Cost of Implementing AI Technology This Breeding Season

May 27, 2016

By Taylor Grussing

SDSU Extension Cow/Calf Field Specialist SDSU Animal Science Department

With the heart of the breeding season nearing for most commercial cattlemen across the country, we often hear that there isn’t enough time in the day to get everything done. Between wrapping up the calving season, preparing cows and calves for pasture turnout, starting field work, making a grazing plan and now thinking about breeding season, there is a lot on everyone’s plate. For these reasons, many producers prefer to turn out herd bulls to take care of the breeding while they are in the field. However, buying bulls isn’t always the easiest and comes at a lofty price some years. Therefore, it’s important to remember that there are alternative ways to introduce new genetics of superior quality into your herd each year without purchasing new bulls. Today, there are several resources available to assist producers in getting cows bred during the breeding season with the use of artificial insemination (AI) and custom AI services.

SDSU Extension AI Schools

SDSU Extension State and Field Specialists host AI schools each year across the state for participants to attend and learn its techniques and proper semen handling. These 3-day schools, cost $400 to register, and are open to anyone across the country. This school, along with others hosted in the industry, are the best place to learn how to successfully AI and then implement this technology into the herd yourself. Contact Taylor Grussing for more information on upcoming SDSU Extension AI Schools.

Custom AI Companies

If you don’t desire to practice and perfect the AI skills yourself, there are several custom AI companies available to help you utilize this technology and successfully breed all females in the herd. In addition, custom collection of herd sires can be done to further increase the number of progeny from a specific herd sire. Service providers can take care of as much or as little of the work as desired with price varying based on the resources used (Table 1).

Supplies	High	Low	Average
Materials (gloves, sheaths, lube, paper towels, etc.)	$5.00	$1.00	$3.00
Technician Labor (arm service only)	$10.00	$5.00	$7.50
Synchronization Labor	$6.00	$3.00	$4.50
Equipment/Chute Fee	$3.00	$1.00	$2.00
Synchronization Drug Cost	$20.00	$3.00	$11.50
Semen Cost (highly variable)	$35.00	$15.00	$25.00
Total Cost per Head	$79.00	$28.00	$53.50
Total Cost per Pregnancy (Assuming 65% 1st Service Conception Rate)	$122	$43	$82

Table 1. Estimates for Custom AI costs per head, broke down into high, low and average categories

Some variables to keep in mind with the above prices include:

Number of head in group: larger groups may cost less per head
Location of service: clinic vs. on farm
Equipment: do you have your own chute/breeding box or do you need to rent one?
Experience of Technician: more experience may cost more but return better results
Amount of Labor: arm service only vs. synchronization + arm service
Type of protocol used: Fixed TAI vs. Estrus Detection & Clean up AI
Amount of semen purchased: volume discounts available with large purchases

Cost Considerations

When comparing the expenses of AI School and custom AI fees with the average price of purchasing a new herd sire in 2016, producers have some decisions to make based on the goals of the operation. Assuming an average bull purchase price of $5,000, $900 annual maintenance cost, $2,000 salvage value, and 20 calves per year, the price per pregnancy in year 1 would be $195.

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