New Breeding Objectives. Peter Amer, AbacusBio

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New Breeding Objectives Peter Amer, AbacusBio

Background Indexes determine the priority given to alternative traits Breeding objectives = a set of economic weights High economic weight not necessarily high emphasis Also need genetic variation and accurate BV The sheep of the future! What are the markets telling us? What fundamental shifts are happening?

Background Indexes determine the priority given to alternative traits Breeding objectives = a set of economic weights High economic weight not necessarily high emphasis Also need genetic variation and accurate BV The sheep of the future! What are the markets telling us? What fundamental shifts are happening?

Information sources B+L NZ Economic Service NZX AgriHQ B+LNZ (2016) Compendium of NZ farm facts Stats NZ - InfoShare Published papers (e.g. Muir 2009, Everett Hincks 2014) Books (Nicol and Brookes 2010, Lincoln Farm Financial Manual) Meat company payment systems SIL genetic trends

Prices and premiums +~30% Definition Value 2010 ($) Lamb price for a 17.52kg lamb including pelt (unadjusted for transport costs) ($/ head) Premium per lamb obtained when carcass weight increased by 1kg ($) Premium paid per ewe (not graded as a cutter) when carcass weight increased by 1kg Premium per store lamb obtained when live weight increased by 1kg Premium for wool when fleece weight increased 1kg (clean basis) Value 2016 ($) 77.10 100.73 4.40 5.75 2.10 2.75 2.65 3.03 4.25 5.75

Lamb Price (NZ) All Grades

Seasonal price drift 7% drop over 10 weeks Week from early January to Mid March

Seasonal price drift Definition Value 2010 ($) Value 2016 ($) Mid-season drift in lamb price (start of January until start of March) ($/head/day) 0.05 0.06 Early-season drift in lamb price (start of November until end of December) ($/head/day) Early-season drift in ewe price (start of November until end of December) ($/head/day) 0.23 0.22 0.05 0.09 Faster mid-season drift Slower early season drift Faster ewe drift

Slaughter profile Definition Value 2010 Value 2016 Proportion of lambs slaughtered early-season 0.18 0.25 Proportion of lambs slaughtered mid-season 0.57 0.50 Proportion of lambs slaughtered late-season (heavier) 0.25 0.25 Proportion of lambs destined for slaughter mid-season sold store 0.255 0.143 Proportion of lambs destined for slaughter late-season sold store 0.140 0.200 More lambs in the early season (based on data from 2010-2015 incl.)

Feed costs ($/ MJME) Definition Value 2010 Value 2016 Spring feed cost all stock 0.001 0.004 Summer/ autumn feed cost for lambs 0.018 0.024 Summer/ autumn feed cost for ewes 0.013 0.017 Winter feed cost 0.035 0.040 More opportunities to generate value from spring feed Increase in costs in line with greater opportunity to use this feed for profit in other enterprises

NZMW Objective trait 2010 2016 % change Ewe mature weight (kg) -119* -147* 23.3% Carcase weight (kg) 374 467 25.0% Weaning weight direct (kg) 136 122-10.0% Weaning weight maternal (kg) 121 140 16.0% Weaning weight less important Less lambs sold store Shifting feed demand to earlier in the season is less valuable as less issues with spring surplu Still a strong emphasis on growth rate (Carcase Weight +25%)!

NZMW Objective trait 2010 2016 % change Ewe mature weight (kg) -119* -147* 23.3% Carcase weight (kg) 374 467 25.0% Weaning weight direct (kg) 136 122-10.0% Weaning weight maternal (kg) 121 140 16.0% Number of lambs born (ewe) 2231 2954 32.4% Lamb survival (direct) 9246 12274 32.8% Lamb survival (maternal) 8378 11136 32.9% Lamb fleece weight (kg) 261 341 30.7% Fleece weight at 12 months (kg) 113 153 35.3% Adult fleece weight (kg) 327 443 35.3% Hogget pregnancy 1037 1390 34.0% Hogget number of lambs born 502 620 23.6%

NZMW Objective trait 2010 2016 % change Shoulder lean yield (kg) 251 419 67.1% Leg lean yield (kg) 501 555 10.7% Loin lean yield (kg) 752 791 5.2% Fat yield (kg) 0 0 0.0%

