We’re $PROFIT TM Driven... Why $Profit: Today, ranchers have to make proper genetic decisions to improve profitability and the return on their investment. However, most seedstock providers confuse potential customers with too many EPDs. Most Angus have over 25 EPDs plus DNA rank - ings are also often provided. While this data is useful, it is also very hard to analyze. This makes buying the best bull very difficult. Every bull is good on some traits and weak on others. The challenge is figuring out how each of those traits is going to impact your bottom line. Buyers try to determine which bull will make the most money from birth to slaughter, but most of the time, they end up guessing. When Boeing Airlines starts to build a plane, do you think they guess how it is going to fly? How much fuel it is going to use? How many pounds of cargo it can carry? No, they don’t guess – instead they use their knowledge to build a computer pro - gram the simulates the outcomes based on the design of the plane that they have in mind. This same simulation technology can be used in beef cattle to improve selection decisions. How $Profit works: $Profit is based on results from an advanced simulation model, developed by Dr. Steve Miller (now the Director of Genetic Research at the American Angus Association) in conjunction with other geneticists at Guelph University. The simulation de - velops partial budgets that look at how a genetic factor influences cost and/or revenue. The model factors in all of the effects on both income and expense to come up with a net profit figure for each bull. $Profit assumes that the average commercial bull will have 100 progeny over its lifetime. The model assumes that you keep 30% of your heifers as replacements and that you retain ownership on the remainder of the calves through harvest. Further, it assumes that you will sell on a grid with premiums for quality grade and yield grade. Most importantly, $Profit allows you to easily compare any two bulls and calculate the difference in profit that they are expected to generate in your herd. Let’s compare a $14,000 $Profit bull to $10,000 $Profit bull. The predicted difference be - tween the bulls is $4,000 or about $40 per calf. For comparison, the average 2015 Angus bull has a $Profit of approximately $9000. What traits are included in $Profit: $Profit includes nearly every trait that impacts profitability. The effect of most traits on profit is fairly simple to understand. Here is the list of what is included and its effect: Revenue Traits Calving ease = more calves means more revenue.
Weaning & yearling EPD = more weight equals more revenue. Fertility (days to conception) = more weight and more calves. Carcass weight = worth more up to 477 kg. Marbling = valued based on grid premiums. Ribeye area = value as impacts yield grade. % Retail Product = more yield is more salable meat. Cost Traits Cow mature size = bigger eats & costs more. Cow intake = more intake eats & costs more. Feedlot feed efficiency = more feed per kg of gain means more cost.
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