Breeding For Profit, A Cattle Producer's Guide

Breeding for Profit A Cattle Producer’s Guide

Our Goal: Provide Genetics and Genetic Resources that Maximize Your Profit When it comes to establishing a profit-maximizing genetic program, International Genetic Solutions (IGS) provides the most powerful selection tools available to cattlemen. The breed associations that have chosen to be IGS partners, are companies that are serious about maximizing the profitability of commercial cattlemen through genetics, regardless of breed or personal agenda.

The profitability and success of your genetic program is our responsibility. We take this responsibility very serious and utilize only the most sound science and research to deliver the world’s most powerful beef selection tools to commercial cattlemen.

These industry-leading partnerships have made IGS’s International Cattle Evaluation the largest, most powerful genetic evaluation in the world. To put this into perspective, using this genetic evaluation would be like having a research herd of 15 million head at your fingertips. This herd of yours grows by 300,000 every year and allows you to make the most accurate bull buying and animal breeding decisions possible. Its multi-breed capability is tailor-made for cattle producers who are serious about profit. IGS and its cooperators have used science to develop the world’s most useful EPDs and profit-driven selection tools. This cooperation has allowed for unmatched research and industry-focused science.

This large database and science-based research provides the best opportunity for commercial cattlemen to maximize profit through genetics.

Your Success is Our Job Everything we do is for you. Let us know how we can help you be more successful. Contact any of the members of IGS including the American Simmental Association for assistance, questions or comments regarding our products and the science of more profitable genetics.

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Table of Contents: The First Step: Crossbreed

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Simple, Yet Effective, Crossbreeding Programs

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Composite Seedstock

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The Second Step: Breed Selection

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Selection of Economically Superior Breeds

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The Third Step: Sire Selection

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Selection of Economically Superior Sires

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Example of Maximizing Profit

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Advanced Options

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Genetic Evaluation for Commercial Producers

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Additional Information

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Expected Progeny Differences (EPDs)

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$ Indexes (API and TI)

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Crossbreeding

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Breed Comparisons

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The First Step: Maximize profit through your breeding program by implementing a simple, yet effective, crossbreeding program.

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Simple, Yet Effective, Crossbreeding Programs Animal breeders and industry professionals have long understood that crossbreeding is the number one component affecting profitability in any breeding program. Hybrid vigor has a dramatic impact on cowherd traits (fertility, longevity and overall cowherd efficiency); i.e. traits having the greatest impact on profit.

Although the beef industry as a whole has been slow to adopt this science, many have realized the sizeable increase in profit associated with the use of structured crossbreeding programs. The swine and poultry industries have taken full advantage of crossbreeding; cattle producers who are serious about being profitable must do so also.

Different crossbreeding programs experience varying levels of heterosis. In addition, the ease of implementation varies greatly.

Hybrid Vigor Boost in Fertility Breed A Fertility

Breed B Fertility

Due to the potential benefits of hybrid vigor in the cowherd, however, there is a large opportunity cost associated with raising and keeping straightbred cattle. Therefore, commercial producers would be missing out on a large degree of profit potential if they maintain straightbred cattle simply to create F1 calves.

Retained heterosis is the amount of the maximum (F1) heterosis experienced in subsequent generations. You can view the different breeding programs and their retained heterosis values in the MARC report “Composite Breeds to Use Heterosis and Breed Differences to Improve Efficiency of Beef Production.”

Following three and even two-breed rotations allow producers to capture a great deal of retained heterosis; however, rotational crossbreeding requires a higher level of management than straight breeding — a level of management many producers are not willing or able to supply. Producers using rotational crossbreeding may also experience reduced uniformity due to disparate breed proportions within their herd.

A/B Crossbreds increase in fertility

Composite Seedstock Composite seedstock provides an easy way to implement a crossbreeding program that retains a sufficient level of heterosis and takes advantage of the complementarity disparate breeds provide — while maintaining uniformity.

Hybrid Vigor

Breeding a purebred of one breed to a purebred of another breed results in maximum (F1) heterozygosity. Producers who maintain a straightbred herd and are seeking to improve their profitability through crossbreeding are initially able to take advantage of maximum heterosis by introducing a purebred of a different breed.

The number of breeds used within a composite program depends largely on the availability of desired seedstock. In addition, some breeds may be at genetic levels poor enough to cancel out the profit gained through hybrid vigor. Therefore, breed quality in terms of economically relevant traits and composite seedstock availability must be taken into consideration while choosing composite bulls.

