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Albert De Vries
Department of Animal Sciences
University of Florida
Gainesville, FL 32608
devries@ufl.edu
Genomic Testing: Where is the
Greatest Economic Value?
USDA-NIFA Dairy Genomics Workshop, Okeechobee, FL, December 7, 2016
Genomic test predicts future performance
Must have a plan
Plan may be profitable
Acknowledgments
• Dairy farmers
• Allied industry
• University/USDA colleagues, students
• Funding:
This work is financially supported by USDA-NIFA AFRI grant award 2013-68004-
20365 titled “Improving Fertility of Dairy Cattle Using Translational Genomics”.
Outline
1. Genetics 101
2. Genomic testing: where is the value?
 Avoid inbreeding
 Sell surplus calves/heifers
 Use sexed and/or beef semen
 Genetic progress and culling
 Better reproduction
 Optimization
 What is next?
3. Take home messages
AGIL meeting with BARC and NEA management, November 5 2014 (5) Paul VanRaden
Trait
Relative emphasis in USDA index (%)
PD$
1971
MFP$
1976
NM$
1994
NM$
2000
NM$
2003
NM$
2006
NM$
2010
NM$
2014
Milk 52 27 6 5 0 0 0 -1
Fat 48 46 25 21 22 23 19 22
Protein … 27 43 36 33 23 16 20
Longevity … … 20 14 11 17 22 19
SCS … … –6 –9 –9 –9 –10 –7
Udder … … … 7 7 6 7 8
Feet/Leg … … … 4 4 3 4 3
Body Size … … … –4 –3 –4 –6 –5
Preg Rate … … … … 7 9 11 7
Calving … … … … 4 6 5 5
Heifer CR … … … … … … … 2
Cow CR … … … … … … … 1
Changes in trait selection across time
Net Merit (NM$) = USDA genetic selection index
2014 revision: 12 traits
Lifetime value of genetic worth ($) compared to cow born in
2010
Variation: $194 standard deviation of true transmitting ability
$388 standard deviation of true breeding value
University of Florida genomic testing
Clarifide Plus and Igenity Essential
Net Merit 9 calves
PTA EBV=2xPTA
Worst: $253 $506
Best: $530 $1060
Difference: $227 $554
Best calf is expected to be $554 more profitable
than worst calf ($185 per lactation)
“Identify top genetics  IVF/ET  sell top genetics”
“Identify low genetics  sell, or use as ET recipients”
No IVF/ET? “Genomic test the heifers, identify the elite
individuals and breed those heifers to sexed semen”
Avoid inbreeding
• Genetic progress = genetic variation x
selection intensity x √(reliability of test)
• Genetic progress per year = genetic progress
between generations / generation interval
How good the ranking is:
• Pedigree info.
• Genomic test info.
Natural genetic differences
How picky we can be
Genetic progress 101
Breeders equation
-300
-200
-100
0
100
200
300
400
500
600
700
0 500 1000 1500 2000 2500 3000 3500 4000
PTAnetmerit($)
Age (days)
Heifers
Cows
PTA Net Merit distribution
FL farm, 539 heifers, 1058 cows (no genomic testing)
Standard deviation PTA ≈ $125
Standard deviation EBV ≈ $250
True genetic variation > Estimated genetic variation
Dr. Kent Weigel UW (2011)
True breeding value of selected animals ($)
$350 genetic standard deviation Net Merit
10% 30% 50% 70% 90%
10% 194 128 88 55 22
30% 336 222 153 95 37
50% 434 287 197 123 48
70% 514 339 234 145 57
90% 583 385 265 165 65
Animals selected
Reliability
of test
How to calculate value of genomic testing?
