Comparison of breeding and marketing systems for Red Angus cattle using an integrated computer-based spreadsheet

Abstract

An integrated computer-based spreadsheet was developed with data from 581 Red Angus-sired calves to compare synchronized AI and natural service breeding systems. This comparison was based on input costs, genetic merit of sires used for mating, and calf marketing system, using differences in net return. The spreadsheet integrated four elements into a decision summary: bull costs, AI costs, genetics merit, and marketing options. An economic sensitivity analysis was used to identify trends and key variables in the net return of each decision. Three prominent variables identified from economic analysis were bull purchase price, semen price, and percent genetic change. Bull purchase price was a primary factor in changes in net return; semen costs and genetic merit change explained rearrangements in ranking of net return. These two variables altered the ranking based on whether the estrous synchronization protocol used estrus detection or timed Al. The spreadsheet identified AI to be more cost effective than natural service when calves are marketed as finished cattle. Net revenue from AI calves was greater in all retained ownership scenarios; the weaned marketing scenario caused net return to vary by synchronization system for the combinations of costs and changes in genetic merit. However, there was a wide variance in identifying which breeding system provided the greatest benefit when calves were marketed as feeder cattle. Retaining ownership through finish and marketing either on the cash market or on a grid proved to be advantageous to AI in all of the estrous synchronization protocols provided. The economic advantage ranged from $142.98 to $214.16 per head compared with marketing at weaning. The spreadsheet developed provides a useful tool for evaluating the economic impacts of breeding system decisions.