Derivation of Economic Values for Breeding Objective Traits of Chinese Holstein Dairy Cows Using a Bio‐Economic Model

ABSTRACT Holstein cattle account for the largest proportion of dairy cattle in China. The current China Performance Index (CPI) consists mainly of production traits. To derive economic values (EV) of additional traits for balanced breeding programs, a bio‐economic model is necessary. Landless and intensive dairy farms are dominant in China, wherein all feed is purchased, and in‐farm technicians and veterinarians are employed. Therefore, in the present study, a tailored bio‐economic model was developed using the parameters of a typical dairy farm in North China. The typical farm had 1500 cows and 1400 youngstock, with a replacement rate of 33.5% per year and a productive life of 1090 days. The bio‐economic model was on a per cow per year basis and described the revenues and costs from different animal categories. The EVs of 17 traits, including production, calving, fertility, longevity, and health traits, were derived and used to develop a more balanced selection index. Results showed that the bio‐economic model can represent the typical dairy farm system in North China. The EVs of production traits were 2.39 Chinese Yuan (CNY), 32.85 CNY, and 89.60 CNY per kg milk yield, fat yield and protein yield, respectively. The EVs of production traits were two to three times higher than those in some European countries, due to the higher prices on milk volume and milk solids in China. The EVs of health traits ranged from −0.45 CNY to −11.95 CNY and were nearly half of those in other countries, due to the lower in‐farm veterinarian labour costs. The EVs of most other functional traits were in line with the published values of other countries with similar economic assumptions in the model. Using the calculated EVs, a more balanced selection index was derived by including functional traits. This index had higher relative weight (46.8%) on functional traits than the current CPI (12.5%). With the high milk prices, it is still most profitable to allow for a decline in functional traits, although the decline is considerably smaller with the developed balanced index than with the CPI. Collectively, the bio‐economic model and EVs provided the foundations for implementing balanced breeding programs in the Chinese Holstein population.