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NBCEC Brown NBCEC Brown Bagger:Bagger:Economic Selection Economic Selection IndexIndex
Wade ShaferAmerican Simmental Association
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Thou Shalt Select Superior Thou Shalt Select Superior Sires!Sires!
Second Second Commandment of Commandment of
Beef Cattle BreedingBeef Cattle Breeding
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EPDsEPDs Anything ElseAnything Else
Use Use EPDs!EPDs!
11stst Step: Predicting Step: Predicting Genetic LevelGenetic Level
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Where Do We Go From Where Do We Go From Here?Here?
MCE:4
CE:2
REA: .3
BKF: .01
MBL: .2
YG: .2
MW: 25
WBSF: -.12
STAY: 18
WW: 35
YW: 68
MLK: 10
TM: 27 CW:
20
BW: 3.2
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Charting a Direction. . Charting a Direction. . . .
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Typical Direction:Typical Direction:
0
20
40
60
80
100
120
1975 1980 1985 1990 1995 2000 2005 2010
OU
TPU
T
Output
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More Desirable More Desirable Direction:Direction:
0
20
40
60
80
100
120
1975 1980 1985 1990 1995 2000 2005 2010
PRO
FIT
Profit
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How Do We Select for Profit?How Do We Select for Profit?
Measure It!!!!
Profit = $Output - Profit = $Output - $Input$Input
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Economic Selection Economic Selection IndexIndex
Lanoy Hazel, 1943
Measuring ProfitMeasuring ProfitProfit = $Output - $Input
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(Output Traits)
(Input Traits)-=Replacement Rate
Cowherd IntakeFeedlot Intake
Calf SurvivalWeaning WeightCarcass WeightYield GradeMarblingSalvage Weight
(Prices)
(Costs)
Measuring ProfitMeasuring ProfitProfit = $Output - $Input
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Price & Cost Assumptions:
Salvage price: $.45/lb Hay: $.0325/lb Pasture: $25/ac/yr Feed; fixed costs:• Phase 1: $.036/lb; $.51/d• Phase 2: $.039/lb; $.80/d• Phase 3: $.067/lb; $.80/d Carcass prices:• Base: $121/cwt• < 550 lb: - $15/cwt• > 950 lb: - $7/cwt• > 1000 lb: - $17.50/cwt• Prime: + $8.00/cwt• High Choice: + $3.50/cwt• Choice: + $1.50/cwt• Select: - $11.00/cwt• Standard: - $20.00/cwt• YG 1: + $4.00/cwt• YG 2: + $2.00/cwt• YG 3: $0.00/cwt• YG 4: - $15.00/cwt• YG 5: - $20.00/cwt
Biological AssumptionsWeaning weight: 550 lbFeedlot gain; intake:•Phase 1 (80 d): 2.51 lb/d; 26.86 lb/d•Phase 2 (50 d): 2.92 lb/d; 21.9 lb/d•Phase 3 (100 d): 3.81 lb/d;26.67 lb/dCow size: 1250 lbMilk production: 5283 lb/lactationPregnancy rate: 84%Dystocia heifers (direct): 20%Dystocia heifers (maternal): 20%Calf survival: 96%Harvest weight: 1277.8 lbDressing: 62.9%Carcass weight: 803.7 lbMarbling score: 5.14Yield grade: 2.8
MeasurinMeasuring Profitg Profit
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High High YieldingYielding
YG3$121
YG2$123
YG2$123
YG3$121
YG4$106
YG4$106
YG5$101
YG5$101
Low Low YieldingYielding
YG4$106
YG1$125
YG1$125
Measuring Profit: Measuring Profit: Accounting for Biological x Accounting for Biological x Economic InteractionEconomic Interaction
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All-Purpose Index (API)a
Terminal Index (TI)a
Bred to all-aged femalesRetain replacements
Bred to mature cowsNo replacements retained
aGeneral Assumptions: Sires mated to Angus cow herdIntegrated system selling on end product valuePrices/costs based on CattleFax prediction models
ASA’s Economic ASA’s Economic IndexesIndexes
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5 Year 5 Year AssessmentAssessment
Indexes have been integrated more quickly than any technology we have ever introduced
Indexes have the potential to substantially increase the integration level of animal breeding technology
Indexes are Indexes are Highly Highly Marketable!Marketable!
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sexyworksimple
Keys to Keys to MarketabilityMarketability
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Prices and costs tend to maintain equilibrium over timeTend to be robust even when prices and costs not in equilibrium
Producer Producer Concerns:Concerns:Economic parameters are unpredictable:
Validated in other species Straightforward accounting process… methodology is
validated Bottom line… high probability of being more effective
than current “seat-of-the-pants” approach
One size fits all… doesn’t fit me:Population-wide indexes must necessarily cover entire production systemFew producers have data necessary to parameterize “customized” indexesStrong correlations between “customized” indexesCustomized indexes aren’t as marketable…reducing integration
Indexes aren’t “validated”: