Effects of beef semen and beef embryo strategies on profitability: Economics of using beef semen and beef in vitro-produced embryo transfer in Jersey herds

Dairy herds have adopted sexed semen (SS) and beef semen (BS) to control heifer inventory and increase calf sales revenue. Beef in vitro-produced embryo transfer (beef IVP-ET) may be an alternative to increase calf sales revenue. Additionally, raising those Jersey-beef crossbred or pure beef animals in a dairy system may be a new source of revenue. We aimed to evaluate the effects of breed strategies combining dairy conventional semen (CS), SS, BS, and beef IVP-ET on herd dynamics and profitability with strategies of marketing those animals at 1 d old or raising them to a weight of 180 kg. A Markov chain model was developed to maximize the profitability of Jersey herds by changing the number of dairy heifers sold at birth and the culling rate of cows in their third parity or greater. The model presents inputs on the reproductive and productive performance of heifers and cows over time. The last year's data (year 10, steady state) was used to calculate accrual operational cost and revenue per cow per year. We varied the breeding strategy by breeding order and parities, the embryo transfer cost ($85 or $170), the pure beef calf market price ($200 or $300), and the marketing strategy. A total of 8 scenarios plus a default scenario were simulated. Overall, the proportion of SS use was 47.3 f 0.6% (mean f SD). For the scenarios replacing all CS breedings with BS breedings, the percentage of BS used was 52.3 f 0.6%. When beef IVP-ET was used, the percentages of BS and beef IVPET used were 22.4 f 0.1% and 31.0 f 0.1%, respectively. We observed that when we compared the combination of BS and dairy SS with the default scenario, the production of purebred Jersey male calves was reduced by 83.5%, and profit per cow per year was increased from $113.50 to $203.30. When a beef IVP-ET cost of $85 per transfer was used (scenarios 2 and 3), profit per cow per year was $145.50 and $176.20 for pure beef calf prices of $200 and $300, respectively. In scenario 4, with a beef IVP-ET cost of $170, the lowest profit ($52.90 per cow per year) was found when marketing 1-d-old pure beef calves at $200. The highest profit was achieved for the scenario of raising the Jersey-beef crossbred animals to 180 kg ($232.90, scenario 6), followed by scenario 7 ($222.90, using the combination of BS, dairy SS, and beef IVP-ET) with an embryo transfer cost of $85. Under the current market conditions, combining SS and BS in the reproductive program was a feasible economic opportunity for Jersey herds, yielding the highest net return. The adoption of beef IVP-ET in a reproductive program can potentially increase profit per cow per year, but its profitability will depend on the beef IVP-ET pregnancy cost, the pure beef market price, calf performance, and herd reproductive performance. In conclusion, raising the Jersey-beef crossbred calves may be a profitable strategy, and dairy producers need to evaluate the best option to invest in, as it will take extra risk to produce high-quality animals.