• Try to include all important factors:
– Genetic age trend, genetic variation, inseminations,
milk production, feed, prices, reproduction, culling,
stillbirth, cost of testing, …
– Sell surplus worst heifer calves
– Not included: inbreeding, bad matings
– Reliabilities: 0%, “some”, “a lot” ($0), genomic ($50)
• Do math …
• Bottom line: profit per milking cow per year
– And many other results
Scenario 1: Only conventional semen
reference
+$14
+$26
+$15 = $42 - $27
• Only conventional semen
• 12% surplus heifer calves sold
• “genomic” profit per milking cow per year: $431
reliability
Scenario 1: Only conventional semen
reference
+$26
+$47
+$26 = $76 - $50
• Per dairy calf:
reliability
Scenario 2: top 50% heifers sexed semen
reference
+$22
+$41
+$37
• Top 50% heifers with sexed semen, remainder conventional
• 18% surplus heifer calves sold
• “genomic” profit per milking cow per year: $449
reliability
Genetic variation matters
sexed semen on top 50% heifers (Scenario 2)
EBV (PTA)Standard
deviation
Reliability
Sire matters too
• Increase in sire PTA to break-even with genomic
profit/milking cow per year
• Net Merit, $350 breeding value
• Top 50% heifers with sexed semen (Scenario 2)
+$50
+$20
-$6
Reliability
Genetic progress and culling
• Increase cow cull rate instead of selling surplus
heifers?
Net Merit genetic trends (PTA)
https://www.cdcb.us/eval/summary/trend.cfm
2010 – 2014:
Sire of cow PTA: $58/year
Cow PTA: $47/year
Dam of cow PTA: $35/year
Conclusion culling - genetics
• After review of existing work: Increased
genetic progress in sires should increase
cow cull rates by a few percent at most.
But
• Selective breeding within the herd, and
selection of calves, may capture some
additional genetic progress, depending on
level of reproduction.
Pregnancy rate (%)
6,795 Holstein dairy herds
Mostly eastern USA
November 2016
DairyMetrics, www.drms.org
19.1%
Source: Overton and Cabrera (2017).
Figure 1
Value of
increased
pregnancy rates
($/cow/year)
6 model studies
Valuing change in reproduction
• Herd budget spreadsheet
– …, calves, heifers, cows, milk, feed, repro, culling,
insemination, prices, genetics, …
• 3 x 2 = 6 policies:
– 3: “Traditional”, constant cull rate, no surplus calves
– 2: Conventional semen only, sexed semen + genomic testing
– Sell surplus calves, vary cull rate (if needed)
• Change reproduction:
– Vary probability of estrus detection and/or probability of
conception for free
– Calculate results: …, cull rate, surplus calves, profit, …
Surplus female dairy calves
6 policies:
Profit per milking cow per year
6 policies:
Optimization
• Best breeding mix (sexed, conventional, beef)
– Increase in pregnancy rate
– Increase in crossbred calf price
Effect of beef price: User
• Crossbred calf $225, $300, or $375 (Purebred: $150)
• Genetics: traditional or genomic test
• Breeding mix: User-defined (sexed, conventional, beef)
$225 $300 $375
Profit/milking cow/year
Effect of beef price: Optimal
• Crossbred calf $225, $300, or $375 (Purebred: $150)
• Genetics: traditional or genomic test
• Breeding mix: Optimal (sexed, conventional, beef)
$225 $300 $375
Profit/milking cow/year
Effect of better repro: User
• Pregnancy rate: 14%, 20%, or 28%
• Genetics: traditional or genomic test
• Breeding mix: User-defined (sexed, conventional, beef)
14% 20% 28%
Profit/milking cow/year
Effect of better repro: Optimal
• Pregnancy rate: 14%, 20%, or 28%
• Genetics: traditional or genomic test
• Breeding mix: Optimal (sexed, conventional, beef)
≈14% ≈20% ≈28%
Profit/milking cow/year
Timing of costs and returns
• Pregnancy rate: 28%
• Genetics: traditional vs. genomic test
• Breeding mix: Optimal (sexed, conventional, beef)
• Δ Profit/milking cow/year = $57 (genomic – traditional)
Profit/milking cow/year
What is next?
• All shown results preliminary
• Many factors, prices play a role
• Results on your farm will be different
• It is complicated, need professional advice
• Best strategies emerging
Take home messages
• Genomic testing is here to stay
• Genomic testing of females on the farm can be
profitable, maybe
• Better reproduction makes testing more profitable
• Value of testing will likely increase when we learn
how to best use the information
devries@ufl.edu

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Genomic testing: where is the greatest value?

