Net Margins from Different Fractions of Holstein Genes in Venezuelan Herds Based on Performance Estimates by Producers and Advisors

¹ Department of Animal Science, Cornell University, Ithaca, NY 14853

The objective was to estimate the profitability of different fractions of Holstein genes from subjective predictions of milk yield, calving interval, calf mortality, and length of productive herd life by Venezuelan producers and others for an upgrading program from a Zebu breed to Holstein. Data were from surveys of 157 farms in 1987 to 1988 to obtain input use; variable costs for feed, labor, health and reproduction; product prices; and market values by animal category. Predictions of performance in multiple traits were from a complementary survey of the same producers and others (16 consultants and 10 Venezuelan professors; 9 US germplasm exporters, and 17 US professors). Profit was approximated by lifetime net margin (gross income from milk plus male and female offspring plus salvage value minus variable costs) per cow for each breed group and discounted to the date of first calving.

Survey respondents predicted that the 75% Holstein breed group was most profitable and that milk yield and calving interval were the most important traits economically. For net margin equal to 75% Holstein, 100% Holstein cows would have to increase milk yield by 23% or reduce calving intervals by 17%, and 50% Holstein cows would have to increase milk yield by 18% or reduce calving intervals by 12% to obtain profits equal to 75% Holstein. Most literature reports show differences in milk yield of less than 10% between 50 and 75% Holstein groups. Thus, 50 to 75% Holstein crosses are likely the most profitable ones when multiple traits were considered for Venezuelan conditions.

Key Words: net margin • Holstein crossbreds • Venezuela

Submitted on December 11, 1989
Accepted on April 12, 1990