Page 7 - PMB-2018-Catalog-WEB-3

Genetic selection challenges

the Goal – making Genetic decisions todAY to increase future profitability.
Maximum profitability is achieved when the interaction of the often antagonistic genetic
traits are optimized Financially to support a succinct and defined business plan.

We have all been using EPDs to compare the probable genetic differences between cattle for more than 20 years.
Recognizing that these measurements and comparisons enabled selection decisions to be made which were almost
universally used to increase “performance,” the unanswered question is:

did this selection for higher performance increase profitability?

the answer is that it is impossible to tell as the ePds have largely concentrated on the
probable output results without considering the input costs!

Our challenge is to oPtiMiZe the interaction of the numerous genetic antagonisms to Yield the GReAtest PRoFit.

For example
Lower birth Weight may provide a higher percentage of calves weaned which increases revenue, but may also reduce
the weaning weights and hence the pounds available to sell. This decreases revenue.
more milk can provide more pounds to sell, increasing revenue, but usually requires higher feed intake which increases
cow maintenance expenses and may delay rebreeding which results in both higher feed costs and less pounds to sell.

Bio-Economic Indexes
An attempt to optimize the financial relationships between Input Costs and Output Revenues resulted in the calculation
of the Bio Economic Indexes created by the American Angus Association and others. While they are a step forward in
the evolution of Genetic Selection Tools, they do not appear to support any particular cow-calf producer’s Business Plans. In
addition, they may not include some of the expenses that are inherent with retaining ownership. Also, the economic
values that have been used in their calculations may not be relevant to the future markets. Thus, they may have limited
value in projecting the future economic impacts of alternative genetic decisions being made today.

The PMB $ Indexes
The epds for feed intake and rfi calculated by the American Angus Assn. have enabled PMB to create a group of $
Indexes which include both the values of growth and the offsetting input costs including feed intake differences and other
relevant expenses. While accurate prediction of future market values is impossible, the values used in the calculation of the
PMB $Indexes represent a combination of recent cash markets and futures projections. Feeder Calf Value in the PMB
$Values is $151/CWT. and Fed Cattle Value is $121/CWT. The absolute values are not important. WHat you Want to
note are the differences between selection alternatives.

These are our customer’s principal PMB Supporting $ Economic Index
business plans
1. All calves are sold at weaning $tsWc (Terminal Sire Weaned Calf)
2. Feeding - Incremental Profit Impact $fL (Feed Lot)
3. Ownership is Retained – Calves Sold on Grid $tp (Total Profit - this is the cumulative sum of
$TSWC, $FL and $GP)
Lifetime (This is projected from 100 calves)

Until a $ Replacement Heifer Index is available, keep the Milk EPD
near the breed average, (+24), and keep the frame moderate. Use the
RADG EPD to enhance Feed Efficiency and Profitability.

- 5 -