Breeding goals and economic values for Nellore cattle in a full-cycle production system

The objective of this study was to develop a bio-economic model for the estimation of economic values of economically important traits in a full-cycle beef cattle production system. The bio-economic model calculated economic values by simulating the impact of changes in the profit of the system consisting of a 1% increase in each trait of the breeding objective, while the other traits were kept constant. The bio-economic model was effective in estimating the sources of revenues and expenses of the production system. The estimated economic values were, in the order of importance for the full-cycle system, R$ 3.69 for male slaughter weight, R$ 3.63 for male weaning weight, R$ 3.58 for weaning rate, R$ 3.40 for female slaughter weight, R$ 2.30 for female weaning weight, and R$ 0.13 for mature cow weight. The results showed that all traits evaluated in the full-cycle system had positive economic impact, indicating that selection would increase profitability maximizing the expected response for the traits of the breeding goal.

Keywords:
bio-economic model; economic weights; genetic selection; productive traits

Authorship

Heverton Luis Moreira

Universidade de São Paulo, Faculdade de Medicina de Ribeirão Preto, Departamento de Genética, Avenida Bandeirantes, 3900, 14049-900, Ribeirão Preto, São Paulo, Brazil. Universidade de São PauloBrazilRibeirão Preto, São Paulo, BrazilUniversidade de São Paulo, Faculdade de Medicina de Ribeirão Preto, Departamento de Genética, Avenida Bandeirantes, 3900, 14049-900, Ribeirão Preto, São Paulo, Brazil.

Rodrigo Pelicioni Savegnago

Instituto de Zootecnia, Centro Avançado de Pesquisa de Bovinos de Corte, Rodovia Carlos Tonani, Km94. Cx. Postal 63, 14174-000, Sertãozinho, São Paulo, Brazil. Instituto de ZootecniaBrazilSertãozinho, São Paulo, BrazilInstituto de Zootecnia, Centro Avançado de Pesquisa de Bovinos de Corte, Rodovia Carlos Tonani, Km94. Cx. Postal 63, 14174-000, Sertãozinho, São Paulo, Brazil.

Luara Afonso de Freitas

Raysildo Barbosa Lôbo

Associação Nacional de Criadores e Pesquisadores, Rua João Godoy, 463, 14020-230, Ribeirão Preto, São Paulo, Brazil. Associação Nacional de Criadores e PesquisadoresBrazilRibeirão Preto, São Paulo, Brazil Associação Nacional de Criadores e Pesquisadores, Rua João Godoy, 463, 14020-230, Ribeirão Preto, São Paulo, Brazil.

Luiz Antonio Framartino Bezerra

Claudia Cristina Paro de Paz ^* *Author for correspondence. E-mail: claudiapaz@iz.sp.gov.br

http://orcid.org/0000-0001-6261-3273

*Author for correspondence. E-mail: claudiapaz@iz.sp.gov.br

SCIMAGO INSTITUTIONS RANKINGS

Tables

Tables (7)

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Table 1
Performance parameters used in the final composition of the herd to obtain economic values for Nellore cattle.

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Table 2
Source of income and expenses in the production system for Nellore cattle.

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Table 3
Bonus values for Nellore cattle.

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Table 4
Economic indicators of costs and revenues in the complete cycle system of beef cattle.

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Table 5
Economic indicators of profitability of the complete cycle system of beef cattle.

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Table 6
Lucrative performance in basic and simulated situations and estimates of economic values for studied traits for Nellore cattle.

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Table 7
Economic performance in basic and simulated situation and estimation of economic values under the natural Nellore program payment system.

Table 1 Performance parameters used in the final composition of the herd to obtain economic values for Nellore cattle.

