Angus to Update Selection Indexes July 1Fri, 17 Jun 2016 22:15:41 CDT
Angus breeders and their customers will see some slight changes in dollar value indexes ($Values) beginning July 1 as Angus Genetics Inc. (AGI) updates the economic assumptions used to calculate the selection tools included in the American Angus Association weekly genetic evaluation.
“Every July, we update the economic assumptions that go into Angus $Values, like $B and $W,” says Dan Moser, AGI president who oversees the Association’s performance programs. “This allows for the most up-to-date market prices and costs to predict profit differences among animals.”
These economic assumptions are assigned to expected progeny difference (EPD) components included in the $Values, which are expressed in dollars per head and allow for multi-directional change. While the update is a regular occurrence for the breed, Moser reminds members that any declines in $Value numbers are largely a reflection of market conditions.
“As market conditions change, so must the economic assumptions used to calculate the indexes. With market prices trending as they are, there’s no doubt that will have some influence on dollar values across the board,” he says. “On average, we anticipate bulls may go down about $6 for $B and about $2 for $W, due to lower calf prices relative to last year.”
The Association has offered $Values for more than a decade, and producers have seen such changes before.
“We’ve seen market conditions influence these indexes before, and any producer operating in the cattle market today is well aware of the economic averages experienced during the past few years,” Moser says, assuring producers that rankings should stay relatively unchanged.
“The highest values won’t be quite as high; the lowest values won’t be quite as low, and the average will decline slightly. The way the bulls rank in the Angus population should be very similar to the ranking before the update.”
Economic assumptions are based on three-year rolling averages and are updated every year in July to allow $Values to more accurately reflect the market trends of the beef industry. AGI works with independent industry consultants to derive the economic values used to establish updated figures — figures that Moser says provide the most relevant, accurate bioeconomic information available.
“$Values provide a good option in genetic decision-making for producers seeking a more simplistic approach that incorporates dollars and cents,” he says. “This regular update ensures AGI is delivering that capability.”
$Values were first introduced in the Sire Evaluation Report by the Association in 2004 as a way to add simplicity to genetic selection decisions for commercial producers or those wanting a multi-trait approach. $Values currently offered through AGI include: weaned calf value ($W), feedlot value ($F); grid value ($G); and beef value ($B).
More information about $Values and search capabilities is available at http://www.angus.org/Nce/ValueIndexes.aspx.
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