JDS
HOME HELP FEEDBACK SUBSCRIPTIONS ARCHIVE SEARCH TABLE OF CONTENTS
QUICK SEARCH:   [advanced]


     

Journal of Dairy Science Vol. 78 No. 3 648-654
© 1995 by American Dairy Science Association ®
This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Similar articles in this journal
Right arrow Alert me to new issues of the journal
Right arrow Download to citation manager
Right arrow reprints & permissions
Citing Articles
Right arrow Citing Articles via HighWire
Right arrow Citing Articles via Google Scholar
Google Scholar
Right arrow Articles by Weigel, D. J.
Right arrow Articles by Pearson, R. E.
Right arrow Search for Related Content
PubMed
Right arrow Articles by Weigel, D. J.
Right arrow Articles by Pearson, R. E.

Adjustment of a Net Income Function for Opportunity Cost of Postponed Replacement on a Lactation Basis

D. J. Weigel 1, B. G. Cassell 1, and R. E. Pearson 1

1 Department of Dairy Science, Virginia Polytechnic Institute and State University, Blacksburg 24061-0315

Opportunity cost of postponed replacement is the income forfeited by keeping a cow an additional lactation and is estimated by the income produced by an average replacement. We studied the effect of refining estimated net income by calculation of an opportunity cost for each lactation. After edits, the data consisted of records for 2,982,001 Holstein cows from herds classified between 1983 and 1992.

Prediction factors were developed for net income and herd life so that opportunity cost could be estimated from cows with shorter herd-life opportunities. Within-herd correlations of net income estimated from 84 mo of opportunity for herd life compared with that predicted from cows alive at 36, 48, 60, and 72 mo were .46, .59, .72, and .76, respectively. Corresponding correlations for predicted herd life totals at the same ages were .28, .36, .41. and .47.

Opportunity costs that were specific to lactation-herd-year were $35 higher than opportunity cost from first freshening to all lactations for 84 mo of opportunity. Higher costs reflect phenotypic trends of $31 more net income over 13 fewer d of herd life for cows with 84 mo of herd-life opportunity. Accurate adjustment of net income totals for opportunity cost is necessary when economic weights are developed for traits in the aggregate genotype.

Key Words: net income • opportunity cost • lifetime merit

Submitted on June 10, 1994
Accepted on September 19, 1994




This article has been cited by other articles:


Home page
 J DAIRY SCIHome page
G. E. Shook
Major advances in determining appropriate selection goals.
J Dairy Sci, April 1, 2006; 89(4): 1349 - 1361.
[Abstract] [Full Text] [PDF]

Home page
 J DAIRY SCIHome page
B. G. Cassell, S. M. Jobst, M. L. McGilliard, and R. E. Pearson
Evaluating Sire Selection Practices Using Lifetime Net Income Functions
J Dairy Sci, December 1, 2002; 85(12): 3492 - 3502.
[Abstract] [Full Text] [PDF]


HOME HELP FEEDBACK SUBSCRIPTIONS ARCHIVE SEARCH TABLE OF CONTENTS
Copyright © 1995 by the American Dairy Science Association ®.