Assessing the value of breeding technologies to dairy farmers

J. Rendel, R. Jackson, B. Harris, T. Allison, P. Shannon, L. Burton and H. Tempero

Livestock Improvement, Private Bag 3016, Hamilton, New Zealand.

Proceedings of the New Zealand Society of Animal Production, 1996, 56: 22-24

The adoption of technologies for breeding dairy cattle requires estimating the financial return to dairy farmers in conjunction with assessing the financial implications to the breeding company. This paper describes a procedure currently used by the Livestock Improvement Corporation.

The net on-farm income generated as a result of the new technology is calculated. This is discounted to a Net Present Value allowing for the cost of the technology. A positive NPV indicates the adoption of the technology is of benefit to the dairy farmer.

The breeding company also should assess the funding implications of any change. Typically this is expressed in terms of the increase/decrease in price of products and services.

Keywords: NZSAPAB; Breeding scheme; new technology; investment; net present value; dairy cattle.

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Last Updated 18-03-1997