Is There Gold in Them Is There Gold in Them Thar Crossbreeding Thar Crossbreeding

Hills?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

–Calving Ease

–Weaning Weight

–Weaning Rate

–Calf Prices

Economic Considerations

•Cow/Calf Producer

–Longevity/Replacement

–Cow Maintenance

–Cull Cow Prices

–Health Costs

Heterosis Impact on Profitability

•Weaned Weight/Cow Exposed

• Longevity/Replacement Rate

• Feedlot Performance

•Carcass Composition

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)

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)

Crossbreeding Calculator Bullock and Isaacs

Crossbreeding Calculator

Crossbreeding Evaluation Worksheet

Default VariablesNumber of cows in herd 30Percent calves weaned per cows exposed 85%Average weaning weight (LB) 525Weighted average calf price ($/LB) 0.85

Straight Bred Herd IncreasedWn Wt/Hd $/Hd $/Herd

Cow Herd Breed A 0 -$ -$ Bull Breed A

2-Way Cross Herd IncreasedCow Herd Breed A B Wn Wt/Hd $/Hd $/HerdPercent in Herd 87% 13% 22 18.97$ 569$ Percent in Herd 75% 25% 22 18.97$ 569$ Percent in Herd 67% 33% 22 18.97$ 569$ Percent in Herd 50% 50% 22 18.97$ 569$

Bull Breed A

3-Way Cross Herd IncreasedCow Herd Breed A B C Wn Wt/Hd $/Hd $/HerdPercent in Herd 50% 25% 25% 45 37.93$ 1,138$ Percent in Herd 33% 33% 33% 45 37.93$ 1,138$

Bull Breed A

Change In

Change In

Change In

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

Economics of Heterosis

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

*Bourdon 2000

Economics of HeterosisWeaning Weight/Cow Exposed

Cow % A B CA100A75,B25A67,B33A50,B50A50,BC25

Economics of HeterosisWeaning Weight/Cow Exposed

Cow % A B CA100 0A75,B25 $35A67,B33 $50A50,B50 $70A50,BC25 $70

Economics of HeterosisWeaning Weight/Cow Exposed

Cow % A B CA100 0 $27A75,B25 $35 $50A67,B33 $50 $59A50,B50 $70 $70A50,BC25 $70 $78

Economics of HeterosisWeaning Weight/Cow Exposed

Cow % A B CA100 0 $27 $27A75,B25 $35 $50 $55A67,B33 $50 $59 $66A50,B50 $70 $70 $83A50,BC25 $70 $78 $78

Economics of HeterosisWeaning Weight/Cow Exposed

2 Breed Comp (50%) $422 Breed Rotation (67%) $562 Breed Roto-Term (var) $614 Breed Comp (75%) $63

(Heterosis)

Longevity CalculatorBullock and Burdine

Longevity CalculatorDownload this from http://www.nbcec.org/nbcec/bb_IV/long-hetero.xls

Economics of HeterosisLongevity

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

Economics of HeterosisLongevity

•Mortality Rate

–Straightbred – 20%

–Crossbred – 9%

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

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)

Economics of HeterosisLongevity

• Economic differential

–Fertility differences included

•$33.45/hd advantage

–Fertility differences excluded

•$11.86/hd advantage

Economics of HeterosisCombined

• Economic Differential

–Maximum Heterosis

•$95.31/hd

–50% Heterosis

•$47.65/hd

Price Differential

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

Economic Considerations

• Feedlot

–Morbidity (?)

–Mortality (?)

–Feed Efficiency (1%)

–Margins

Economic Considerations

• End Product–Carcass Weight (4%)–Dressing Percent (0%)–Yield Grade (1%)–Quality Grade (1%)–Price Structure

Summary

• Profitability in feeder calf production is greatly impacted by crossbreeding

• Primarily due to heterosis

Summary

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

Thanks

•Kenny Burdine

• Lee Meyer

• Steve Isaacs

• Fred Thrift

Questions

Darrh Bullock

University of Kentucky

dbullock@uky.edu

(859) 257-7514