Bioeconomic evaluation of embryo transfer in beef production systems: III. Embryo lines for producing bulls

A model was developed for the economic evaluation of embryos for producing bull lines for use in commercial beef production. The fundamental concept underlying the model is that a cloned and sexed embryo of known genetic characteristics for beef traits is used to produce a bull. After reaching physiological maturity, the bull is used in natural matings. Equations relating feed energy requirements and growth rates based on NRC requirements and costs and returns discounted to present value allow investigation of expected economic merits of progeny from different embryo bull lines. The model has the flexibility to determine optimal embryo characteristics for different production environments. Model sensitivity to variation in progeny sex ratios, growth rates, yield and quality grades, and herd fertility characteristics was examined. Net present values (NPV) per embryo transferred were determined at the optimal marketing age of progeny produced from mating the bull to 30 cows per year for 5 yr. Relative to the lowest NPV of $18,209 for progeny with an expected quality grade of Select and yield grade of 4 at 400 d, increments in NPV ranged from $329 to $22,708 depending on differences in expected progeny carcass grade characteristics. The difference between NPV for 100% male and 40% male sex ratios was $7,518. The NPV differences between progeny growth rates of 1.6 and .9 kg/d holding herd conception rate constant at .9 and .5 were $8,311 and $4,611, respectively. The model evaluates relative economic values of embryo lines for producing bulls, accommodating interactions among progeny characteristics, and environments.