Simulated effects of input and output prices on economic returns from three calf production systems

Abstract

By computer simulation the effect of variation in input and output prices on economic returns from three calf production systems was examined. Production of F1 Holstein × Gir calves was more profitable than Nelore × Nelore or F1 Angus × Nelore calf production, primarily because the market value of F1 Holstein × Gir heifer calves was substantially higher than that of any other calf type. Variation in semen price had little impact on economic efficiency of the F1 Holstein × Gir system. In simulations accounting for capital investment, however, prices of land and of purebred Gir cows had important influences.