Conception Rates. 2. Economic Value of Unit Differences In Percentages of Sire Conception Rates

Abstract

The objectives of this research were to estimate 1) the annual increase in profitability and 2) the value of a unit of semen because of an increase of 1 in percentage of AI conception rate. Factors contributing to increased annual profit per cow included more milk production, less semen purchased, more calvings, and fewer reproductive cullings. With a 7% average monthly rate of decline in milk production between peak and end of lactation, $.24/kg of milk net income over feed cost, $20/unit of semen, $150 per calving, and $400 per reproductive culling, values for increased annual profitability per cow ranged from $.88 to $7.36, and increased value per unit of semen ranged from $.60 to $5.01, when estrus detection and AI conception were each constrained to minima of 30% and maxima of 70%. Additional probability of conception was worth less at high rates of estrus detection and of AI conception. Within-herd variation can be attributed to differences between cows in milk production, asset value of the cow based on future expectations of milk production, and seasonal differences in milk price and rates of estrus detection. Further differences between herds can be expected as producers vary in discounting values for uncertainty of information. Therefore, generalizations from a single set of assumptions may be limited, and application of methods to specific cows and producers may be desirable. © 1994, American Dairy Science Association. All rights reserved.