TY - JOUR
T1 - Economic evaluation of neonatal health protection programs for cattle
AU - Larson, R. L.
AU - Pierce, V. L.
AU - Randle, R. F.
PY - 1998/9/15
Y1 - 1998/9/15
N2 - 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.
AB - 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.
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U2 - 10.2460/javma.1998.213.06.810
DO - 10.2460/javma.1998.213.06.810
M3 - Article
C2 - 9743719
AN - SCOPUS:0032529996
SN - 0003-1488
VL - 213
SP - 810
EP - 816
JO - Journal of the American Veterinary Medical Association
JF - Journal of the American Veterinary Medical Association
IS - 6
ER -