: (1) market (e.g., milk and calf prices), (2) dairy farm management (e.g., conception rates), and (3) technology (e.g., accuracy of sexing). These influential variables were used to determine the most favorable circumstances in which managers or technicians can effect change. Three distinct scenarios were created to model 3 initiatives that a producer might take with sexed semen: (1) using sexed semen on heifers, (2) using sexed semen on heifers and a fraction of the genetically superior cows, and (3) using sexed semen on heifers and a fraction of the genetically superior cows, and breeding all other cows with beef semen. Due to the large number of management, market, and technology combinations, a response surface and interpretive graphs were created to map the scope of influence for the key variables. Technology variables such as the added cost of sexed semen had relatively little effect on profitability, defined as net present value gain per cow, whereas management variables such as conception rate had a significant effect. Milk price had relatively little effect within each scenario, but was important across scenarios. Profitability was very sensitive to the price of dairy heifer calves, relative to beef and dairy bull calves. Scenarios 1 and 2 added about $50 to $75 per cow in net present value, which ranged from $0 to $200 and from $100 to $300, respectively. Scenario 3 usually was not profitable, primarily because fewer excess dairy replacement heifers were available for sale. Dairy heifer price proved to be the most influential variable, regardless of scenario.

Hay is a major crop, though the market values are not often studied. The purpose of this research is to quantify relative price relationships due to a wide range of measurable hay characteristics of a specific hay auction reflecting supply and demand preferences. A time series data set was developed based on USDA Agricultural Marketing Service (AMS) reporting of the Colorado Centennial Hay Auction 2006 to 2011. All bale characteristics were gleaned from the reports including the number of tonnes offered at auction, hay type, grade, size, year, month, and the number of tonnes offered of a specific hay type, grade, size, year, and month combination. The data set was used to create a hedonic statistical price model for three hay types: alfalfa (Medicago sativa L.), mixed alfalfa/grass, and grass hay. Time trend variables, grade, size, and the number of tonnes offered all proved to significantly impact price. The largest price increases were associated with specific grade size combinations, such as supreme quality small square bales. The biggest price reductions were associated with larger sized bales and lower quality grades. Alfalfa prices were the highest in this auction; the largest price variability was in grass hay. Results are largely applicable to a market area which includes buyers of hay for all types of livestock. Hay producers should carefully consider quality, type of hay (e.g., alfalfa), and bale characteristics in their production decisions.

This presentation provides a descriptive overview of economic and marketing trends and key changes in cattle feeding over the last two decades. The focus will highlight four major areas: aspects of beef demand (domestic and foreign), market-driven carcass characteristics, economically driven producer production trends, and marketing arrangements. The last two decades have brought unique challenges and opportunities to the beef industry through demand changes and production technologies. Consumer diet trends, the rise and fall of saturated fat, and the expansion into the global marketplace have all shaped the beef demand profile. New technologies also have shaped feedlot management and marketing. Over the last two decades, changes have revolutionized fed cattle marketing, rewarding quality through alternative marketing arrangements, especially formula pricing, including grid pricing. Evolutionary changes have been seen in carcass grading characteristics (e.g., Choice/Select price spread) and helped focus production practices to zero in on producing higher-quality beef. Trends at the feedlot such as carcass weights, days on feed, and other productivity measures have also been shaped by in-part by economics. Last, we will offer a few comments on emerging issues and trends.

The dairy industry is constantly changing as new technologies requiring conscious management decisions are introduced. This case study analyzes the profitability of using sexed semen to attain a specific calf crop based on three scenarios. Market, management, and technology variables simulate changing conditions that affect the profitability of using sexed semen. The biggest impacts a producer can have on profitability using sexed semen is to manage their calf crop based on market prices and to employ strong management practices to achieve the best conception rates possible. With these guidelines, Extension can help managers achieve the best results.