Profitability of the use of new reproductive technologies in
beef production systems
D.C. SMEATON AND W.H. VIVANCO
AgResearch, Ruakura Research Centre, Private Bag 3123, Hamilton,
New Zealand
E-Mail:
NZSAP 2002 Abstract No. 34
Proceedings of the New Zealand Society of Animal Production 62:
133-137
Improvements in the productivity and profitability of beef
breeding cows are highly desirable despite their valuable pasture
management role. New reproductive technologies could help. The present
work added a gross margin analysis to a previously reported biological
model. Technologies, such as embryo transfer, sex ratio control, use of
small cow-large calf breeds, were tested. At commodity beef prices, use
of the new technologies in beef cows appeared to be mostly uneconomic,
even if biological efficiency benefits could be captured, unless embryo
prices were unrealistically low. The most profitable outcome was only
11% more profitable than the status quo natural-mating system.
However, profitability could be greatly enhanced if the returns on
weaners born to the new technologies were greater than commodity
returns. For example, at a mixed-sex embryo price 'in the straw' of $60
and assuming feed conversion and reproductive efficiency values similar
to natural mating, use of embryo transfer broke even at $2.61/kg calf
wean weight compared to a commodity return of $1.80. If ‘male only’
embryos were used, the breakeven return was $2.50. For $40 and $100
embryos, the respective breakeven premiums were 37 and 31% and 62 and
54%. The challenge, therefore, is to locate niche market returns not
available to commodity production systems.
Keywords: NZSAPAB;
beef; cow; embryo transfer; sex ratio; efficiency;
profitability; breakeven
Last Updated 30/07/2002