Performance parameters	Mean
Annual rate of cow discard (%)³	22
Annual bullfighting discard rate (%)⁵	25
Cow conception rate (%)¹	78
Heifer conception rate 24 months (%)⁴	85
Average birth rate %	79
Number of females / bull³	30
Mortality rate from 0 to 7 months (%)¹	4
Mortality rate above 12 months¹	1
Cow shelf life (years) ⁵	5
Mature cow weight - MCW (kg)²	450
Average weight of bull breeder - (kg)⁵	700
Traits	Male	Female
Average weaning weight (kg)²	190	176
Average weight at 365 days (kg)²	252	228
Average weight at 450 days (kg)²	297	263
Average weight at slaughter (36 months) (Kg)²	510	450
Carcass yield (%)⁴	55	48

¹
Adapted from Euclides Filho (2008Euclides Filho, K. (2008). A pecuária de corte no cerrado brasileiro. In: F. G. Faleiro, & A. L. F. Neto, Savanas: desafios e estratégias para o equilíbrio entre sociedade, agronegócio e recursos naturais. Planaltina, DF: Embrapa Cerrados.); ²Lôbo et al. (2013Lôbo, B., Bezerra, L.A.F., Oliveira, H.N., Freitas, M.A.R., Penna, V.M., Vozzi, P.A., … Oliveira, H.N. (2013). Avaliação Genética de Touros das Raças Nelore, Guzerá, Brahman e Tabapuã . Ribeirão Preto, SP: ANCP.); ³Anuário da Pecuária Brasileira (ANUALPEC, 2013Anuário da Pecuária Brasileira [ANUALPEC]. (2013). Anuário da Pecuária Brasileira (Vol. 1, 20th ed.). São Paulo, SP: Instituto FNP.); ⁴Jorge Júnior, Cardoso, and Albuquerque (2007Jorge Júnior, J., Cardoso, V. L., & Albuquerque, L. G. (2007). Breeding goals and economic values for beef cattle production systems in Brazil. Revista Brasileira de Zootecnia, 36(5), 1549-1558. doi: 10.1590/S1516-35982007000700013.
https://doi.org/10.1590/S1516-3598200700... ); ⁵Empresa Brasileira de Pesquisa Agropecuária (Embrapa, 2013Empresa Brasileira de Pesquisa Agropecuária [Embrapa]. (2013) Gado de corte. Recovered from: http://www.embrapa.br/a_embrapa/unidades-de-pesquisa-e-de-servicos/unidades-de-pesquisa -de-produtos/cnpgc/.
http://www.embrapa.br/a_embrapa/unidades... ).

Table 2 Source of income and expenses in the production system for Nellore cattle.

Traits	Source	Value (R$)
Heifers 36 months empty ¹ (arroba)	Income	132.00
Fat cow ¹ arroba	Income	128.00
Discard bull ¹ (arroba)	Income	112.00
Calf 36 months fat ¹ (arroba)	Income	142.00
Expenditure on pasture training and reform ² (R$ ha^-1)	Expenses	964.00
Depreciation of pasture (R$ ha^-1)	Expenses	96.40
Average expenditure on mineral salt ³ (R$ kg^-1)	Expenses	1.38
Average expenditure on protein salt ³ (R$ kg^-1)	Expenses	1.17
Average expenditure with veterinarian (R$ head^-1)	Expenses	4.30

¹Average price commercialized in SP, MT, MS e GO (ANUALPEC, 2013Anuário da Pecuária Brasileira [ANUALPEC]. (2013). Anuário da Pecuária Brasileira (Vol. 1, 20th ed.). São Paulo, SP: Instituto FNP.), ²Price of training and reform (ANUALPEC, 2013Anuário da Pecuária Brasileira [ANUALPEC]. (2013). Anuário da Pecuária Brasileira (Vol. 1, 20th ed.). São Paulo, SP: Instituto FNP.), ³Budget with delivery of Matsuda company.

Table 3 Bonus values for Nellore cattle.

Lot classification index (%)	Nellore steer	Nellore heifer	Nellore cow
0 - 49.9	0.0%	0.0%	0.0%
50 - 69.9	+ 1.0%	+ 2.0%	+ 2.0%
70 - 79.9	+ 1.5%	+ 3.0%	+ 3.0%
Above 80	+ 2.0%	+ 4.0%	+ 4.0%

Source: http://www.nelore.org.br.

Table 4 Economic indicators of costs and revenues in the complete cycle system of beef cattle.

