Decision making for sexed semen and beef semen in dairy production

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Breeding strategies using sexed semen on younger and supe­rior animals and beef semen on older and inferior animals are becoming widely used in the dairy industry because it bal­ances the number of replacements produced and required while bringing extra income of selling crossbreed beef calves that are more valuable than dairy calves. The value proposition also implies genetic improvement because of greater breed­ing selection and shorter intergenerational interval, which can be captured in improved milk productivity. The best semen-type breeding strategy is farm specific and dependent on herd reproductive performance and ever-changing market condi­tions. Hence, the need to use models and projections to assert the optimal semen-type breeding strategy that optimizes the net return of each farm under specific market conditions. We analyzed the economic value of using alternative breeding strategies using sexed, beef and conventional semen using 2 ap­proaches. A short-term approach contained in a user-friendly decision support tool, the Premium Beef on Dairy Program, assessed the income from calves over semen costs over a breed­ing cycle whereas a long-term approach, using the Animal Life Cycle submodule of the Ruminant Farm Simulation Model, included additionally breeding, rearing and feed costs, and slaughter, heifer and milk sales revenues. Important in the long-term evaluation was the milk value change as a proxy for genetic improvement. Both approaches consistently pointed out that the advantage of the sexed/beef semen is positively related to herd reproductive performance. The greater the reproduc­tive performance the more the economic opportunity. With medium to high reproductive performance (above ~20% 21-d pregnancy rate), the Premium Beef on Dairy Program found the maximum income from calves over semen cost occurred when sexed semen was used in the first 2 heifer breedings and first and second lactation superior cows, while the rest of the heifer breedings were made with conventional semen and the rest of the cow breedings were made with beef semen. These results were consistent in the long-term analysis, which indi­cated that even a slightly more aggressive breeding approach using sexed semen in all heifer breedings resulted in the best net return in the long-term when the extra value of increased milk productivity became the most important economic factor. Although the short-term analysis did not include the herd dy­namics and milk changes, it still produced the right trend and directionality for decision making. The recommendation is to use the Premium Beef on Dairy user-friendly tool according to a herd’s reproductive performance and market conditions, and repeat the analysis constantly as the management and market circumstances change. When a deep and long-term analysis is necessary, the use of the Life Cycle Assessment submodule from the RuFaS is critical. Thus, both approaches are useful and complementary.