Dairy farm agricultural income should increase when sexed semen is used instead of unsexed semen. This study simulated three scenarios: using unsexed semen (N), using X sperm of Holstein and unsexed semen of Japanese Black (H), and using X sperm of Holstein and Y sperm of Japanese Black (HJ). Two management scenarios were considered: conventional management (CONV); and the use of Japanese Black semen with surplus cows to produce F1s where sufficient replacement female Holstein calves were obtained for maintenance (MAINT). In CONV, the agricultural incomes of H and HJ were 610000-2400000 yen higher than that of N. The agricultural income increased when the difference in the prices between Holstein males and average F1 male/female calves was 34000-50000 yen, that between Holstein male and female calves was 80000-110000 yen, and that between F1 male and female calves was 50000-90000 yen. Therefore, the agricultural income can be increased by using sexed semen to select calves of a more valued breed and sex.
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