Breeding goals & design

Derivation of economic values for an intensive beef-on-dairy crossbred system using a bio-economic model

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Abstract

The aim of this study was to estimate the marginal economic values (EV) of production, sustainability and health traits in crossbred beef-on-dairy calves. A deterministic bio-economic model was developed to represent the Danish intensive conventional beef-on-dairy production system. Crossbred calves from the most common cross in Denmark, Danish Blue sires à— Holstein dams, were simulated. An average production system was modelled, where calves were transferred from dairy herds to finishing units at one month and reared indoors until 10 months. The herd size was assumed to be 500 animals with a sex ratio of 60% male, due to an increased male sexed semen usage. Eight breeding objective traits were modelled, with baseline population means: average daily gain (ADG, 1.23  kg/day), EUROP score (6.96-points), fat score (2.46-points), dressing percentage (54 %), youngstock survival from day 31 to 300 (YSS, 96%), incidences of diarrhea, pneumonia and claw disorders over the fattening period (11%, 36% and 4% respectively), residual feed intake (RFI, 0.127 kg/day), and methane production (189 L CHâ‚„/day) for growing calves. Revenue was calculated from the carcass weight and price (€ per kg of carcass), while costs included fixed costs (19.39 €/day/herd) including labour, capacity, capital, transportation of calves and advisory costs, feed (0.36 €/kg), medicine (11.08 €/day), veterinary expenses and disposal of dead animals (33.41 €/dead animal). As part of Denmark's Green policy, a COâ‚‚ tax of €40 per kg COâ‚‚e emitted at the farm level will be implemented in 2035 to reduce the climate impact of cattle. It was considered as a cost on CHâ‚„ emissions in the model. Herd profit was calculated as total revenue minus total costs. When deriving EV, each individual trait was changed by 0.01-unit improvement while keeping the other traits constant. The EV (unit/GSD) were highest for ADG (€24.61), slaughter percentage (€31.09), RFI (€53.55), and YSS (€54.39). Improving YSS enabled the production of five extra calves at the herd level, increasing both revenue and feed costs. Traits with the lowest EV included EUROP score (€1.18) and fat score (€1.59), because the distribution of these traits were close to economic optimum. The EV of disease incidences was low (€3.63), reflecting the low costs associated with disease treatment, even though disease reduction has broader animal welfare and societal value beyond direct economic returns. Considering environmental impact, the EV for CHâ‚„ production was modest (€14.3). These results highlight that economic efficiency in beef-on-dairy systems is strongly driven by growth and feed-related traits, while disease and carcass conformation contribute marginally to the profit. The modest impact of CHâ‚„ reflects the current low COâ‚‚ taxation, but future environmental regulations may increase its importance. The estimated EV provide a foundation for defining breeding goals for Danish beef-on-dairy lines.

Keywords: 2026

How to Cite:

Magnussen, M., Østergaard, S., Davis, R., Thomasen, J., Hjortø, L., Bouquet, A. & Nielsen, H., (2026) “Derivation of economic values for an intensive beef-on-dairy crossbred system using a bio-economic model”, World Congress on Genetics Applied to Livestock Production Digital Archive 2026(1): 2286314. doi: https://doi.org/10.31274/wcgalp.23920

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