Revenues / Costs	Values	% Of revenues / Costs
Total revenue with discard cows	R$ 418,164.78	20.52
Total revenue with discard bulls	R$ 27,402.02	1.34
Total revenue with heifers 36 months	R$ 471,378.83	23.13
Total revenue with steers 36 months	R$ 1,120,795.76	55.00
Total	R$ 2,037,741.40	100.00
Fixed labor force	R$ 167,194.36	10.20
Taxes	R$ 44,438.00	2.71
Depreciation	R$ 16,028.85	0.98
Total	R$ 227,661.21	13.89
Pasture	R$ 1,042,432.17	63.60
Protein mineral salt	R$ 229,022.77	13.97
Mineral salt	R$ 72,592.51	4.43
Veterinarian	R$ 21,993.49	1.34
Other expenses	R$ 45,437.89	2.77
Total	R$ 1,411,478.84	100.00
Effective operational cost*	R$ 1,623,111.20	-----
Total operation cost **	R$ 1,639,140.05	-----

*Effective operational cost is composed of variable costs and part of the fixed cost, where depreciation is disregarded. ** Total operational cost is composed of the sum of the fixed cost and variables adding the depreciation.

Table 5 Economic indicators of profitability of the complete cycle system of beef cattle.

Economic indicators of property in study
Gross margin	R$ 414 630.20
Liquid margin	R$ 398 601.35
Total profit	R$ 398 601.35
Profitability	19.56%

Table 6 Lucrative performance in basic and simulated situations and estimates of economic values for studied traits for Nellore cattle.

Traits	Final profit, R$	Initial profit, R$	Marginal profit, R$	Genetic gain, kg	Economic values, R$
MCW	8 127.32	8 004.70	122.62	980.07	0.13
MSW	891 659.62	882 930.50	8 729.11	2 365.73	3.69
FSW	269 678.11	266 033.48	3 644.63	1 071.74	3.40
WR	1 166, 299.36	1 148 963.99	17 335.37	4 838.72	3.58
MWW	887 416.57	882 930.50	4 486.06	1 235.08	3.63
FWW	266 831.15	266 033.48	797.67	346.15	2.30

Mature cow weight (MCW); male slaughter weight (MSW); female slaughter weight (FSW); weaning rate (WR); male weaning weight (MWW); female weaning weight (FWW).

Table 7 Economic performance in basic and simulated situation and estimation of economic values under the natural Nellore program payment system.

Traits	Final profit, R$	Initial profit, R$	Marginal profit, R$	Genetic gain, kg	Economic values, R$
Economic value for the natural Nellore system (50 - 59% of the lot)
MCW	16 574.25	16 368.00	206.25	980.07	0.2
MSW	902 967.22	894 138.46	8 828.76	2 365.73	3.73
FSW	279 203.62	275 461.06	3 742.57	1 071.74	3.49
WR	1 187 256.25	1 169 599.52	17 656.73	4 838.72	3 65
MWW	898 682.99	894 138.46	4 544.52	1 235.08	3.68
FWW	276 289.19	275 461.06	828.13	346.15	2.39
Economic value for the natural Nellore system (60 - 79% of the lot)
MCW	20 797.71	20 549.65	248.07	980.07	0.25
MSW	908 621.03	899 742.44	8 878.59	2 365.73	3.75
FSW	283 966.38	280 174.85	3 791.53	1 071.74	3.54
WR	1 197 734.69	1 179 917.29	17 817.41	4 838.72	3.68
MWW	904 316.19	889 742.44	4 573.75	1 235.08	3.70
FWW	281 018.21	280 174.85	843.36	346.15	2.44
Economic value for the natural Nellore system (above 80% of the lot)
MCW	25 021.18	24 731.29	289.88	980.07	0.30
MSW	914 274.83	905 346.42	8 928.41	2 365.73	3.77
FSW	288 729.14	284 888.63	3 840.50	1 071.74	3.58
WR	1 208 213.14	1 190 235.05	17 978.08	4 838.72	3.72
MWW	909 949.40	905 346.42	4 602.98	1 235.08	3 73
FWW	285 747.23	284 888.63	858.59	346.15	2.48

Mature cow weight (MCW); male slaughter weight (MSW); female slaughter weight (FSW); weaning rate (WR); male weaning weight (MWW); female weaning weight (FWW).

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Breeding goals and economic values for Nellore cattle in a full-cycle production system

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[1] *Author for correspondence. E-mail: claudiapaz@iz.sp.gov.br