Assessing the comparative economics of a biotechnology: Artificial insemination dairy sires

Much opportunity exists to increase economic returns from the artificial insemination, dairy sire selection decision. This article measures potential returns to producers with alternative objective functions, management and financial characteristics. The costs of wrong decisions from incorrect information are measured by differences between alternative sets of top-20 Holstein sires selected from more than 400 available. Correct specification of the objective function is most important. Determination of planning horizon and conception rate also merits allocation of some scarce management resources. Correct information about length of calving interval, female mortality rate, and opportunity cost of capital, however, is economically inconsequential.