Economic evaluation of neonatal health protection programs for cattle

• Published in: Journal of the American Veterinary Medical Association Vol. 213; no. 6; p. 810
• Main Authors: Larson, R L, Pierce, V L, Randle, R F
• Format: Journal Article
• Language: English
• Published: United States 15-09-1998
• Subjects: 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 as Topic - veterinary
• ISSN: 0003-1488
• DOI: 10.2460/javma.1998.213.06.810

To develop an economic tool that can be used to help cattle producers evaluate benefits of neonatal health programs.
Computer simulation of a multiple-year spreadsheet model, using economic and production variables.
Records for a university research farm beef herd.
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.
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.
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.