Economics of estrus synchronization and AI

Commercial cow-calf producers have an increasing number of options available for the synchronization of estrus and ovulation to facilitate the incorporation of an artificial insemination (AI) program. At the same time, low-cost production and/or the ability to produce a higher valued product are essential for economic success in the cow-calf industry. Previous research has examined the costs of various artificial insemination (AI) breeding systems and/or compared those costs to natural service options (Loseke, 1989, Johnson and Jones, 2005, Miller et al., 2004). From a strict “cost per pregnancy” perspective, it has been difficult to identify AI systems that consistently compete well with natural service options. This may explain why AI technology has not been widely adopted by commercial cow-calf producers. However, when even modest genetic value premiums associated with higher quality calves or retained ownership marketing options are added to the equation, several AI systems have the potential to increase net returns to the cow-calf enterprise. With continued improvements in success of synchronization systems, and with the continually evolving beef cattle marketing system that may lead to greater genetic premiums (or discounts) being passed down to the cow-calf producer, there is a need for continued evaluation of the economic ramifications of the breeding system decision.