Economic comparison of open and closed nucleus breeding schemes for wool production

Abstract

Returns on investments in open or closed nucleus breeding schemes to improve clean wool production were examined using Hill's approach of examining the flow of genes through the population. Returns on capital in such schemes are competitive with many alternative investments on the farm if predictions of response are correct. For example, for a typical case considered with heritability of wool weight of 0·4, standard deviation of 0·4 kg, 90% lambs weaned per ewe joined from mature ewes, and 250 cents/kg clean, marginal returns on money invested in labour and materials in the breeding programme in excess of 40% were obtained. The return on the extra investment with an open nucleus using 50% of base-born ewes in the nucleus was about 20%. Returns are sensitive to cost, lambing percentage, price and heritability, the extra returns from the open nucleus becoming more attractive as predicted response or price increases. The value of the gains is not very sensitive to numbers of age groups of ewes or rams. Most of the extra returns go to the commercial flocks, so premiums would need to be paid to the nucleus to provide incentives to maintain the breeding programme.