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Risk aversion affects economic values of blue fox breeding scheme
J Peura1, R Kempe2, I Strandén2
1Department of Animal Breeding and Genetics, Swedish University of Agricultural Sciences, Uppsala, Sweden.
Summary
This study simulated Finnish blue fox farm economics, revealing that risk significantly impacts trait economic values. Litter loss, size, pregnancy, and eye infection are key traits, emphasizing risk consideration in breeding programs.
Area of Science:
- Animal Science
- Agricultural Economics
- Quantitative Genetics
Background:
- Finnish blue fox farming profitability is influenced by various production and biological factors.
- Incorporating risk aversion is crucial for accurate economic evaluations in livestock breeding.
- Previous models may not fully capture the economic impact of risk on trait selection.
Purpose of the Study:
- To simulate the profit and production of an average Finnish blue fox farm.
- To calculate risk-rated economic values for key production and health traits.
- To assess the impact of risk aversion on the relative economic importance of these traits.
Main Methods:
- A deterministic bio-economic farm model was employed for simulation.
- The Arrow-Prat absolute risk aversion coefficient and profit variance were used to quantify risk.
- Risk-rated economic values were computed for traits including pregnancy rate, litter loss, litter size, pelt characteristics, feed efficiency, and eye infection.
Main Results:
- Economic values for traits decreased with higher absolute risk aversion.
- Litter loss, litter size, pregnancy rate, and eye infection exhibited the highest economic values.
- Sensitivity analysis indicated that selection for eye health is highly dependent on the proportion of culled infected animals.
Conclusions:
- Risk factors significantly alter the relative importance of traits in blue fox breeding schemes.
- Traits such as litter loss, size, pregnancy, and eye infection have substantial economic implications under risk.
- Integrating risk assessment into breeding programs is essential for optimizing blue fox farm profitability and sustainability.
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