Expected value of crossbred dairy cattle artificial insemination breeding strategies in virgin heifers and lactating cows

Research on sexed semen breeding techniques has largely focused on purebred cattle production systems and little work has been done evaluating sexed semen use in crossbred dairy cattle. Complementing a crossbreeding reproduction strategy with sexed semen artificial insemination (AI) has the potential to increase profit potential of sexed semen technology in the short and long run. The objective of this project was to estimate and compare the expected net present value (NPV) of reproduction management programs considering several conventional and sexed semen breeding strategies, cow ages, and breed compositions. While the potential benefits of sexed semen are varied, it is important to note that the focus of this study is on the economic returns to the breeding program. This is not a life-cycle analysis, and therefore, only the sexed semen costs and returns that directly impact the returns to the breeding program are considered. Specifically, a NPV model that incorporates dystocia and stillbirth costs, in addition to improved fertility of crossbred cattle (over purebred cattle), directly into the expected NPV calculation is developed. Increased use of crossbred dairy cattle in the United States make this research particularly timely and relevant. Consistent with previous research, results indicate that pure conventional semen AI and a mixed strategy with one sexed semen AI followed by conventional semen were generally the preferred breeding strategies in terms of expected NPV across all breeds and dam ages evaluated. Similarly, our results also support previous findings that the expected NPV of breeding programs for virgin heifers were consistently higher than lactating cows. In terms of breeds, the crossbreed scenarios generally produced higher expected NPV than scenarios for purebred Holsteins. The most influential factors resulting in these higher returns were the higher cumulative pregnancy rates associated with the crossbreds. Reproductive benefits of crossbred dairy cattle may be able to alleviate some economic pressure currently associated with poor dairy reproduction with AI breeding strategies (especially those incorporating sexed semen). However, it is important to note the likely tradeoffs associated with improvements in fertility (e.g., reduced milk production), the consideration of which is necessary to maximize whole farm profitability.