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Is There Gold in Them Thar Crossbreeding 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

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Is there gold in them thar crossbreeding hills l.jpg

Is There Gold in Them Thar Crossbreeding Hills?

Darrh Bullock

University of Kentucky


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Simple Economics

  • Income

  • Cost

  • Profit = Income - Cost


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Income

  • Weight

  • Price

  • Income = Weight * Price


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Costs

  • Overhead

  • Development

  • Maintenance

  • Production


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Economic Considerations

  • Cow/Calf Producer

    • Calving Ease

    • Weaning Weight

    • Weaning Rate

    • Calf Prices


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Economic Considerations

  • Cow/Calf Producer

    • Longevity/Replacement

    • Cow Maintenance

    • Cull Cow Prices

    • Health Costs


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Heterosis Impact on Profitability

  • Weaned Weight/Cow Exposed

  • Longevity/Replacement Rate

  • Feedlot Performance

  • Carcass Composition


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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)


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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)


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Crossbreeding Calculator Bullock and Isaacs


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Crossbreeding Calculator

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


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Economics of Heterosis

  • 85% Weaned/Cow Exposed

  • 525 lb Wean Wt.

  • $85/cwt

  • Heterosis*

    • Maternal – 15%

    • Individual – 7%

*Bourdon 2000


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Economics of HeterosisWeaning Weight/Cow Exposed


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Economics of HeterosisWeaning Weight/Cow Exposed


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Economics of HeterosisWeaning Weight/Cow Exposed


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Economics of HeterosisWeaning Weight/Cow Exposed


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Economics of HeterosisWeaning Weight/Cow Exposed

(Heterosis)


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Longevity CalculatorBullock and Burdine


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Longevity Calculator

Download this fromhttp://www.nbcec.org/nbcec/bb_IV/long-hetero.xls


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Economics of HeterosisLongevity

  • Based on results of Nunez-Dominquez et al (1991) using imposed culling policy

  • Replacement Rate

    • Straightbred – 18.1%

    • Crossbred – 15.8%


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Economics of HeterosisLongevity

  • Mortality Rate

    • Straightbred – 20%

    • Crossbred – 9%

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


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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)


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Economics of HeterosisLongevity

  • Economic differential

    • Fertility differences included

      • $33.45/hd advantage

    • Fertility differences excluded

      • $11.86/hd advantage


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Economics of HeterosisCombined

  • Economic Differential

    • Maximum Heterosis

      • $95.31/hd

    • 50% Heterosis

      • $47.65/hd


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Price Differential

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


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Economic Considerations

  • Feedlot

    • Morbidity (?)

    • Mortality (?)

    • Feed Efficiency (1%)

    • Margins


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Economic Considerations

  • End Product

    • Carcass Weight (4%)

    • Dressing Percent (0%)

    • Yield Grade (1%)

    • Quality Grade (1%)

    • Price Structure


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Summary

  • Profitability in feeder calf production is greatly impacted by crossbreeding

  • Primarily due to heterosis


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Summary

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


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Thanks

  • Kenny Burdine

  • Lee Meyer

  • Steve Isaacs

  • Fred Thrift


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Questions

Darrh Bullock

University of Kentucky

[email protected]

(859) 257-7514


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