DairyTalk 231: Two Indices, Two Markets: Understanding NM$ and RZ€ - by Helmut Demmelhuber

This article compares the economic breeding indices
NM$ (Net Merit Dollar) and RZ€
(Relative Breeding Value Euro), explaining why the same animal
can rank very differently depending on the system used. Although
both indices aim to predict lifetime profitability, they are
calibrated to distinct market realities. NM$ reflects the
structure of high-intensity US dairy production, while RZ€ places
greater emphasis on longevity, health traits, and labor costs
relevant to Central European farms. The text highlights why RZ€
is the most practical tool for German producers, while NM$
remains the global reference point in international genetic
trade. Understanding both indices allows breeders to identify
cattle that deliver value across diverse economic environments.