Abstract

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.

DC, Smeaton, and WH Vivanco

Proceedings of the New Zealand Society of Animal Production, Volume 62, Palmerston North, 133-137, 2002