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The Second Step: Maximize profit through genetics by selecting breeds that excel in economically relevant traits and complement each other.

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Selection of Economically Superior Breeds Most producers choose a two-breed composite to provide economically superior genetics and profit-driving heterosis. More heterosis is attained when breeds that are as unrelated as possible are used.

For example, a Bos taurus crossed with a Bos indicus would yield more hybrid vigor than a Bos taurus crossed with a Bos taurus.

If you do not live in an environment in which you need Bos indicus, the Meat Animal Research Center (MARC) has long held that a 50% British 50% Continental breed makeup will provide the economically optimal end product. In addition, more hybrid vigor will be realized when a British breed is crossed with a Continental breed than a British breed with another British breed.

The next step is to select the breeds that will deliver the most profit. No single breed can provide the best genetics for every economically relevant trait, so it is important to pick breeds that complement each other.

The MARC data in Germplasm Report 22 is an excellent resource to investigate breed differences. Availability of genetics should also be considered. If the producer is using artificial insemination, semen for most breeds is fairly easy to obtain. When purchasing bulls, however, you must consider the distance traveled for quality bulls and the associated trucking costs.

It is important to rank breeds based on the traits that make the most money. Pick breeds that will complement each other.

For example, a British breed may provide more marbling while a Continental breed may provide more yield grade and growth.

Producers should also consider availability of desired coat color and horned/polled genetics.

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The Third Step: Maximize profit through genetics by selecting economically superior sires. In other words, select for profit.

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Selection of Economically Superior Sires Genetic selection is a powerful science that has revolutionized the livestock industry. It is a fact that EPDs are far and away the most effective tools for making genetic progress in whatever trait they measure. This is because EPDs fully leverage all available information (phenotypes, pedigrees and DNA tests) to predict genetic level.

That said, simply predicting genetic levels for a trait or traits will not tell us which animals are superior. The overall value of an animal is determined by the impact it has on the operation’s bottom line — which is clearly a function of how it sizes up in many traits, rather than its genetic level in a single trait.

Since many traits impact profit, sifting through all of them to gauge an animal’s overall impact on profitability is a daunting task. In the past, beef producers have typically relied on hunches and guesswork to navigate the traits comprising sire profitability; however, modern genetic evaluation offers a much more effective approach — the economic selection index. Essentially genetic accounting, the economic selection index has long been accepted by animal geneticists as the most effective approach to select for profit.

Though relatively new to the beef industry, economic indexes have been used by the poultry, swine and dairy industries for many decades. In fact, you would be hard pressed to find a pig, chicken or dairy cow that was not bred through the use of an economic selection index.

To provide the same powerful technology to the beef industry, ASA has collaborated with USDA and CattleFax in the development of economic selection indexes. Through this collaboration we are able to predict the profit level for every animal in our database, which allows you to make more progress in the most important trait of all — profit! For more detailed information on ASA’s economic indexes see Page 15.

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Examples of Maximizing Profit: Scenario: You have straight Angus cows you desire to design a genetic program that will maximize profitability through genetics within your herd.

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Table 1: 2013 MARC Across-Breed Comparison & GPE Report 22

Step 1: Establish a Simple Yet Effective Crossbreeding Program Based on the research provided by the Meat Animal Research Center, to maximize profit in both your cowherd and feeder calves, you have decided to work toward a 50% British, 50% Continental breed makeup in your herd. For simplicity, you decide to utilize a two-breed composite.

Step 2: Pick Economically Superior and Complementary Breeds Based on data from 2013 across-breed EPDs and MARC Report 22 summarized in Table 1, you have decided to utilize Simmental and Angus for your two breeds within your crossbreeding program.

A. Based on a breeding plan similar to the one in Table 2, you decide to buy purebred Simmental bulls the first year and then move to composite bulls in subsequent years. Your goal is to get your cowherd to a SimAngusTM composition as quick as possible so you sell as many bred Angus cows as you’re able to replace with your ideal genetics. If you have to breed heifers, it would be wise to consult an ASA staff member to determine a Calving Ease EPD cut-off to use in the bull selection process for any breed.

B. An ASA representative can work with you to develop a tailored plan to fit your current situation and desired breed composition regardless of breed (even if it isn’t Simmental). Some producers find it easiest to utilize composite bulls right from the start which is certainly a justifiable decision.

