Evaluation of sheep industry dynamics on the development and commercialisation of SNP parentage assay

Summary

​The paper presents an assessment of the value of DNA parentage testing. Most of the perceived benefit is from increasing selection accuracy, which is about 20%, and a handle to manage inbreeding. The increased selection accuracy is relatively easy to predict, although it does assume that breeders select objectives that are similar to those used by Sheep Genetics. The value of inbreeding management is more difficult to quantify. Inbreeding may not be a huge concern for an individual breeder, unless he does not open his flock to any outside material.
A cost benefit analysis at the population level shows that investment in parentage testing is beneficial but DNA testing is less cost effective than conventional mothering up. The reason is a very small difference in benefit in terms of selection accuracy and a higher cost. To be cost effective, DNA testing cost should not exceed those of mothering up. The Pedigree Match Maker, however, seems more cost effective than the other two methods for parentage recording.
The cost benefit evaluation at a flock level appeared not beneficial for DNA parentage testing. The model assumed that costs of obtaining parentage were fully passed on through ram sales, and the benefit was evaluated only for a flock buying these rams. All parentage test methods took at least 5 years before they have a higher return than a no pedigree method. The pedigree Match maker seems most cost effective, but this technology has not been used widely so far. In the flock model, conventional mothering up showed lower return than PMM but higher returns than DNA parentage tests and a strategy of no pedigree recording. At flock level the cost benefit is less favourable than at population level because of the lower multiplier effect between stud breeder and client. The flow-on benefit from improved offspring of the client to lower tier levels was not taken into account. This is not reasonable from a sector approach, but maybe realistic for a flock approach as it could be more difficult to recoup invested cost through ram sales.
Overall, the results show that DNA parentage methods are unlikely to be more beneficial than other methods. The Pedigree Match Maker seems more profitable. These comparisons are mostly determined by the cost of each method, as the assumed benefit is very similar. The PMM method assumes an initial investment and no subsequent running cost, but the method might need more practical evaluation.
There are a number of practical aspects associated with the various parentage testing methods and those have not all been covered in this paper. However, there is no doubt that these more practical considerations maybe ultimately more important in determining the commercial value of parentage testing.