Hedonic pricing analysis for semen of dairy bulls in Brazil

Abstract

Dairy farming is an important aspect of the Brazilian agricultural sector. The presence of numerous producers has created a large number of jobs in this field, contributing significantly to the rural economy. Artificial insemination (AI), used as one of the main means of reproduction, is increasingly gaining importance in the genetic improvement of animals. Given this scenario, the semen of bulls has become extremely marketable and an important aspect of the animal industry. This study aims to develop a hedonic model for the price of semen doses of dairy bulls based on the information from the main sellers of the product in the Brazilian market. The main findings reveal that there is an additional premium for proven bulls. Semen doses from Gir bulls proved to be more expensive, and the AI firm ALTA has a discount compared to the other firms. From the characteristics obtained in the tests, there is a premium only for the Predicted Transmitting Ability–Milk (volume). The most valued feature found is the dose being sexed, that is, the dose that guarantees the gestation of a female from its use. Semen doses from dead bulls has proved to be more expensive.