The Elite Wagyu Sale is held in conjunction with the annual Australian Wagyu Association Conference and is an opportunity to present animals and genetic material for sale that can be demonstrated to be in the top 10% of Wagyu Estimated Breeding Values.
At the 2017 Wagyu Expansion Conference, those present witnessed the strength of market sentiment for these Elite lots on the open market. Of particular interest for buyers were lots with high Fullblood Terminal Index (FTI) values.
Considering the carcase specific nature of this index for ranking animals based on terminal (carcase) profitability, we are changing the name of the FTI to the Terminal Carcase Index (TCI) to enable buyers to better recognise that this index is a predictor of relative carcase value of slaughter progeny only and does not take into account aspects of fertility and maternal merit of the breeding female.
How is it calculated?
The calculation used for generating the Terminal Carcase Index utilises the Carcase Weight EBV and the Marble Score EBV of an animal to provide an estimate of the genetic contribution to the value of the carcases of their slaughter progeny.
The assumptions used to calculate the TCI are a base price of $8.50/kg carcase weight and an increase/decrease in value of the carcase of $1kg per marbling score.
It is assumed that only half of the difference in EBVs will be passed on to the value of the carcase from slaughtered progeny because only half the genes come from the sire or dam. For example:
If a sire has a Carcase Weight EBV of 0 and a Marble Score EBV of +0.0 it will have an Index of zero.
If a sire has a Carcase Weight EBV of +20kg and a Marble Score EBV of +2.0 the value of the additional 10kg of carcase weight is $85 (10kg @$8.50) and the value of one additional marble score to the carcase is $430 (430kg@$1).
The sire will have an Index of +$515 ($85 + $430). This sire is estimated to add an average of $515 to the carcase value of its slaughtered progeny compared to a sire with an Index of zero.
If a sire has a carcase weight EBV of -20kg and an Marble Score EBV of -2.0 the reduction in value due to the reduced carcase weight will be -$85 (-10kg @ $8.50) and the reduction in value due to one less marble score to the carcase will be -$410 (410kg @ $1). The sire will have an Index of -$495 (-$85 -$410). The value of the carcases from the slaughtered progeny of this sire is estimated to be on average $495 less than a sire with an Index of zero.