Trait

Simmental Rank vs. Major Continental Breeds*

Angus/Red Angus Rank vs. Major British Breeds**

Marbling Score

First

First

Carcass Weight

First

First

# Retail Product

Second

First

Weight Gain Feed Efficiency

First

Second

Weaning Weight

Second

First

Post Weaning Gain

Third

First

Shear Force

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First

Calving Ease

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Second

% Puberty

First

First

% Pregnancy

Second

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2013 MARC Across Breed EPD Table, GPE Rep. 22, MARC, USDA * Major Continental Breeds — Simmental, Gelbvieh, Limousin, Charolais ** Major British Breeds — Angus, Red Angus, Hereford, Shorthorn, and South Devon

Table 2: Proposed Mating Plan** Year

Bull Battery Composition

Cow Herd Composition

Resulting Heifer Calves

Replacement Heifers

1

Sm

100 An

50 SmAn

50 An

2

Sm

100 An

50 SmAn

50 SmAn

3

SmAn

50 An + 100 SmAn

25 ¾ An + 25 SmAn

50 SmAn

4

SmAn

100 SmAn

50 SmAn

25 SmAn

**This plan assumes you buy more bulls after year two to avoid having sires breed their daughters. This plan can be slightly modified to fit your program, but will still yield similar long-term results.

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Step 3: Select Economically Superior Sires

Step 3: Select Economically

You decide that the primary goal of your breeding program is to select for profit. Therefore, you utilize economic indexes.

Since you are using SimAngusTM bulls, the two indexes available to you are API (All Purpose Index) and TI (Terminal Index).

You decide that the primary goal of you is to select for profit. Therefore, you util Since you are using SimAngusTM bulls, t to you are API (All Purpose Index) and Therefore, you must decide if you will r your own herd to maintain your cowhe all of your calves and buy heifers from a For more information on the indexes, ref

You must decide: • will you retain heifers out of your own herd to maintain your cowherd, or • will you purchase your heifers from an outside source.

For more information on the indexes, refer to Page 15.

A. For the sake of this example, you will retain heifers out of your own herd and utilize API. You need to purchase four bulls.

While looking through a catalog of available bulls, you observe the following API values in Table 3.

B. With the above assumption, our system predicts that purchasing bulls E, F, G and H will yield you $19,000 more than bulls A, B, C and D if the bulls are exposed to 25 cows/year for 4 years.

This calculation is based on the fact that bulls E, F, G Table 3: and H average $47.50 more per exposure. Therefore, since we are assuming the bulls to be exposed to Bull API 100 cows over their life time (25 cows/year x 4 years) we gain $4,750/bull or $19,000 over all four.

API can be used effectively when determining how much more you should pay for one bull compared to another. Once again, remember to keep calving ease in mind on heifers no matter what breeds you use.

Following these steps will allow you to maximize profit within your genetic program. For questions or more information regarding this science, please contact the American Simmental Association.

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A

$135

B

$140

C

$128

D

$150

E

$183

F

$178

G

$195

H

$187

A. For the sake of this example, you will retain heifers out of your own herd and utilize API. You need to purchase four bulls. While looking through a catalog of available bulls, you observe the following API values in Table 3.

B. With the above assumption, our syste bulls E, F, G and H will yield you $19,000 ($4,750 x 4) and D if the bulls breed 25 cows/year ously be used when determining how pay for one bull compared to another keep calving ease in mind on heifers use.

Following these steps will allow you to within your genetic program. For questi information regarding this science, plea American Simmental Association.

Advanced Options: Commercial Producers Genetic Evaluation r breeding program Superior Sires

lize economic indexes. the two indexes available TI (Terminal Index). retain heifers out of rd or if you will harvest an outside source. fer to Page 15.

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When it comes to selecting replacement heifers or making culling decisions, many commercial producers are limited to evaluating their females phenotypically or a simple gate cut.

The former isn’t likely to be much better than the latter and both are extremely primitive compared to the use of EPDs and economic indexes.

Many producers have collected extensive data on their animals and are faced with the daunting task of evaluating that data to make selection decisions. If you are a producer who collects data, a professional genetic evaluation through International Genetic Solutions (IGS) would be of great benefit. This will result in EPDs and economic indexes on all your females allowing for the most accurate selection decision. In addition to genetic evaluation, the program provides on-line databasing and herd management software services.

em provides that purchasing

) more than bulls A, B, C r for 4 years. This can obviw much more you should r. Once again, remember to no matter what breeds you

maximize profit ions or more ase contact the

For more detailed information regarding genetic evaluation services for commercial producers, please contact the American Simmental Association.

