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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?


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

    2. Simple Economics • Income • Cost • Profit = Income - Cost

    3. Income • Weight • Price • Income = Weight * Price

    4. Costs • Overhead • Development • Maintenance • Production

    5. Economic Considerations • Cow/Calf Producer • Calving Ease • Weaning Weight • Weaning Rate • Calf Prices

    6. Economic Considerations • Cow/Calf Producer • Longevity/Replacement • Cow Maintenance • Cull Cow Prices • Health Costs

    7. Heterosis Impact on Profitability • Weaned Weight/Cow Exposed • Longevity/Replacement Rate • Feedlot Performance • Carcass Composition

    8. 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)

    9. 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)

    10. Crossbreeding Calculator Bullock and Isaacs

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

    12. Economics of Heterosis • 85% Weaned/Cow Exposed • 525 lb Wean Wt. • $85/cwt • Heterosis* • Maternal – 15% • Individual – 7% *Bourdon 2000

    13. Economics of HeterosisWeaning Weight/Cow Exposed

    14. Economics of HeterosisWeaning Weight/Cow Exposed

    15. Economics of HeterosisWeaning Weight/Cow Exposed

    16. Economics of HeterosisWeaning Weight/Cow Exposed

    17. Economics of HeterosisWeaning Weight/Cow Exposed (Heterosis)

    18. Longevity CalculatorBullock and Burdine

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

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

    21. Economics of HeterosisLongevity • Mortality Rate • Straightbred – 20% • Crossbred – 9% • Infertility – varied by age group (Actual Culling Prac)

    22. 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)

    23. Economics of HeterosisLongevity • Economic differential • Fertility differences included • $33.45/hd advantage • Fertility differences excluded • $11.86/hd advantage

    24. Economics of HeterosisCombined • Economic Differential • Maximum Heterosis • $95.31/hd • 50% Heterosis • $47.65/hd

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

    26. Economic Considerations • Feedlot • Morbidity (?) • Mortality (?) • Feed Efficiency (1%) • Margins

    27. Economic Considerations • End Product • Carcass Weight (4%) • Dressing Percent (0%) • Yield Grade (1%) • Quality Grade (1%) • Price Structure

    28. Summary • Profitability in feeder calf production is greatly impacted by crossbreeding • Primarily due to heterosis

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

    30. Thanks • Kenny Burdine • Lee Meyer • Steve Isaacs • Fred Thrift

    31. Questions Darrh Bullock University of Kentucky dbullock@uky.edu (859) 257-7514