December 2014 Proof Changes

2015 Genetic Base Change Will start with December 2014 Genetic Update Average PTAs for cows born in 2010 are set to zero for all traits except: Calving ease and stillbirth (set to breed average) Somatic Cell Score (centered at 3.0) Magnitude and direction of the base change for each trait reflects the genetic progress made in the last 5 years. Source: CDCB – https://www.cdcb.us/News/News.htm

Base Change for Key Traits Unit Holstein Jersey Milk Pounds 382 327 Protein 12 Fat 17 19 Productive Life Months 1.0 0.8 Somatic Cell Score Log (base 2) -0.07 0.04 DPR % 0.2 PTAT 0.99 0.53 Udder Composite 0.92 0.33 Foot and Let Composite 0.78 0.15 * For a complete list of traits visit: http://aipl.arsusda.gov/reference/base2014.htm

TPI: Current Formula Source: HolsteinUSA 2014

TPI: New Formula Effective December 2014 December adjustment: DPR replaced with new Fertility Index (FI) Addition of a Feed Efficiency Index (FE) Conformation returns to 2010 emphasis of ~25% Source: HolsteinUSA 2014

TPI Trait 2011 Weight Dec. 2014 Weight Protein 27% Fat 16% PTA Type 10% 8% Dairy Form -1% UDC 12% 11% FLC 6% PL 9% 7% SCS -5% DPR n/a DCE -2% DSB Fertility Index (FI) 13% Feed Efficiency Index (FE) 3% Category Weight Production 46% Conformation 26% Health 28% TPI Source: HolsteinUSA 2014

Fertility Index (FI) Fertility Index Composite formula 64% daughter pregnancy rate (DPR) 18% heifer conception rate (HCR) 18% cow conception rate (CCR) Goal: maintain rate of improvement in cow fertility Weight for new trait comes from: 11%: DPR 2%: PL Source: HolsteinUSA 2014

Fertility Index (FI) CCR HCR Measures a lactating cow’s ability to conceive The percentage of inseminated cows pregnant at each service HCR = 1 means lactating daughters of this bull are 1% more likely to become pregnant during lactation than daughters of an HCR=0 bull HCR Measures a virgin heifer’s ability to conceive The percentage of inseminated heifers pregnant at each service HCR = 1 means non-lactating daughters of this bull are 1% more likely to become pregnant as a heifer than daughters of an HCR=0 bull Source: HolsteinUSA 2014

Feed Efficiency Index (FE) $ Value of milk produced feed cost of extra milk extra maintenance costs Weight comes from: 2%: PTA Type 1%: UD Source: HolsteinUSA 2014

Traits Impacting Efficiency Production Type Milk Udder Composite (UDC) Fat Foot and Leg Composite (FLC) Protein *Body Composite (BDC) Management *Stature Productive Life (PL) *Dairy Form *Somatic Cell Score (SCS) Daughter Pregnancy Rate (DPR) *Daughter Calving Ease (DCE) *Traits have negative values *Daughter Still Birth (DSB)

New TPI Formula More clearly rewards “efficient” cows Top half of US Holsteins, ranked by TPI, produce +$159 through feed efficiency per lactation compared to bottom half Continues positive trend in cow fertility Correlates positively to higher scored cattle Rate of stature increase will be slowed Should better reflect the average farmer’s goals Increased efficiency, smaller size, better fertility Maintain emphasis on good uddered, strong cows Impact of extremely high PL values will decrease Source: HolsteinUSA 2014

Lifetime Net Merit (NM$) NM$ is a selection index for commercial dairy producers used for all breeds. Based on US economic values for a market that rewards both fluid milk production and components. Goal: produce cattle that will be profitable under future market conditions (3 to 5 years in the future). Cheese Merit (CM$), Fluid Merit (FM$), and Grazing Merit (GM$ - new!) offer predictions for producers based on system/market. Source: Cole 2014

Genetic Merit of Marketed Holstein Bulls Average gain: $85.60/year Average gain: $52.00/year Average gain: $19.77/year Source: Wiggins 2014

New NM$ Formula December 2014 Why does the formula change? New traits more accurately match the biology of the cow Economic conditions change Trait definitions can change Why are these specific changes happening? The export market is stronger than anticipated, adding stability to and increasing the price of US milk Beef prices are extremely high Replacement values are relatively low The industry is self-correcting for SCS Source: Cole 2014

Lifetime Net Merit Changes Trait 2010 Weight Dec. 2014 Weight Milk 0% -1% Fat 19% 22% Protein 16% 20% PL SCS -10% -7% UDC 7% 8% FLC 4% 3% BDC -6% -5% DPR 11% HCR n/a 2% CCR 1% CA$ 5% Category Weight Production 43% Conformation 16% Health 41%

NM$ Index Explained CA$ HCR/CCR A calving sub-index for Holsteins and Brown Swiss Contains daughter and sire data Holsteins: stillbirth, calving ease Brown Swiss: calving ease Other breeds receive 1.05 adjustment to all other traits HCR/CCR Will share fertility weight with DPR Source: Cole 2014

New Index: Grazing Merit (GM$) Will be calculated to meet unique management conditions of grazers Primary changes: More emphasis on fertility Less emphasis on longevity Will not include dairy form Due to access to type records Source: Cole 2014

Summary of Merit Index Changes Trait NM$ 2010 CM$ 2014 FM$ GM$ Milk -1 -9 23 Fat 19 20 22 Protein 16 24 18 PL 10 SCS –10 -7 -3 -6 –7 UDC 7 6 8 FLC 4 2 3 BDC –6 -5 -4 –5 DPR 11 HCR … 1 CCR 5 CA$ Source: CDCB – https://www.cdcb.us/News/News.htm Source: C

Jersey Performance Index (JPI) Changes Trait Previous Weight Dec. 2014 Weight Protein 42% 43% Fat 15% Functional Trait Index PL 12% 10% SCS -6% DPR 7% CCR n/a 2% HCR Category Weight Production 58% Conformation 15% Health 27% JPI Source: HolsteinUSA 2014

New Jersey Performance Index (JPI) Expected annual gains from JPI2015 5.2 pounds PTA Protein 6.2 pounds PTA Fat 6.7 days Productive Life Improvement in Somatic Cell Score and female fertility.

Take Home Message There will always be changes Genomic Predictions Daughter Proofs Formula Changes WWS will always have high bulls WWS continues to develop a diverse sire line-up that meets the genetic needs of all of our customers. Key is to select bulls that fit the customer’s goals, then regardless of changes, genetic progress of the herd will continue.