AchieveTM the Most Value from Your Dollar
By Diane Schnell
Education and Program Support Manager, CRI
What if ...? How many times have we asked ourselves this question? Whether we are deciding to use a new product, purchase a load of replacement heifers, try a new service or make a decision to do something different with the management of our business, this question passes through our minds. Would a tool that gives us the answers to these questions be valuable? A tool that would predict our future profit or loss based upon the decision we are about to make. Genex has such a tool, it is called AchieveTM.
Achieve is a science-based model that calculates the dairy producers return on investment for a particular semen product. It uses a farm's base inputs and looks at how a different semen choice may impact the profits of that herd. Semen choices include bulls with differing levels of genetics or fertility or using a sexed semen product. With this program, Genex can provide answers and recommendations that will help you maximize your profitability.
Achieve produces a one page report that summarizes the dollars lost or gained from a particular semen choice. It also provides the increase or decrease expected in parent averages of the next generation, number of replacements, calving difficulties, stillbirths and expected change in number of milking cows due to the effect on reproduction of the semen choice. Let's explain this by looking at some examples.
First, let's look at how Achieve shows how fertility can drive profit or loss on the dairy. Conception rate is an easy place to start since the decisions we make today, very quickly affect our profitability. Many dairy producers choose bulls based upon the bull's fertility level, measured by traits like ERCR, GenCheckTM or SynchSmartTM. One of the advantages of Achieve is that it can tell you just how much you can afford to sacrifice on conception versus some other trait that may or may not impact your bottom line as much.
Let's say you chose a group of bulls based solely on price or PTA Type. How closely did you look at the fertility level or genetic value of the bulls you bought? Does this group of bulls improve, maintain or hurt your herd's current conception rate? Does this group of bulls offer better genetics than you used in the past? With Achieve, we can tell you whether or not this purchase is a "good buy" or one you should avoid. It may also tell you that you could have afforded to spend more money on that group of bulls. In this case, that is money in your pocket.
Example 1 is a herd that is considering using a group of bulls with a slightly higher conception rate as measured by ERCR and slightly higher genetics as measured by LNM$. This proposal includes enough semen to breed the entire herd. As shown in Table 1, this herd has 1,000 cows, a current conception rate of 35% on cows and 60% on heifers. They currently pay $13 for semen for cows and $16 for semen for heifers. For the new group of bulls, they are willing to pay $2 more per unit. The bulls they used previously averaged +$400 LNM for cows and +$430 LNM for heifers. The new group averages +$410 LNM for cows and +440 LNM for heifers. The sex ratio remains constant because this proposal includes only conventional semen. This proposal of bulls results in a 1.5% increase in conception rate using ERCR values.
As you can see in Table 2 below, by only increasing the fertility level of the bulls by 1.5 points on ERCR and using a group of bulls that are genetically a little better, this herd has money to spend on other areas of their operation, approximately $22,760. Or said another way, they could have paid even more for that semen and broke even. From another perspective, if they can increase the conception rate on the cows and heifers, there will be even more money saved.
Notice the positive values in the age of calving savings at $2,310; days open savings at $7,872 and asset advantage of $10,650. Also notice how the parent average has increased by 2.0% and the number of replacements has improved by +3.5% in Example 1. This results in a positive genetic advantage of $5,232, under the economic returns section of the report. This value is shown in the LNM$ advantage in your next generation of heifers. This advantage is often harder to recognize, because the benefits of having calves on the ground with a higher genetic value is not realized by the dairy producer until they enter the milking string. For more information on the impact of genetics, try using the Genex RESULTSTM program to see how much value there is in using top genetics on your cows.
Another example that includes differing fertility levels is a comparison using a sexed semen product. We know using a sexed semen product usually results in a lower conception rate than conventional semen. So the question becomes, how much conception can we afford to sacrifice and still come out ahead? By plugging in various conception rates and sex ratios, we can determine what level of conception must be maintained to make a profit. This in turn, helps our reproductive consultants identify areas to focus on. Another Genex program, Reproductive Profit ManagerTM (RPM), compliments Achieve by identifying these areas to address.
Example 2 uses a 900-cow herd with a current conception rate of 65% on heifers. They currently pay $16 for semen and are willing to pay $45 for the new group of GenChoiceTM "sexed" bulls. The sex ratio is changed to 90% since that is the expected percentage of heifer calves. The proposal is to use GenChoice on all first services for heifers. Using sexed semen often results in a decreased conception rate of 10-20%. We used 17% for this example. The current value of calves was determined by the producer to be $150 for bulls and $600 for heifers. This herd is currently trying to expand their operation. They would like to do that from within rather than purchasing replacements. The current genetic level of the herd service sires is +$375 LNM. With the proposed package, the genetic level would be similar, at +$375 LNM.
As you can see in Example 2, it is a profitable decision to use GenChoice in this herd, a total impact of +$5,313. The calving difficulties and stillbirths are decreased resulting in a savings of $1,600. The usable sets of twin heifers are increased since there is less chance of bull/heifer sets of twins. The biosecurity advantage is positive; pointing out internal expansion is more profitable than purchasing animals from other sources. However, note the expected freshenings changes from 342 first lactation cows on the current base herd to 300 cows when using the GenChoice product. This number is lower in the comparative herd, meaning simply that because we have lowered conception rate, we will have fewer first lactation animals in the next year. This is offset though, by the value of having more heifers on the ground and the positive values in all other areas.
We truly do live by our mission statement at Genex. We want producers to make decisions that are profitable for their operations. This program, Achieve, can help you answer the "What if I did this ..." question. Knowing the answer before you actually make a change can benefit your business.
For more information on Achieve, see the article in the August 2007 issue of Horizons. (The article is located on the Genex Web site within the Learning Center.) There are consultants trained to run an Achieve report located throughout the United States. Ask your Genex representative to contact the consultant nearest you. We would be happy to run your "What if ..." questions through Achieve and help you identify profitable decisions.
Author Bio: As Education and Program Support Manager, Diane Schnell leads a team of trainers responsible for everything from artificial insemination training to support programs training to new employee training. Programs such as ResultsTM, RPMTM, MAP and AchieveTM are managed within Support Services as a service to both the members and customers and the Genex marketing division.
