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A note on the effect of the discount rate and length of the accounting period on the economic value of genetic improvement in cattle populations

Published online by Cambridge University Press:  02 September 2010

E. P. Cunningham  and
Joan Ryan
E. P. Cunningham
Affiliation:
The Agricultural Institute, Dunsinea, Castleknock, Dublin, Ireland
Joan Ryan
Affiliation:
Trinity College, Dublin, Ireland
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Summary

The discounted gene flow method was used to study the effect of varying financial discount rates and accounting period on the present value of the genetic merit conferred by each insemination.

Over the range from 8% to 16%, each 1% increase in the discount rate reduces the value of the dairy and beef consequences of an insemination by about 5% and 4% respectively, Virtually all of the economic benefit arising from an insemination is complete within 20 years, with about 90% of it being realized in the first 10 years and 98% in the first 15 years.

Type
Research Article
Information
Animal Production , Volume 21 , Issue 1 , August 1975 , pp. 77 - 80
Copyright
Copyright © British Society of Animal Science 1975

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References

REFERENCES

Cunningham, E. P. and McClintock, A. E. 1974. Selection in dual-purpose cattle populations: defining the breeding objective. Anim. Prod. 18: 237–247.Google Scholar
McClintock, A. E. and Cunningham, E. P. 1974. Selection in dual-purpose cattle populations: effect of beef crossing and cow replacement rates. Annls Ginét. Set Anim. 6: 227–239.Google Scholar