  • 1. Albert De Vries Department of Animal Sciences University of Florida Gainesville, FL 32608 devries@ufl.edu Genomic Testing: Where is the Greatest Economic Value? USDA-NIFA Dairy Genomics Workshop, Okeechobee, FL, December 7, 2016
  • 2. Genomic test predicts future performance Must have a plan Plan may be profitable
  • 3. Acknowledgments • Dairy farmers • Allied industry • University/USDA colleagues, students • Funding: This work is financially supported by USDA-NIFA AFRI grant award 2013-68004- 20365 titled “Improving Fertility of Dairy Cattle Using Translational Genomics”.
  • 4. Outline 1. Genetics 101 2. Genomic testing: where is the value?  Avoid inbreeding  Sell surplus calves/heifers  Use sexed and/or beef semen  Genetic progress and culling  Better reproduction  Optimization  What is next? 3. Take home messages
  • 5. AGIL meeting with BARC and NEA management, November 5 2014 (5) Paul VanRaden Trait Relative emphasis in USDA index (%) PD$ 1971 MFP$ 1976 NM$ 1994 NM$ 2000 NM$ 2003 NM$ 2006 NM$ 2010 NM$ 2014 Milk 52 27 6 5 0 0 0 -1 Fat 48 46 25 21 22 23 19 22 Protein … 27 43 36 33 23 16 20 Longevity … … 20 14 11 17 22 19 SCS … … –6 –9 –9 –9 –10 –7 Udder … … … 7 7 6 7 8 Feet/Leg … … … 4 4 3 4 3 Body Size … … … –4 –3 –4 –6 –5 Preg Rate … … … … 7 9 11 7 Calving … … … … 4 6 5 5 Heifer CR … … … … … … … 2 Cow CR … … … … … … … 1 Changes in trait selection across time Net Merit (NM$) = USDA genetic selection index 2014 revision: 12 traits Lifetime value of genetic worth ($) compared to cow born in 2010 Variation: $194 standard deviation of true transmitting ability $388 standard deviation of true breeding value
  • 6. University of Florida genomic testing Clarifide Plus and Igenity Essential Net Merit 9 calves PTA EBV=2xPTA Worst: $253 $506 Best: $530 $1060 Difference: $227 $554 Best calf is expected to be $554 more profitable than worst calf ($185 per lactation)
  • 7. “Identify top genetics  IVF/ET  sell top genetics” “Identify low genetics  sell, or use as ET recipients” No IVF/ET? “Genomic test the heifers, identify the elite individuals and breed those heifers to sexed semen”
  • 9. • Genetic progress = genetic variation x selection intensity x √(reliability of test) • Genetic progress per year = genetic progress between generations / generation interval How good the ranking is: • Pedigree info. • Genomic test info. Natural genetic differences How picky we can be Genetic progress 101 Breeders equation
  • 10. -300 -200 -100 0 100 200 300 400 500 600 700 0 500 1000 1500 2000 2500 3000 3500 4000 PTAnetmerit($) Age (days) Heifers Cows PTA Net Merit distribution FL farm, 539 heifers, 1058 cows (no genomic testing) Standard deviation PTA ≈ $125 Standard deviation EBV ≈ $250 True genetic variation > Estimated genetic variation
  • 11. Dr. Kent Weigel UW (2011)
  • 12. True breeding value of selected animals ($) $350 genetic standard deviation Net Merit 10% 30% 50% 70% 90% 10% 194 128 88 55 22 30% 336 222 153 95 37 50% 434 287 197 123 48 70% 514 339 234 145 57 90% 583 385 265 165 65 Animals selected Reliability of test
  • 13. How to calculate value of genomic testing? • Try to include all important factors: – Genetic age trend, genetic variation, inseminations, milk production, feed, prices, reproduction, culling, stillbirth, cost of testing, … – Sell surplus worst heifer calves – Not included: inbreeding, bad matings – Reliabilities: 0%, “some”, “a lot” ($0), genomic ($50) • Do math … • Bottom line: profit per milking cow per year – And many other results
  • 14. Scenario 1: Only conventional semen reference +$14 +$26 +$15 = $42 - $27 • Only conventional semen • 12% surplus heifer calves sold • “genomic” profit per milking cow per year: $431 reliability
  • 15. Scenario 1: Only conventional semen reference +$26 +$47 +$26 = $76 - $50 • Per dairy calf: reliability
  • 16. Scenario 2: top 50% heifers sexed semen reference +$22 +$41 +$37 • Top 50% heifers with sexed semen, remainder conventional • 18% surplus heifer calves sold • “genomic” profit per milking cow per year: $449 reliability
  • 17. Genetic variation matters sexed semen on top 50% heifers (Scenario 2) EBV (PTA)Standard deviation Reliability
  • 18. Sire matters too • Increase in sire PTA to break-even with genomic profit/milking cow per year • Net Merit, $350 breeding value • Top 50% heifers with sexed semen (Scenario 2) +$50 +$20 -$6 Reliability
  • 19. Genetic progress and culling • Increase cow cull rate instead of selling surplus heifers?
