Comparison between an exclusive in vitro–produced embryo transfer system and artificial insemination for genetic, technical, and financial herd performance

Abstract

The objective of this study was to implement an in vitro-produced embryo transfer (IVP-ET) system in an existing stochastic dynamic dairy simulation model with multitrait genetics to evaluate the genetic, technical, and financial performance of a dairy herd implementing an exclusive IVP-ET or artificial insemination (AI) system. In the AI system, sexed semen was used on the genetically best heifers only. In the IVP-ET system, all of the animals in the herd were impregnated with female sexed embryos created through in vitro fertilization of oocytes collected from animals of superior genetics for different traits of interest. Each donor was assumed to yield on average 4.25 transferable embryos per collection. The remaining animals in the herd were used as recipients and received either a fresh embryo or a frozen embryo when fresh embryos were not available. Selection of donors was random or based on the greatest estimated breeding value (EBV) of lifetime net merit (NM$), milk yield, or daughter pregnancy rate. For both the IVP-ET and AI systems, culling of surplus heifer calves not needed to replace culled cows was based on the lowest EBV for the same traits. A herd of 1,000 milking cows was simulated 15 yr over time after the start of the IVP-ET system. The default cost to produce and transfer 1 embryo was set at $165. Prices of fresh embryos at which an exclusive IVP-ET system financially breaks even with the comparable AI system in yr 15 and for an investment period of 15 yr were also estimated. More surplus heifer calves were sold from the IVP-ET systems than from the comparable AI systems. The surplus calves from the IVP-ET systems were also genetically superior to the surplus calves from the comparable AI systems, which might be reflected in their market value as a premium price. The most profitable scenario among the 4 IVP-ET scenarios in yr 15 was the one in which NM$ was maximized in the herd. This scenario had an additional profit of $8/cow compared with a similar AI scenario that maximized NM$, provided that surplus heifer calves could be sold at a premium price based on the superiority of the EBV of NM$. For the IVP-ET system to be at least as profitable as the comparable AI system during a 15-yr investment period, the surplus calves from the IVP-ET system needed to be sold at the premium prices. The break-even price of fresh embryos was estimated to be $84 for the exclusive IVP-ET system. This resulted in the same profit as the AI system, which maximized NM$ for a 15-yr investment period and in which heifer calves were sold at a premium price.

A review of simulation analyses of economics and genetics for the use of in-vitro produced embryos and artificial insemination in dairy herds

“…By year 9, the AI and IVP scenarios with selection based on NM$ started to have similar profitability and by year 15 they differed only by $8 per cow per year (Figure 3; advantage IVP scenario) when the greater surplus calf prices for IVP calves were included. In year 15, the break-even price for an IVP embryo was $168 per transfer, so it was very similar to the input price of $165 (Kaniyamattam et al, 2017).…”

“…In the first study (Kaniyamattam et al, 2017), we compared four scenarios with exclusive AI use with four scenarios with exclusive IVP-ET use (100% of pregnancies from IVP-ET). Selections of donors and surplus heifer calves were based on one of four selection criteria: EBV of either milk yield, DPR, or NM$, or random selection.…”

“…Name of the scenarios for cows: AI = exclusive artificial insemination program, ET = exclusive in-vitro produced embryo transfer program. Eligible animals were ranked either randomly (RAND) or based on their estimated breeding value of NM$, milk yield (MILK) or daughter pregnancy rate (DPR; Kaniyamattam et al, 2017). Each scenario for cows is a combination of program (AI or ET) and ranking method (NM, MILK, DPR, RAND).…”

“…Eligible animals were ranked either randomly (RAND) or based on their estimated breeding value of Lifetime Net Merit (NM$), milk yield (MILK) or daughter pregnancy rate (DPR). The profit of the 4 IVP-ET scenarios decreases rapidly after the start of the IVP-ET program in year 1 because the embryo transfer cost are greater than the AI cost (Kaniyamattam et al, 2017). Each scenario for cows is a combination of program (AI or ET) and ranking method (NM, MILK, DPR, RAND).…”

The Recognition and Valuation of an Asset\'s Productivity in Business Accounting and Reporting

“…It should be noted that scientific articles that have emerged in recent years are related not only to the embryos' obtaining and transplantation processes, but also devoted to the economic efficiency of these technologies. In particular, noteworthy are the works of Kaniyamattam (2017;2018) which are dealing with the most profitable use of embryo donor cows. Based on stochastic modeling, the authors have proved the optimal model of business processes of the breeding company.…”