Cash Flows of Instituting Reproductive Programs

Cost vs Reward

Abstract

Economic returns associated with improved reproductive performance in dairy herds depend upon a wide variety of factors, including initial level of reproductive performance, future value of milk and of the calves produced, cash cost of replacement heifers, and many other factors. A variety of synchronization programs have been developed that may help improve the overall pregnancy rate (PR) of the herd, but the profitability of each program varies. A spreadsheet model was designed to compare the potential profitability of an improved estrus-detection program, an estrus-detection program combined with presynchronization and a single timed insemination, and a program relying completely upon timed insemination. Each of these scenarios was compared to a baseline program based upon estrus-detection and AI. The baseline herd was designed to have an estrus-detection risk and conception risk of approximately 50% and 31%, respectively, consistent with herds at or slightly above average reproductive performance in the US. Each of the modeled scenarios predicted better future returns than the initial baseline program, but the two involving timed AI also incurred substantial costs upfront. Adoption of either of these programs carries significant potential risk if not properly implemented and managed. Poor compliance to either timed AI program dramatically decreases both the resulting PR and the predicted economic returns. Dairies that implement programs such as these should work diligently to ensure that compliance levels consistently exceed 90% in order to maximize the profitability of either approach.