Economic evaluation of breeding strategies for improvement of dairy cattle in Kenya.

Cost-benefit analysis using net present value (NPV) as the economic evaluation criterion was used to investigate the economic merits of four breeding strategies used for genetic improvement of dairy cattle in Kenya. The breeding strategies were evaluated over a 25-year period. The costs involved in setting up and running each strategy were obtained from large-scale dairy cattle farms, and government and private institutions involved in genetic improvement of dairy cattle. Only benefits from genetic improvement were considered. The impact on NPV due to changes in genetic and economic parameters was investigated. The ranking of the breeding strategies greatly differed with genetic ranking. Among the local selection programs, a strategy utilizing young bulls, sons of local bulls, was more profitable than one utilizing old progeny tested bulls. Continuous semen importation was not an economically viable alternative. The strategy utilizing young bulls progeny of imported bulls (PIB) was only viable if imports were from countries which are >2.00 SD in genetic merit above the local dairy cattle population. The ranking of strategies was not sensitive to changes in genetic parameters but to economic parameters. The use of local semen from young bulls progeny of local proven bulls is recommended. Alternatively, PIB can be utilized but the semen will have to be imported from countries which are >2.00 SD above the local dairy cattle population or the cost of imported semen should be < or = US$40 per straw.