Economic Benefit of Genetic Progress in Five Wool Sheep Breeds of Argentina

Abstract

The economic benefits of genetic improvement were estimated based on genetic trends observed for economically important traits in stud herds participating in Argentina's genetic evaluation scheme. The analysis included Horned Merino, Polled Merino, Dohne Merino, Corriedale and Polwarth sheep born between 2014 and 2023. This benefit was calculated as the difference between the additional income generated by the increased value of meat and wool in multiplier and commercial herds, and the costs associated with genetic improvement at the stud tier and additional cost of improved rams at multiplier and commercial tiers. The benefits of 10 years of genetic improvement and their residual effect for another 10 years were computed, updating the annual results with a discount rate of 5%. The benefit obtained in the five breeds reached USD 4.95 million considering only breeding program costs at the stud tier. Including additional ram buying costs, the benefit reached USD 3.75 million, the difference being captured by the ram selling tiers. At the breed level (ignoring ram buying costs) the return to investment (ROI) amounted to 33.6. At multiplier and commercial herd tiers (including ram buying costs) the income to cost ratios were 5.5 and 4.0, respectively. The Corriedale breed was responsible for 39% of the total benefit. Altogether, genetic improvement in the stud tier reached 1.47 million lambs annually or about 54% of the five wool sheep populations of the country. Thus, conventional genetic improvement efforts of economically important traits of wool sheep breeds proved to have been highly profitable.