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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 from http://www.nbcec.org/nbcec/bb_IV/xbrd-spreadsh.xlshttp://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 Heterosis Weaning Weight/Cow Exposed Cow %ABC A100 A75,B25 A67,B33 A50,B50 A50,BC25
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Economics of Heterosis Weaning Weight/Cow Exposed Cow %ABC A1000 A75,B25$35 A67,B33$50 A50,B50$70 A50,BC25$70
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Economics of Heterosis Weaning Weight/Cow Exposed Cow %ABC A1000$27 A75,B25$35$50 A67,B33$50$59 A50,B50$70 A50,BC25$70$78
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Economics of Heterosis Weaning Weight/Cow Exposed Cow %ABC A1000$27 A75,B25$35$50$55 A67,B33$50$59$66 A50,B50$70 $83 A50,BC25$70$78
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Economics of Heterosis Weaning Weight/Cow Exposed 2 Breed Comp (50%)$42 2 Breed Rotation (67%)$56 2 Breed Roto-Term (var)$61 4 Breed Comp (75%)$63 (Heterosis)
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Longevity Calculator Bullock and Burdine
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Longevity Calculator Download this from http://www.nbcec.org/nbcec/bb_IV/long-hetero.xlshttp://www.nbcec.org/nbcec/bb_IV/long-hetero.xls
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Economics of Heterosis Longevity 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 Heterosis Longevity Mortality Rate –Straightbred – 20% –Crossbred – 9% Infertility – varied by age group (Actual Culling Prac)
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Economics of Heterosis Longevity 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 Heterosis Longevity Economic differential –Fertility differences included $33.45/hd advantage –Fertility differences excluded $11.86/hd advantage
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Economics of Heterosis Combined 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 dbullock@uky.edu (859) 257-7514
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