We think you will agree that this may be the best deal in the business!

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Additional Information: Expected Progeny Differences (EPDs): EPDs are the most accurate and effective tool available for comparing genetic levels. In using EPDs, the difference between two sires’ EPDs represents the unit difference expected in the performance of their progeny. For example, if sires A and B have EPDs of +10 and –5, a 15-unit difference would be expected in their progeny (moving from -5 to +10 yields 15 units). The key to using EPDs is knowing in what units they are expressed. For example, if the above case referred to weaning weight EPDs, sire A would be expected to sire 15-pounds more weaning weight than sire B. If calving ease were the trait, sire A would be expected to sire 15-percent more unassisted births in first-calf heifers; in other words, if sire B sired 30 assists in a group of 100 heifers, we would expect sire A to require 15 assists. A percentile-ranking chart is required to determine where a bull’s EPDs rank him relative to other bulls in the breed. For percentile rankings or more detailed information about EPDs and $ indexes visit www.simmental.org.

Listed below are the units ASA EPDs are expressed in: All-Purpose Index (API): Dollars per cow exposed under an all-purpose-sire scenario. (See below for more details.)

Back Fat (BF): Inches of backfat.

Birth Weight (BW): Pounds of birth weight.

Calving Ease (CE): Percent of unassisted births when used on heifers.

Carcass Weight (CW): Pounds of carcass weight.

Maternal Calving Ease (MCE): Percent of unassisted births in first-calving daughters.

Milk (MILK): Pounds of weaning weight due to milk.

Marbling (MARB): Marbling score.

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Maternal Weaning Weight (MWW): Pounds of weaning weight due to milk and growth.

Yield Grade (YG): Yield grade score.

Using API and TI: First, determine which index to use; if you are keeping replacements use API, if not, TI. Then, just as with EPDs, zero in on the unit difference between bulls. As described above, index units are in dollars per cow exposed.

The difference can be used to determine how much a bull is worth compared to another. Or, put another way, how much you can pay for one bull compared to another. For example, when buying an all-purpose-type sire, you can quickly figure a bull scoring +100 for API is worth an extra $6,000 over a +50 bull if both are exposed to 30 cows over 4 years ($50 difference x 30 head x 4 year = $6,000). A percentileranking chart is required to determine where a bull’s index value ranks him relative to other bulls in the breed. For percentile rankings or more detailed information about EPDs and $ indexes, visit www.simmental.org.

$ Indexes:

Crossbreeding

Though EPDs allow for the comparison of genetic levels for many economically important traits, they provide only a piece of the economic puzzle. That’s where $ indexes come help.

Through well-conceived, rigorous mathematical computation, $ indexes blend EPDs and economics to estimate an animal’s overall impact on your bottom line. The same technology that led to the dramatic progress in swine, poultry and dairy genetics over the last several decades was used to develop the following

For more information on the benefits of heterosis and complementarity, retained heterosis and structured crossbreeding, please refer to “Composite Breeds to Use Heterosis and Breed Differences To Improve Efficiency of Beef Production”, Agricultural Research Service, United States Department of Agriculture, October 1999.

Ribeye Area (REA): Square inches of ribeye.

Warner-Bratzler Shear Force (SHR): Pounds of force required to shear a steak.

Stayability (STAY): Percent of daughters remaining in the cowherd at 6 years of age.

Terminal Index (TI): Dollars per cow exposed under a terminal-sire scenario. (See below for more details.)

Weaning Weight (WW): Pounds of weaning weight.

Yearling Weight (YW): Pounds of yearling weight.

All-Purpose Index (API): Evaluates sires for use on the entire cow herd (bred to both Angus first-calf heifers and mature cows) with the portion of their daughters required to maintain herd size retained and the remaining heifers and steers put on feed and sold grade and yield.

Terminal Index (TI): Evaluates sire for use on mature Angus cows with all offspring put on feed and sold grade and yield.

Breed Comparisons For more information regarding breed comparisons please refer to the Germplasm Evaluation Program, Progress Report No. 22, Agricultural Research Service, United States Department of Agriculture, January 2004 under the direction of Roman L. Hruska U.S. Meat Animal Research Center in Cooperation with University of Nebraska, Institute of Agriculture and Natural Resources, Agricultural Research Division.

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