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favourable – for instance, animal 8 has the highest estimates of pe and this is reflected
         by her high average yield – or could reduce performance (for example, cow 6 has a
         very negative estimate of pe and low average yield). A practical example of such per-
         manent environment effect could be the loss of a teat by a cow early in life due to
         infection. Thus differences in estimates of pe represent permanent environmental dif-
         ferences between animals and could help the farmer, in addition to the breeding value,
         in selecting animals for future performance in the same herd. The sum of breeding
                                             ˆ
         value and permanent environment effect (a  + pe ) for animal i is termed the probable
                                              i   i
         producing ability (PPA) and represents an estimate of the future performance of the
         animal in the same herd. If the estimate of the management level (M) for animal i is
         known, its future record (y ) can be predicted as:
                                i
            y  = M + PPA
             i
         This could be used as a culling guide.


         4.2.3  Calculating daughter yield deviations

         As indicated in Section 3.3.3, daughter yield deviation (DYD) is commonly calculated
         for sires in dairy cattle evaluations. The calculation of DYD for sire 1 in Example 4.1
         is hereby illustrated.
            First, the yield deviations for the daughters (cows 4, 6 and 8) of sire 1 are
                                           −1
         calculated. Thus for cow i, YD  = (Z′Z) Z′(y  − Xb − Wpe). Therefore:
                                   i            i
                   1
            YD  =  [(201 − 175.472 − 0 − 8.417) + (280 − 241.893 − 0 − 8417)] = 23.4005
               4   2
            YD =   1 [(160 − 175.472 − 44.065 − (−17.229))
               6   2
                  + (190 − 241.893 − 0 − (−17.229)] = −38.486
            YD = [(285 − 175.472 − 44.065 − 17.347)
                   1
               8   2
                  + (300 − 241.893 − 0.013 − 17.347)] = 44.432
         Both parents of these daughters are known, therefore n   = 2/(2 + 2a ) = 0.4167
                                                         2prog          1
         and u   = 1 for each daughter. Using Eqn 3.12, DYD for sire 1 is:
              prog
                                  ˆ
            DYD = [u n    (2YD - a ) + u n  (2YD - a )
                                                   ˆ
                 1   (4) 2(4)  4  2    (5) 2(6)  6  5
                                       ⎛               ⎞
                                                      )
                    + u n  (2YD - a )]  ⎜∑ (u prog  +  n 2 prog ⎟
                                   ˆ
                      (8) 2(8)  8  7   ⎝  3            ⎠
            DYD = [(1)(0.4167)(2(23.4005) − (−3.084)) +(1)0.4167(2(−38.486) − (−18.207))
                 1
                    + (1)0.4167(2(44.432) − 9.328)]/(3(1)(0.4167))
                  = 23.552
         Calculating the proof of sire 1 using Eqn 3.13 and a DYD of 23.552 gives a breeding
         value of 9.058. It is slightly lower than the breeding value of 10.148 from solving the
         MME, as the contribution of the granddaughter through cow 4 is not included.
         4.3  Model with Common Environmental Effects
         Apart from the resemblance between records of an individual due to permanent envi-
         ronmental conditions, discussed in Section 4.2, environmental circumstances can also



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