Comparison of economic returns among genetic evaluation strategies in a 2-tiered Charolais-sired beef cattle production system.

The objective of this study was to estimate economic returns and costs associated with 4 scenarios of genetic evaluation that combine genotypes, phenotypes, and pedigree information from a vertically integrated purebred (PB) and commercial (CM) beef cattle system. Inference was to a genetic evaluation for a production system producing Charolais terminal sires for 10,000 CM cows. The first genetic evaluation scenario, denoted PB_A, modeled a genetic evaluation in which pedigree information and phenotypes are available for PB seedstock animals. Scenario PB_H contained the same information as PB_A with the addition of 25K density (GeneSeek Genomic Profiler LD) single nucleotide polymorphism (SNP) genotypes from PB animals. Scenario PBCM_A contained pedigree records and phenotypes from PB and CM cattle. Scenario PBCM_H contained phenotypes, pedigree, and genotypes from the PB and CM animals. Estimates of prediction error variance, (co)variance, and selection index parameters were used to estimate accuracy of selection candidates (rTI) and genetic gain resulting from selection on an economic index in US dollars (ΔG). Annual costs and incomes were used to determine the 30-yr cumulative net present value (CNPV) per CM calf resulting from selection in these genetic evaluation scenarios. Adding genotypes and CM production phenotypes to genetic evaluation increased the rTI of selection candidates and ΔG across all 4 scenarios. Scenario PBCM_H produced the highest annual ΔG in the PB herd at US$11.91 per head. Including CM phenotypes and parentage testing in the genetic evaluation increased the time to breakeven from 12 yr in PB_A to 19 years in PBCM_A after accounting for the cost of that information. Adding CM phenotypes and genotypes increased the breakeven time from 12 yr in PB_H to 18 yr in PBCM_H. Scenario PB_H produced the highest 30-yr CNPV per slaughtered CM calf at US$371.16. These results using field data indicate that economically relevant rTI and ΔG can be realized by adding 25K SNP genotypes and CM phenotypes to genetic evaluation, but the additional cost of that data significantly delays the economic return to the enterprise.