Profitability analysis of different reproduction methods with Dohne Merinos
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The management of new technology for farming is important, as it has an influence on the profitability of the farm. With the development of new technology, new breeding methods have been developed and have an influence on the profitability on a sheep farm. This article studies the difference in gross margins for three kinds of reproduction methods with sheep namely: Conventional, Artificial Insemination and Cervical Insemination. Four different scenarios have been developed and for each of the scenarios the gross margins have been calculated, according to the assumptions made in the scenario. This resulted in the comparison of the new breeding technology against the conventional technology, taking into account the all the different factors. It was found that with the use of new breeding technological methods in sheep (A.I. and C.I.) a producer can increase the profitability of his herd, despite the higher capital investment required.