Changing markets for lamb meat

NZMW Objective trait 2010 2016 % change Shoulder lean yield (kg) 251 419 67.1% Leg lean yield (kg) 501 555 10.7% Loin lean yield (kg) 752 791 5.2% Fat yield (kg) 0 0 0.0% GGT21-1433 -1947 35.9% FEC1% -4.14-5.21 25.7% FEC2% -4.14-5.21 25.7% AFEC% -3.12-3.93 25.8% Lamb dag score -48-59 21.9% Ewe dag score -51-62 22.1% BCS 1715 1941 13.2% Twinning 4637 4571-1.4%

Response to selection NZMW (young rams no cap on NLB) DPS 12% 2010 DPS 13% 2016 DPW 7% DPW 7% DPG 52% DPG 50% DPR 26% DPR 28% DPA -3% DPG DPA DPR DPW DPS DPA -2% DPG DPA DPR DPW DPS

Capped NLB (DPCR) Linear NLB value Capped NLB value reproduction value (cents/lamb born) 2000-250 cents at NLBBV=0.4-100 cents at NLBBV=0.3 1500-400 cents at NLBBV=0.5 1000 500 0-500 -0.2-0.1 0 0.1 0.2 0.3 NLB ebv 0.4 0.5 0.6 0.7 0.8

Response to selection NZMW (Effect of capped NLB) DPG DPG DPR DPCR

Expected trend if select on NZMW (2016 economic values) Trait Young rams Proven rams NLBeBV (lambs born per ewe lambing) 0.0108 0.0127 EWTeBV (kg adult liveweight) 0.0110-0.1052 CWeBV (kg carcase weight) 0.0558 0.0271 WWTeBV (kg live weight) 0.1079 0.0669 WWTMeBV (kg live weight from milk) 0.0532 0.0439 SUReBV (lambs weaned per lamb born) 0.0008 0.0007 SURMeBV (lambs weaned per lamb born) 0.0005 0.0004 LFWeBV (kg of greasy fleece weight) 0.0019 0.0015 FW12eBV (kg of greasy fleece weight) 0.0139 0.0109 EFWeBV (kg of greasy fleece weight) 0.0122 0.0097 For every 100 cents of index gain

NZTW Objective trait 2010 2016 % change Carcase weight (kg) 195 243 24.7% Weaning weight direct (kg) 68 61-10.7% Lamb survival (direct) 4567 6066 32.8% Shoulder lean yield (kg) 136 227 67.4% Leg lean yield (kg) 271 301 10.8% Loin lean yield (kg) 407 429 5.3% Fat yield (kg) -200-237 18.5%

Long term trend in carcase weight

Response to selection (NZTW young rams) TSS 7% 2010 TSS 7% 2016 TSM 19% TSM 19% TSG 74% TSG 74% TSG TSM TSS TSG TSM TSS

Expected trend if select on NZTW (2016 economic values) Trait Young rams Proven rams CWeBV (kg) 0.1088 0.0936 WWTeBV (kg) 0.1748 0.1644 SUReBV (lambs weaned / lamb born) 0.0007 0.0009 SHLYeBV (kg of shoulder lean per kg of carcase weight) 0.0089 0.0106 HQLYeBV (kg of hind quarter lean per kg of carcase weight) 0.0110 0.0109 LNLYeBV (kg of loin lean per kg of carcase weight) 0.0074 0.0093 FATYeBV (kg of fat per kg of carcase weight) -0.0159-0.0284

Proposed change in NZMW index scale Currently index cents in $ per ewe lambing New index weights are 25-30% higher Introduction of capped NLB reduces top indexes But what if we changed the indexes to per lamb born? Consistent with NZTW Value of a ram is NZMW x ½ x expected number of lifetime progeny

Effect of new options on how values look Index Effect on average Effect on spread Current NZMW - New economic weights +280 cents +23 % New economic weights capped NLB +193 cents +15 % New economic weights new scale -162 cents 0 % New economic weights new scale capped NLB -350 cents -20 %

Key messages The profit to be gained from genetic improvement is 20-30% higher (more variation in index values) than indicated by current indexes Only trivial re-ranking expected based on new economic information Capped NLB avoids over-rating excessively prolific animals Opportunity to change the scale of indexes to per lamb born Clearer meaning Indexes will drop on average and lower difference between top and bottom