  • 20. Net Merit genetic trends (PTA) https://www.cdcb.us/eval/summary/trend.cfm 2010 – 2014: Sire of cow PTA: $58/year Cow PTA: $47/year Dam of cow PTA: $35/year
  • 21. Conclusion culling - genetics • After review of existing work: Increased genetic progress in sires should increase cow cull rates by a few percent at most. But • Selective breeding within the herd, and selection of calves, may capture some additional genetic progress, depending on level of reproduction.
  • 22. Pregnancy rate (%) 6,795 Holstein dairy herds Mostly eastern USA November 2016 DairyMetrics, www.drms.org 19.1%
  • 23. Source: Overton and Cabrera (2017). Figure 1 Value of increased pregnancy rates ($/cow/year) 6 model studies
  • 24. Valuing change in reproduction • Herd budget spreadsheet – …, calves, heifers, cows, milk, feed, repro, culling, insemination, prices, genetics, … • 3 x 2 = 6 policies: – 3: “Traditional”, constant cull rate, no surplus calves – 2: Conventional semen only, sexed semen + genomic testing – Sell surplus calves, vary cull rate (if needed) • Change reproduction: – Vary probability of estrus detection and/or probability of conception for free – Calculate results: …, cull rate, surplus calves, profit, …
  • 25. Surplus female dairy calves 6 policies:
  • 26. Profit per milking cow per year 6 policies:
  • 27. Optimization • Best breeding mix (sexed, conventional, beef) – Increase in pregnancy rate – Increase in crossbred calf price
  • 28. Effect of beef price: User • Crossbred calf $225, $300, or $375 (Purebred: $150) • Genetics: traditional or genomic test • Breeding mix: User-defined (sexed, conventional, beef) $225 $300 $375 Profit/milking cow/year
  • 29. Effect of beef price: Optimal • Crossbred calf $225, $300, or $375 (Purebred: $150) • Genetics: traditional or genomic test • Breeding mix: Optimal (sexed, conventional, beef) $225 $300 $375 Profit/milking cow/year
  • 30. Effect of better repro: User • Pregnancy rate: 14%, 20%, or 28% • Genetics: traditional or genomic test • Breeding mix: User-defined (sexed, conventional, beef) 14% 20% 28% Profit/milking cow/year
  • 31. Effect of better repro: Optimal • Pregnancy rate: 14%, 20%, or 28% • Genetics: traditional or genomic test • Breeding mix: Optimal (sexed, conventional, beef) ≈14% ≈20% ≈28% Profit/milking cow/year
  • 32. Timing of costs and returns • Pregnancy rate: 28% • Genetics: traditional vs. genomic test • Breeding mix: Optimal (sexed, conventional, beef) • Δ Profit/milking cow/year = $57 (genomic – traditional) Profit/milking cow/year
  • 33. What is next? • All shown results preliminary • Many factors, prices play a role • Results on your farm will be different • It is complicated, need professional advice • Best strategies emerging
  • 34. Take home messages • Genomic testing is here to stay • Genomic testing of females on the farm can be profitable, maybe • Better reproduction makes testing more profitable • Value of testing will likely increase when we learn how to best use the information devries@ufl.edu

Editor's Notes

  • #6: 5
  • #10: Genetic progress in selected population vs. population at large Accuracy = sq
  • #11: Is it an ok graph?
  • #12: Table from Dr. Kent Weigel from the University of Wisconsin (2011) Age of the animal on the left On top, 3 types of genetic information With (genomic) and without (traditional) genomic testing Focus on heifers See how reliability increases