Is There Gold in Them Thar Crossbreeding Hills? Darrh Bullock University of Kentucky

Is There Gold in Them Is There Gold in Them Thar Crossbreeding Thar Crossbreeding

Hills?Hills?

Darrh Bullock

University of Kentucky

Simple Economics

• Income

•Cost

• Profit = Income - Cost

Income

•Weight

• Price

• Income = Weight * Price

Costs

•Overhead

•Development

•Maintenance

• Production

Economic Considerations

•Cow/Calf Producer

–Calving Ease

–Weaning Weight

–Weaning Rate

–Calf Prices

Economic Considerations

•Cow/Calf Producer

–Longevity/Replacement

–Cow Maintenance

–Cull Cow Prices

–Health Costs

Heterosis Impact on Profitability

•Weaned Weight/Cow Exposed

• Longevity/Replacement Rate

• Feedlot Performance

•Carcass Composition

Literature

• Lifetime input cost per value unit of weaned calf and cull cow output was reduced 6% by use of crossbred cow and 6% more with crossbred calf (Nunez-Dominguez, 1992)

Literature

• Total heterosis for total income was 15% (Lamb and Tess, 1989)•Maternal heterosis for net

profit was nearly $70/cow/yr (Davis et al., 1994)

Crossbreeding Calculator Bullock and Isaacs

Crossbreeding Calculator

Crossbreeding Evaluation Worksheet

Default VariablesNumber of cows in herd 30Percent calves weaned per cows exposed 85%Average weaning weight (LB) 525Weighted average calf price ($/LB) 0.85

Straight Bred Herd IncreasedWn Wt/Hd $/Hd $/Herd

Cow Herd Breed A 0 -$ -$ Bull Breed A

2-Way Cross Herd IncreasedCow Herd Breed A B Wn Wt/Hd $/Hd $/HerdPercent in Herd 87% 13% 22 18.97$ 569$ Percent in Herd 75% 25% 22 18.97$ 569$ Percent in Herd 67% 33% 22 18.97$ 569$ Percent in Herd 50% 50% 22 18.97$ 569$

Bull Breed A

3-Way Cross Herd IncreasedCow Herd Breed A B C Wn Wt/Hd $/Hd $/HerdPercent in Herd 50% 25% 25% 45 37.93$ 1,138$ Percent in Herd 33% 33% 33% 45 37.93$ 1,138$

Bull Breed A

Change In

Change In

Change In

Download this from http://www.nbcec.org/nbcec/bb_IV/xbrd-spreadsh.xls

Economics of Heterosis

• 85% Weaned/Cow Exposed• 525 lb Wean Wt.• $85/cwt• Heterosis*–Maternal – 15%–Individual – 7%

*Bourdon 2000

Economics of HeterosisWeaning Weight/Cow Exposed

Cow % A B CA100A75,B25A67,B33A50,B50A50,BC25

Economics of HeterosisWeaning Weight/Cow Exposed

Cow % A B CA100 0A75,B25 $35A67,B33 $50A50,B50 $70A50,BC25 $70

Economics of HeterosisWeaning Weight/Cow Exposed

Cow % A B CA100 0 $27A75,B25 $35 $50A67,B33 $50 $59A50,B50 $70 $70A50,BC25 $70 $78

Economics of HeterosisWeaning Weight/Cow Exposed

Cow % A B CA100 0 $27 $27A75,B25 $35 $50 $55A67,B33 $50 $59 $66A50,B50 $70 $70 $83A50,BC25 $70 $78 $78

Economics of HeterosisWeaning Weight/Cow Exposed

2 Breed Comp (50%) $422 Breed Rotation (67%) $562 Breed Roto-Term (var) $614 Breed Comp (75%) $63

(Heterosis)

Longevity CalculatorBullock and Burdine

Longevity CalculatorDownload this from http://www.nbcec.org/nbcec/bb_IV/long-hetero.xls

Economics of HeterosisLongevity

• Based on results of Nunez-Dominquez et al (1991) using imposed culling policy•Replacement Rate–Straightbred – 18.1%–Crossbred – 15.8%

Economics of HeterosisLongevity

•Mortality Rate

–Straightbred – 20%

–Crossbred – 9%

• Infertility – varied by age group (Actual Culling Prac)

Economics of HeterosisLongevity

• 550 lb steer calves @ $85/cwt

• 500 lb heifer calves @ $75/cwt

•Weights adjusted for AOD

•No price slide

• 1200 lb cows @ $42/cwt (adj)

Economics of HeterosisLongevity

• Economic differential

–Fertility differences included

•$33.45/hd advantage

–Fertility differences excluded

•$11.86/hd advantage

Economics of HeterosisCombined

• Economic Differential

–Maximum Heterosis

•$95.31/hd

–50% Heterosis

•$47.65/hd

Price Differential

• Straightbred calves must receive an almost $10/cwt premium to compensate for reduced production compared to minimal crossbreeding systems

Economic Considerations

• Feedlot

–Morbidity (?)

–Mortality (?)

–Feed Efficiency (1%)

–Margins

Economic Considerations

• End Product–Carcass Weight (4%)–Dressing Percent (0%)–Yield Grade (1%)–Quality Grade (1%)–Price Structure

Summary

• Profitability in feeder calf production is greatly impacted by crossbreeding

• Primarily due to heterosis

Summary

• Benefits in the feedyard and carcass traits are less impacted by heterosis, however, complementarity may play an important role here

Thanks

•Kenny Burdine

• Lee Meyer

• Steve Isaacs

• Fred Thrift

Questions

Darrh Bullock

University of Kentucky

dbullock@uky.edu

(859) 257-7514