NBCEC Brown Bagger:

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NBCEC Brown Bagger Economic Selection Index
Wade Shafer American Simmental Association
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Second Commandment of Beef Cattle Breeding
Thou Shalt Select Superior Sires!
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1st Step Predicting Genetic Level
Use EPDs!
Anything Else
EPDs
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Where Do We Go From Here?
BKF .01
MLK 10
MCE4
WBSF -.12
CE2
MBL .2
REA .3
MW 25
YW 68
BW 3.2
STAY 18
YG .2
TM 27
WW 35
CW 20
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Charting a Direction. . .
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Typical Direction
Output
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More Desirable Direction
Profit
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How Do We Select for Profit?
Measure It!!!!
Profit Output - Input
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Measuring Profit
Profit Output - Input
Economic Selection Index
Lanoy Hazel, 1943
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Measuring Profit
Profit Output - Input
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(Output Traits)
(Input Traits)
(Prices)
(Costs)
Replacement Rate Cowherd Intake Feedlot Intake
Calf Survival Weaning Weight Carcass Weight Yield
Grade Marbling Salvage Weight
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Measuring Profit

• Price Cost Assumptions
• Salvage price .45/lb
• Hay .0325/lb
• Pasture 25/ac/yr
• Feed fixed costs
• Phase 1 .036/lb .51/d
• Phase 2 .039/lb .80/d
• Phase 3 .067/lb .80/d
• Carcass prices
• Base 121/cwt
• lt 550 lb - 15/cwt
• gt 950 lb - 7/cwt
• gt 1000 lb - 17.50/cwt
• Prime 8.00/cwt
• High Choice 3.50/cwt
• Choice 1.50/cwt
• Select - 11.00/cwt
• Standard - 20.00/cwt
• YG 1 4.00/cwt

• Biological Assumptions
• Weaning weight 550 lb
• Feedlot gain intake
• Phase 1 (80 d) 2.51 lb/d 26.86 lb/d
• Phase 2 (50 d) 2.92 lb/d 21.9 lb/d
• Phase 3 (100 d) 3.81 lb/d26.67 lb/d
• Cow size 1250 lb
• Milk production 5283 lb/lactation
• Pregnancy rate 84
• Dystocia heifers (direct) 20
• Dystocia heifers (maternal) 20
• Calf survival 96
• Harvest weight 1277.8 lb
• Dressing 62.9
• Carcass weight 803.7 lb
• Marbling score 5.14
• Yield grade 2.8

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Measuring Profit Accounting for Biological x
Economic Interaction
High Yielding
YG3 121
YG2 123
YG4 106
YG5 101
YG4 106
YG1 125
Low Yielding
YG2 123
YG3 121
YG4 106
YG5 101
YG1 125
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ASAs Economic Indexes
All-Purpose Index (API)a

• Bred to all-aged females
• Retain replacements

Terminal Index (TI)a

• Bred to mature cows
• No replacements retained

• aGeneral Assumptions
• Sires mated to Angus cow herd
• Integrated system selling on end product value
• Prices/costs based on CattleFax prediction models

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5 Year Assessment

• Indexes have been integrated more quickly than
  any technology we have ever introduced
• Indexes have the potential to substantially
  increase the integration level of animal breeding
  technology

Indexes are Highly Marketable!
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Keys to Marketability
sexy
work
simple
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Producer Concerns
Economic parameters are unpredictable

• Prices and costs tend to maintain equilibrium
  over time
• Tend to be robust even when prices and costs not
  in equilibrium

Indexes arent validated

• Validated in other species
• Straightforward accounting process methodology
  is validated
• Bottom line high probability of being more
  effective than current seat-of-the-pants
  approach

One size fits all doesnt fit me

• Population-wide indexes must necessarily cover
  entire production system
• Few producers have data necessary to parameterize
  customized indexes
• Strong correlations between customized indexes
• Customized indexes arent as marketablereducing
  integration