Cost-benefit evaluation of artificial insemination for genetic improvement of wool-producing sheep

The financial costs and benefits associated with the use of artificial insemination (AI) in commercial flocks are evaluated. Benefits are calculated in terms of net present values after summing the discounted value of benefits over 20 years. Two breeding strategies are evaluated. With the first, AI is used to produce flock ewes and wethers. The method is unlikely to be profitable unless high breeding value rams are available for AI programs with fresh semen. With the second, AI is used to produce home-bred rams, which in turn sire flock ewes and wethers. This approach is more likely to be profitable. The cost of AI per lamb weaned from laparoscopic AI programs is about $100. Benefits exceed this cost for rams of very high merit when wool prices are moderate or higher. Flock structure has a significant effect on the benefits. Flocks with low wether retention rates have benefits half that of flocks that retain most wethers to 6 years of age. AI with purchased semen also provides benefits to risk management for owners of commercial flocks who wish to breed their own replacement flock rams.