Economic evaluation of neonatal health protection programs for cattle

J Am Vet Med Assoc. 1998 Sep 15;213(6):810-6.

Abstract

Objective: To develop an economic tool that can be used to help cattle producers evaluate benefits of neonatal health programs.

Design: Computer simulation of a multiple-year spreadsheet model, using economic and production variables.

Sample population: Records for a university research farm beef herd.

Procedure: Data from the university research farm beef herd for each year from 1990 to 1995 were evaluated to determine economic benefits for the cow-calf enterprise that would result from a decrease in morbidity and mortality. A baseline economic evaluation of returns to variable costs was performed, using actual production and marketing information. Actual economic performance was contrasted with a projected simulation in which morbidity and mortality were decreased. Sensitivity analysis for the simulation model assessment of a neonatal health program was also performed.

Results: Mean-per-cow increase in net income for the herd during the 6-year period for morbidity and mortality reductions of 20, 40, and 60% was $7.44, $14.93, and $22.42, respectively. Sensitivity analysis revealed that net income per cow was not sensitive to errors in projections of morbidity and mortality.

Clinical implications: Identifying potential economic benefits for implementing a neonatal health plan and quantifying the costs to implement each component of the plan can be used by veterinarians and their clients when formulating a proactive strategy to provide the greatest potential for economic reward.

MeSH terms

  • Animals
  • Animals, Newborn
  • Cattle
  • Cattle Diseases / economics*
  • Cattle Diseases / epidemiology
  • Cattle Diseases / prevention & control*
  • Computer Simulation*
  • Evaluation Studies as Topic
  • Female
  • Models, Economic*
  • Morbidity
  • Preventive Health Services / economics
  • Records / veterinary