NBCEC Brown Bagger:
Economic Selection Index
Wade Shafer
American Simmental Association
Second Commandment of
Beef Cattle Breeding
Thou Shalt Select Superior Sires!
st
1 Step: Predicting Genetic Level
Use EPDs!
EPDs
Anything Else
Where Do We Go From Here?
MLK: 10
BKF: .01
WBSF: -.12
MCE:4
CE:2
MBL: .2
MW: 25
REA: .3
YW: 68
BW: 3.2
STAY: 18
TM: 27
YG: .2
CW: 20
WW: 35
Charting a Direction. . .
Typical Direction:
120
OUTPUT
100
80
60
40
20
0
1975
1980
1985
1990
1995
2000
2005
2010
More Desirable Direction:
120
100
PROFIT
80
60
40
20
0
1975
1980
1985
1990
1995
2000
2005
2010
How Do We Select for Profit?
Measure It!!!!
Profit = $Output - $Input
Measuring Profit
Profit = $Output - $Input
Economic Selection Index
Lanoy Hazel, 1943
Measuring Profit
Profit = $Output - $Input
= (Output Traits) (Prices) - (Input Traits) (Costs)
Calf Survival
Weaning Weight
Carcass Weight
Yield Grade
Marbling
Salvage Weight
Replacement Rate
Cowherd Intake
Feedlot Intake
Measuring
Profit
Biological Assumptions
Weaning weight: 550 lb
Feedlot gain; intake:
•Phase 1 (80 d): 2.51 lb/d; 26.86 lb/d
•Phase 2 (50 d): 2.92 lb/d; 21.9 lb/d
•Phase 3 (100 d): 3.81 lb/d;26.67 lb/d
Cow size: 1250 lb
Milk production: 5283 lb/lactation
Pregnancy rate: 84%
Dystocia heifers (direct): 20%
Dystocia heifers (maternal): 20%
Calf survival: 96%
Harvest weight: 1277.8 lb
Dressing: 62.9%
Carcass weight: 803.7 lb
Marbling score: 5.14
Yield grade: 2.8
Price & Cost Assumptions:




•
•
•

•
•
•
•
•
•
•
•
•
•
•
•
•
•
Salvage price: $.45/lb
Hay: $.0325/lb
Pasture: $25/ac/yr
Feed; fixed costs:
Phase 1: $.036/lb; $.51/d
Phase 2: $.039/lb; $.80/d
Phase 3: $.067/lb; $.80/d
Carcass prices:
Base: $121/cwt
< 550 lb: - $15/cwt
> 950 lb: - $7/cwt
> 1000 lb: - $17.50/cwt
Prime: + $8.00/cwt
High Choice: + $3.50/cwt
Choice: + $1.50/cwt
Select: - $11.00/cwt
Standard: - $20.00/cwt
YG 1: + $4.00/cwt
YG 2: + $2.00/cwt
YG 3: $0.00/cwt
YG 4: - $15.00/cwt
YG 5: - $20.00/cwt
Measuring Profit: Accounting for
Biological x Economic Interaction
High Yielding
YG1
$125
YG2
$123
YG3
$121
YG4
YG4
$106
$106
YG5
$101
Low Yielding
YG1
$125
YG2
$123
YG3
$121
YG4
$106
YG5
$101
ASA’s Economic Indexes
All-Purpose Index (API)a
Bred to all-aged females
Retain replacements
Terminal Index (TI)a
Bred to mature cows
No replacements retained
aGeneral Assumptions:
Sires mated to Angus cow herd
Integrated system selling on end product value
Prices/costs based on CattleFax prediction models
5 Year Assessment

Indexes have been integrated more
quickly than any technology we have
ever introduced

Indexes have the potential to
substantially increase the integration
level of animal breeding technology
Indexes are Highly
Marketable!
Keys to Marketability
simple
work
sexy
Producer Concerns:
Economic parameters are unpredictable:
Prices and costs tend to maintain equilibrium over time
Tend to be robust even when prices and costs not in equilibrium
Indexes aren’t “validated”:



Validated in other species
Straightforward accounting process… methodology is validated
Bottom line… high probability of being more effective than current
“seat-of-the-pants” approach
One size fits all… doesn’t fit me:
Population-wide indexes must necessarily cover entire production system
Few producers have data necessary to parameterize “customized” indexes
Strong correlations between “customized” indexes
Customized indexes aren’t as marketable…reducing integration