Business analysis of IRT, Visual observation, and Ovsynch as breeding strategies in Alberta dairies

The dairy industry is searching for new technologies to address low (<50%) estrus detection. However, the lack of information on the potential economic benefits regarding new technology implementation has led some dairy producers to continue using conventional estrus detection methods (e.g. visual observation of standing to be mounted). The objective of this study was to compare the costs of infrared thermography (IRT), visual observation (VO) and ovulation synchronization (Ovsynch: OVS) as breeding strategies at different accuracy levels (Sensitivity [Se], Specificity [Sp]) and pregnancy rates (PR). The costs associated with Breeding, Feeding, Operation Costs, Return to Equity and Culling Risk per estrus detection rate (ER; 30-100%, conception rate for OVS; 30-100%), PR [PR per Parity group; 1-2 (50%), 3-4 (43%), and >4 (41%)], and ER accuracy determined the potential financial benefit of each breeding method for a representative farm. Breeding Cost results (Canadian dollars per cow; CAD/cow) showed a higher cost of OVS (138.99) as compared to VO (115.78) and IRT (127.69). Pregnancy Costs were affected by Breeding Cost; however, ER had a significant effect on PR expense for each method, IRT (ER; 30%: 210.38; 100%: 132.19), VO (ER; 30%: 205.93; 100%: 129.39), and OVS (ER; 30%: 247.21; 100%: 155.33). The minimum Se level with a positive Financial Effect for IRT and VO was 60% with a Sp of 100%, and for the OVS was Se 65% and Sp 100%. However, when the Se was 100% a positive Financial Effect was observed with a minimum Sp of 85% for IRT and 75% for VO. Culling Risk was reduced if ER increases differently depending on the parity group. Implementing of IRT as an estrus detection method yields a competitive breeding cost compared to VO and OVS. Further, breeding methods must accomplish at least ∼60% accuracy to have a positive net return.