Albert De Vries: Associate Professor, Department of Animal Sciences, University of Florida. Albert De Vries is known within the academic community for research in optimization of culling and replacement strategies, statistical process control and economics of reproduction.

Steve Bodart: Senior Business Consultant and Dairy Industry Specialist, Lookout Ridge Consulting. Steve Bodart has provided dairy financial and consulting services to countless herds through expansion and facility design, inventory and budget management.

Pete Weber: National Account Manager, Genex. Pete Weber helps Genex members and customers maximize profitability by realizing their herd potential through Genex programs such as Results^TM and Achieve^TM.

Genex looked to professionals in the academic and financial sectors to get their inputs on the economics of utilizing GenChoice as part of a breeding program. With added expertise from Pete Weber, consultant with Genex, we have compiled these thoughts to allow you to analyze GenChoice from all perspectives to be sure your herd and breeding program are ready to successfully implement GenChoice.

De Vries Dairy producers should get good conception rates with conventional semen before sexed semen becomes a viable option. The ability to rank animals for genetic merit is also advantageous. Producers that can raise heifers for a low cost will benefit more from the use of sexed semen.

Bodart: No. Herd management systems need to be in place in order to capitalize on the benefits of sexed semen. Sexed semen will not compensate for poor management.

Weber: It is hard to include all herds in one group. Most herds will benefit from the use of GenChoice on females with the highest Lifetime Net Merit (LNM) index. This is a great way to create more top cows for the next generation.

De Vries: Herds with good conception rates with conventional semen will see better results with sexed semen. Good conception rates with sexed semen make the product much more economically feasible. So good reproduction protocols, cow comfort and nutrition all eventually affect the economic feasibility.

Bodart: Poor heat detection compounded with a slightly decreased conception rate (from sexed semen) can prolong the age at first calving, an important benchmark to be aware of. Adequate facilities or custom heifer options should also be considered. If heifers are already cramped, their optimum performance may not be realized.

Weber: The economics of sexed semen are more favorable if:

1. Heifer conception rates are 50 percent or higher, and conception rates in cows are 30 percent or higher (with conventional semen).

2. The herd has low stillbirth rates and low calf mortality. We need to properly raise more heifer calves.

3. Is the herd planning on growing? Using the Results^TMprogram from Genex, we regularly document that homegrown heifers outperform purchased heifers. I recommend all herd owners study the effect of genetics using Results.

4. Does the herd identify its genetically superior females? If so, the herd will benefit most from more heifers from these top cows.

De Vries: A major driver of the economic value of sexed semen is the difference in value between a heifer calf and a bull calf. If you can raise heifers cheaper than what you pay to purchase them, the value of sexed semen is greater. Biosecurity issues and information on genetic merit affect this difference as well. Generally, heifer prices decrease when milk prices are low. The question then is what the heifer price will be three years from today. Today's milk prices should not be a major factor when considering the use of sexed semen. Obviously the price of sexed versus conventional semen needs to be considered as well.

Bodart: The big question is what is the purpose for the additional heifers? Does this align with the goals of the business? These factors need to be taken into account to evaluate the economic benefit of utilizing sexed semen.

Weber:

What value does this herd place on heifer calves versus bulls? Does this difference outweigh the investment in GenChoice?

As corn prices increase, bull calf prices have downwardpressure making sexed semen a better investment.

As milk prices increase, heifer calf prices have upwardpressure, making sexed semen a better investment.

De Vries: Success is defined as getting cows pregnant and calving from sexed semen. Some success will also come from using sexed semen on the genetically better animals. Good fertility results and animal identification with sire identification are important.

Bodart: Two management areas can have an impact on success with sexed semen. All technology works best in a well-managed system. Efficient herd management will help to capture success with sexed semen. Accurate management records help ensure sexed semen is only used on first and second service heifers and avoided in animals with a history of health-related issues.

Weber: The success of a sexed semen program is largely influenced by conception rates. Success follows when excellent artificial insemination (A.I.) technique (by a professional A.I. technician) is combined with:

• Cattle in a strong standing heat
• Cattle in adequate body condition
• Cattle with strong foot and udder health
• Cattle with high values for Daughter Pregnancy Rate(DPR). The following chart shows data from six herds using GenChoice on lactating cows. It shows cows sired by positive DPR bulls conceived at a 36 percent rate, while cows sired by a negative DPR bull conceived at a 25 percent rate!

De Vries: Let's assume the dairy wants to produce enough heifer calves to only replace the culled cows. The question is which animals should produce these heifer calves? Usually the heifers are the genetically best animals, and they have higher conception rates than cows, so many of them will remain candidates for sexed semen. However, genetically better cows, especially early in lactation and producing well may also be candidates. Essentially, the genetic progress on the female side must be weighed against the cost of the lower conception rate.

Bodart: Maintain the herd size through internal growth. If planning to expand in two to three years, utilizing sexed semen will allow part of the growth to occur from a known genetic background.

Weber: Three ways come to mind.
First, cull more aggressively (less profitable cows,hard breeders, etc.).
Second, use sexed semen to get more heifer calvesout of the best cows.
Third, consider new alternatives to breed lower-end cows, with potentially more profit from crossbred calves.

De Vries:Another factor is the availability of sexed semen from elite sires. Elite sires may not have sexed semen available. When sexed semen from a lower genetic merit sire is used, the chances of a heifer calf increase, but the heifer calf will have a lower genetic merit than if her sire was an elite sire. Obviously price of sexed semen needs to be considered as well.

Bodart: As the result of the decrease in conception rate, the age of first calving tends to slightly increase when utilizing sexed semen. If heifers are already older than your desired goal, implementing change to decrease the age of first calving will be paramount before implementing sexed semen. Other negative factors to consider are the weight of the heifers and the potential for over conditioned heifers if the age of first calving is extended by 30-60 days.