IDEAS home Printed from https://ideas.repec.org/a/eee/agisys/v131y2014icp94-104.html
   My bibliography  Save this article

Varying pasture growth and commodity prices change the value of traits in sheep breeding objectives

Author

Listed:
  • Rose, G.
  • Mulder, H.A.
  • Thompson, A.N.
  • van der Werf, J.H.J.
  • van Arendonk, J.A.M.

Abstract

Breeding programs for livestock require economic weights for traits that reflect the most profitable animal in a given production system. Economic weights are commonly based on average conditions. In pasture based livestock production systems the cost of feed is an important profit driver, but availability of feed from pasture can vary greatly within and between years. Additionally, the price of supplementary feed during periods of feed shortage and the prices for meat and wool vary between years. Varying prices and pasture growth can change the optimal management of the flock affecting profitability. This paper investigates how variation in commodity prices and pasture growth affect the economic values of traits in the breeding objective. We modelled a sheep farm with a self-replacing Merino flock bred for wool and meat in a Mediterranean environment. We optimised management decisions across 5years using dynamic recursive analysis to maximise profit when commodity prices and pasture growth varied annually. Actual pasture growth and wool, meat, and grain prices from 2005 to 2009 were used. Management could adapt to varying pasture growth and commodity prices by changing sheep numbers, age structure of the flock and amount of grain fed to sheep. The economic value of seven traits in the breeding objective were compared for a scenario with average pasture growth and commodity prices over years and a scenario with varying pasture growth and commodity prices over years. Variation in pasture growth and commodity prices decreased average profit and increased the economic value of all breeding goal traits compared to the average scenario. The order of importance of traits stayed the same between varying and average scenarios but the relative importance of traits changed. The economic values that increased the most were for traits that had increased profit with the smallest impact on energy requirements such as yearling live weight, longevity and fibre diameter. Our results showed that it is important to account for variation in feed availability and commodity prices when determining the expected profit and economic values for traits. The results also suggest that whereas variation in pasture growth and commodity prices between years makes the farming operations less profitable, these changing conditions increase the genetic variation in profitability of sheep. Therefore, genetic improvement has more value relative to scenarios where pasture feed supply and prices are constant.

