Persistency of lactation is a trait of economic importance in dairy ca
ttle because of its impact on fertility, health, and feed costs. When
level of production is based on a 305-day lactation, persistency also
affects returns from milk production for lactations with lengths diffe
rent from 305 days. The objective here was to quantify the impact of p
ersistency of lactation on feed costs and milk returns, relative to co
nstant 305-day yield. A bio-economic model that allowed for optimisati
on of insemination and culling decisions was used. For individual lact
ations of 305 days, persistency affected feed costs only but for other
lactation lengths, persistency had a greater impact on milk returns p
er lactation than on feed costs. Under an optimised insemination and c
ulling strategy, which resulted in an average calving interval of 12.4
months, the economic value of persistency was $13.6 (Canadian) per ph
enotypic standard deviation but increased with level of persistency. O
n a genetic standard deviation basis and with a heritability of 0.15,
the economic value of persistency was 3.4% relative to the economic va
lue of 305-day production. The economic value of persistency was almos
t tripled when average calving interval was 13 months. Consideration o
f health and reproductive costs will further increase the economic val
ue of persistency. Persistency had a substantial impact on optimum ins
emination decisions. With high persistency, insemination was profitabl
e longer into the lactation and the optimum time of first insemination
was delayed for high producing cows. (C) 1998 Elsevier Science B.V.