Economics of Genetic Improvement - Why countries should invest in genetic improvement programmes. Leo Dempfle International Consultant and Department of Animal Science University of Technology Munich/Germany.
Department of Animal Science
University of Technology Munich/Germany
Performance (Phenotype) depends onGenetics and on the Environment (Management)Phenotype=f(Genetics)+f(Environment)P = G + EIf interactionsP = G + E + GxEP = G + E +GE
FAO-trial in PolandComparison of 10 Black and White strains (Israel, US, Canada, Netherlands, France, Germany, NZ, ...)US: 197.2 kg Fat + 182.7 kg Protein = 379.90 kg val. SolidsNS: 206.0 kg Fat + 180.1 kg Protein = 386.10 kg val. SolidsUS: valuable solids/100 kg body weight = 66NZ: valuable solids/100 kg body weight = 69Their might be some interactions. Superiority of NZ was stronger at lower plan of nutrition.Israel, Germany but Irland!!
Genetic improvement is slow with only small increments (eg 1% of the mean), except for importing genetic progress
For a private entrepreneur it is difficult to recover the costs
On the other hand, genetic improvement has some remarkable positive properties, like being
which is very favorable for the economics of it
Animal Breeding Law
Every farmer had to use a licenced bull
Only a recognised breed societies could produce licenced bulls
Up to 3 quarters of the cost of Recording was paid by the State
Very strong farmers‘ cooperatives in the whole dairy sector (factories, marketing, AI, Recording, Genetic improvement).
So essentially the whole dairy industry is supporting Genetic Improvement!
For a private investor I see little chance, since
the private good turns quickly into a public good!!
4600+30x)G = 4600+30x80=7000kg
4600+25.75x)G+irsA = 4600+2060+1.5x0.9x500=7335 kg
Offspring of a test bull: (4600+7000)/2=5800
Offspring of a pro. bull: (4600+7335)/2=5967
Thus we have a difference of 167 kg
and price for testbull is 3.00US$/dosis and for proven bull 12.00US$
5000 units semen from test bulls or
1250 units semen from proven bulls
Testbulls: (5800-4600)x800=960,000 kg milk
Pro.bulls: (5967-4600)x200=273,400 kg milk
11,000x(683.50-600)=918,500. kg milk
500x(12-3) = 4500 US$
(with 35000 cows/year served it is doubtfull if 500 doses are really needed)
Thus with a limited budget use ‚cheap‘ semen for female replacement and get best semen for male replacements
The difference was analysed between two breeds (Simmental vs German Friesian)
Overall the German Friesian produced about 16% more milk (ca 600 kg)
However, if the material was stratified according to th yield of the Simmental the following result was obtained:
Do not only improve Genetics, but also management