Factors affecting economics of using sexed semen in dairy cattle

Abstract

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.

Heifer fertility and carry over consequences for life time production in dairy and beef cattle

“…McCullock et al (2013) assessed the economic benefits of three scenarios using sexed semen on heifers alone (which have intrinsically better fertility than cows) or also including some higher genetic merit cows. They took the likely success of AI at 70% of that achievable using unsexed semen.…”

Applications and cost benefits of sexed semen in pasture-based dairy production systems

“…This provides dairy farmers with the opportunity to increase revenues from the sale of calves for meat production, by breeding the remainder of the herd with semen from beef sires (McCullock et al, 2013). Suitable beef sires would generate progeny that are easy calving with short gestation length (SGL).…”

“…These are: (i) the price premium of sexed semen compared with conventional; and (ii) the reduction in fertility performance of sexed semen compared with conventional. A number of authors have examined the economic effects of sexed semen use in a variety of scenarios, both in year-round (Seidel, 2003;Olynk and Wolf, 2007;McCullock et al, 2013) and seasonal production systems (McMillan and Newman, 2011;Hutchinson et al, 2013a and2013b). McCullock et al (2013) described the economic advantage of using sexed semen as a function of interactions among three spheres of influence: the market environment, management practices and technological efficiency.…”

Invited review: Reproductive and genomic technologies to optimize breeding strategies for genetic progress in dairy cattle

“…With sexed semen, McCullock et al (2013) found profitability was not largely affected by added costs of sexed semen, but more so by management variables like conception rate and the market environment. Genomic engineering and gene editing are both currently afflicted with high costs and relatively poor efficiencies in producing modified, viable young.…”