Suggested Citation

  • Rose, G. & Mulder, H.A. & Thompson, A.N. & van der Werf, J.H.J. & van Arendonk, J.A.M., 2014. "Varying pasture growth and commodity prices change the value of traits in sheep breeding objectives," Agricultural Systems, Elsevier, vol. 131(C), pages 94-104.
    • Handle: RePEc:eee:agisys:v:131:y:2014:i:c:p:94-104
    DOI: 10.1016/j.agsy.2014.08.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308521X14001097
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.agsy.2014.08.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Emilio A. Laca, 2007. "Stochastic Rangeland Use under Capital Constraints," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 805-817.
    2. G Lien & JB Hardaker, 2001. "Whole-farm planning under uncertainty: impacts of subsidy scheme and utility function on portfolio choice in Norwegian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(1), pages 17-36, March.
    3. Kingwell, R., 2002. "Sheep animal welfare in a low rainfall Mediterranean environment: a profitable investment?," Agricultural Systems, Elsevier, vol. 74(2), pages 221-240, November.
    4. Lambert, David K., 1989. "Calf Retention And Production Decisions Over Time," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-11, July.
    5. Freer, M. & Moore, A. D. & Donnelly, J. R., 1997. "GRAZPLAN: Decision support systems for Australian grazing enterprises--II. The animal biology model for feed intake, production and reproduction and the GrazFeed DSS," Agricultural Systems, Elsevier, vol. 54(1), pages 77-126, May.
    6. Olson, Kent D. & Mikesell, Chris L., 1988. "The Range Stocking Decision And Stochastic Forage Production," Staff Papers 13502, University of Minnesota, Department of Applied Economics.
    7. Lence, Sergio H., 2000. "Using Consumption and Asset Return Data to Estimate Farmersï¾’ Time Preferences and Risk Attitudes," Staff General Research Papers Archive 1930, Iowa State University, Department of Economics.
    8. Aude Ridier & Florence Jacquet, 2002. "Decoupling Direct Payments and the Dynamics of Decisions under Price Risk in Cattle Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 549-565, November.
    9. Mosnier, C. & Agabriel, J. & Lherm, M. & Reynaud, A., 2009. "A dynamic bio-economic model to simulate optimal adjustments of suckler cow farm management to production and market shocks in France," Agricultural Systems, Elsevier, vol. 102(1-3), pages 77-88, October.
    10. Kopke, Emma & Young, John & Kingwell, Ross, 2008. "The relative profitability and environmental impacts of different sheep systems in a Mediterranean environment," Agricultural Systems, Elsevier, vol. 96(1-3), pages 85-94, March.
    11. Jacquet, F. & Pluvinage, J., 1997. "Climatic uncertainty and farm policy: A discrete stochastic programming model for cereal-livestock farms in Glgeria," Agricultural Systems, Elsevier, vol. 53(4), pages 387-407, April.
    12. Barbier, B. & Bergeron, G., 1999. "Impact of policy interventions on land management in Honduras: results of a bioeconomic model," Agricultural Systems, Elsevier, vol. 60(1), pages 1-16, May.
    13. Rose, Gus & Kingwell, Ross S., 2009. "Seasonal labour is the most profitable use of labour in broadacre crop dominant farms," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47947, Australian Agricultural and Resource Economics Society.
    14. Sergio H. Lence, 2000. "Using Consumption and Asset Return Data to Estimate Farmers' Time Preferences and Risk Attitudes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 934-947.
    15. Kobayashi, Mimako & Howitt, Richard E. & Jarvis, Lovell S. & Laca, Emilio A., 2007. "AJAE Appendix: Stochastic Rangeland Use Under Capital Constraints," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(3), pages 1-18, August.
    16. Kingwell, Ross S. & Pannell, David J. & Robinson, Stephen D., 1993. "Tactical responses to seasonal conditions in whole-farm planning in Western Australia," Agricultural Economics, Blackwell, vol. 8(3), pages 211-226, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mosnier, C. & Agabriel, J. & Lherm, M. & Reynaud, A., 2009. "A dynamic bio-economic model to simulate optimal adjustments of suckler cow farm management to production and market shocks in France," Agricultural Systems, Elsevier, vol. 102(1-3), pages 77-88, October.
    2. Diakité, Z.R. & Corson, M.S. & Brunschwig, G. & Baumont, R. & Mosnier, C., 2019. "Profit stability of mixed dairy and beef production systems of the mountain area of southern Auvergne (France) in the face of price variations: Bioeconomic simulation," Agricultural Systems, Elsevier, vol. 171(C), pages 126-134.
    3. Ridier, Aude & Chaib, Karim & Roussy, Caroline, 2016. "A Dynamic Stochastic Programming model of crop rotation choice to test the adoption of long rotation under price and production risks," European Journal of Operational Research, Elsevier, vol. 252(1), pages 270-279.
    4. Bathgate, A. & Revell, C. & Kingwell, R., 2009. "Identifying the value of pasture improvement using wholefarm modelling," Agricultural Systems, Elsevier, vol. 102(1-3), pages 48-57, October.
    5. Komarek, Adam M. & MacAulay, T. Gordon, 2013. "Farmer responses to changing risk aversion, enterprise variability and resource endowments," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(3).
    6. Lescot, Jean-Marie & Rousset, Sylvain & Souville, Genevieve, 2011. "Assessing Investment in Precision Farming for Reducing Pesticide Use in French Viticulture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114387, European Association of Agricultural Economists.
    7. Mosnier, Claire & Agabriel, Jacques & Lherm, Michel & Reynaud, Arnaud, 2008. "Assessing Economic And Technical Impacts Of Non Expected Weather Events On French Suckler Cow Farms Dynamics: A Dynamic Recursive Farm Model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44257, European Association of Agricultural Economists.
    8. Mosnier, Claire, 2014. "Would multi-peril grassland insurance improve French suckler cow farm sustainability?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182786, European Association of Agricultural Economists.
    9. Teklewold, Hailemariam, 2011. "Farming or burning? shadow prices and farmer’s impatience on the allocation of multi-purpose resource in the mixed farming system of Ethiopia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116080, European Association of Agricultural Economists.
    10. Lechthaler, Filippo & Vinogradova, Alexandra, 2017. "The climate challenge for agriculture and the value of climate services: Application to coffee-farming in Peru," European Economic Review, Elsevier, vol. 99(C), pages 5-30.
    11. Anton, Jesus & Mouel, Chantal Le, 2004. "Do counter-cyclical payments in the 2002 US Farm Act create incentives to produce?," Agricultural Economics, Blackwell, vol. 31(2-3), pages 277-284, December.
    12. Flichman, Guillermo & Jacquet, Florence, 2003. "Le couplage des modèles agronomiques et économiques : intérêt pour l'analyse des politiques," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 67.
    13. Schilizzi, S. G. M. & Kingwell, R. S., 1999. "Effects of climatic and price uncertainty on the value of legume crops in a Mediterranean-type environment," Agricultural Systems, Elsevier, vol. 60(1), pages 55-69, May.
    14. Johansson, Robert C. & Livingston, Michael J. & Westra, John V. & Guidry, Kurt M., 2006. "Simulating the U.S. Impacts of Alternative Asian Soybean Rust Treatment Regimes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), pages 1-12, April.
    15. Elminejad, Ali & Havranek, Tomas & Irsova, Zuzana, 2022. "Relative Risk Aversion: A Meta-Analysis," MetaArXiv b8uhe, Center for Open Science.
    16. Howitt, Richard E. & Reynaud, Arnaud & Msangi, Siwa & Knapp, Keith C., 2002. "Calibrated Stochastic Dynamic Models for Resource Management," 2002 Annual meeting, July 28-31, Long Beach, CA 19620, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Philippe Bontems & Celine Nauges, 2018. "Production choices with water markets and risk aversion: the role of initial allocations and forward trading," Post-Print hal-02349932, HAL.
    18. Finlayson, John & Real, Daniel & Nordblom, Tom & Revell, Clinton & Ewing, Mike & Kingwell, Ross, 2012. "Farm level assessments of a novel drought tolerant forage: Tedera (Bituminaria bituminosa C.H. Stirt var. albomarginata)," Agricultural Systems, Elsevier, vol. 112(C), pages 38-47.
    19. Claassen, Roger & Cooper, Joseph C. & Carriazo, Fernando, 2011. "Crop Insurance, Disaster Payments, and Land Use Change: The Effect of Sodsaver on Incentives for Grassland Conversion," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(2), pages 195-211, May.
    20. Claassen, Roger & Carriazo, Fernando & Cooper, Joseph C. & Hellerstein, Daniel & Ueda, Kohei, 2011. "Grassland to Cropland Conversion in the Northern Plains: The Role of Crop Insurance, Commodity, and Disaster Programs," Economic Research Report 262239, United States Department of Agriculture, Economic Research Service.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agisys:v:131:y:2014:i:c:p:94-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agsy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.