As part of the November 2023 improvements to the Euro-Star indexes, the background economic model was updated. The value of each trait unit e.g. each kg of carcass weight, each day of calving interval, etc. had a change in € value, to reflect changes in both market returns and input costs. This economic model is based on Teagasc research. A new TB trait was also included as well as a carbon cost on traits such as feed intake and milk.
Where does the €49 addition come from?
When the updates were made, the average Replacement Index was €49 lower than where it had been in the September 2023 evaluation. As farmers have become familiar with certain values as the “cut-offs” for the Euro-Star percentiles (e.g. €105 being the 4-star threshold), the decision was taken to add €49 to each animal’s Replacement Index to keep the star rating percentiles aligned to where they had been previously.
Does this mean that the genetic gain made over recent years has disappeared?
No. When assessing genetic trends, you look at the population of animals in each year over a defined period, using the current indexes. This ensures that you are comparing like with like. Whether the €49 had been added or not, the national population has made the exact same gains. Figure 1 shows the genetic trend of the Irish suckler herd on the Replacement Index, both with and without the €49 adjustment.
The gain from 2010 to 2024 has been €33, regardless of the adjustment. The most important element of any genetic evaluation process is that, regardless of the € index values, the animals are ranked correctly. Before the €49 adjustment was made to the Replacement Index, the ranking of all animals in the evaluation was exactly the same. The same animals would have been 5-stars and the same 1-star had the adjustment not been made. The only reason for the addition of €49 was to avoid farmers having to “recalibrate” to a new set of percentiles or “cut-off” values on the Replacement Index.