Where in the beef-cattle supply chain might DNA tests generate value?

Abstract

DNA information has the potential to generate value for each sector of the beef-cattle industry. The value distribution among sectors (breeding, commercial, feedlot, processing) will differ depending on marketing. The more descendants an animal produces, the more valuable each unit of genetic improvement becomes. Therefore, the value of using DNA testing to increase the accuracy of selection and accelerate the rate of genetic gain is highest in the breeding sector, particularly for replacement stud animals. There is a lesser value associated with increasing the accuracy of yearling commercial bulls. The cost to DNA test commercial sires will likely be incurred by breeders before sale, and must be recouped through higher bull sale prices or increased market share. Commercial farmers could also use DNA tests to improve the accuracy of replacement female selection. This assumes the development of DNA tests that perform well for the low-heritability traits that directly affect maternal performance (e.g. days to calving) in commercial cattle populations. DNA tests may provide the sole source of information for traits that are not routinely measured on commercial farms. In that case, DNA test information will provide new selection criteria to allow for genetic improvement in those traits. As DNA test offerings mature to have improved accuracy for traits of great value to the feedlot (e.g. feed conversion, disease resistance) and processing (e.g. meat quality) sectors, the added value derived from DNA-enabled selection for these traits will need to be efficiently transferred up the beef production chain to incentivise continued investment. The widespread adoption of DNA testing to enhance the accuracy of selection will likely require an approach to share the value realised by downstream sectors of the beef-cattle industry with those upstream sectors incurring DNA collection and testing expenses. © 2012 CSIRO.