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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
