oltjen w-2177 report 2009.ppt
TRANSCRIPT
Cost-Benefit analysis of NAIS implementation in California
Jim Oltjen
4/2/2009 W-2177 Committee
NCBA, Denver
Project At a Glance
Coordinators Jim Oltjen & Bees Butler UC, John Evans & Victor Velez CDFA Cooperators Dave Daley CSU-Chico, Mike Hall Cal Poly San Luis Obispo
Species Beef, Dairy, Sheep, Goats
Survey CSU-Chico & Cal Poly-San Luis
Model UC-Davis
Survey Process
Survey design Survey data Summary statistics
Survey Process
Survey design Survey data Summary statistics
UC Model to compare identification methods
Visual identificationRFID identification – tags
Static – hand held readerDynamic – panel reader
Costs Benefits
Equipment
Materials
Service Fees
Labor
Compliance - Health
Marketing
Management
Premise Reg.
Animal ID Event Record
Event Report
V = Voluntary V 0 0 0
V* = V for all animals V V 0 0
M = Mandatory V V V 0
0 = No M/V* 0 0 0
M/V* V 0 0
M/V* V V 0
M M/V* 0 0
M M/V* V 0
M M M/V* 0
M M M M
Beef cow-calf flow:
Culling rate20.0%
Calf rate 87.0%
Calf crop
Death rate 2.0%
Heifers sold
100
Open heifers
30.0%
30
70
Pregnant heifers
Pregnancy rate
70.0%
198
Calves for sale
298
305
Intended to sale66.5%
Saved for replacement33.5%
Cows herd
350
Culled cows
Bulls 11
3.0%
70
Animals inventoried per yr:
Bulls 11
Cows 350
Live calf crop 298
Saved heifers 100
Total inventory 759
Readings per yr:
Bulls 1 11
Cows 2 700
Live calf crop 1 298
Saved heifers 1 100
Total readings 1,109
Average readings/yr 1.5
Cost Model (excerpt, Beef cow-calf size=350)
Labor cost ($/h) 15.00
Visual ID
RFID Static
RFID Dynamic
Time for ID application (s) 10.0 10.0 10.0
Time to transfer codes to DB (s) 5.0 1.0 1.0
Time to register premises (s/yr) 200 200 200
ID set-up time (s) 60 900 900
Average no. of head processed 175 175 175
Time to learn ID tech (s) 600 14400 14400
Data error rate 6.0% 1.0% 1.0%
Dynamic (panel) reading efficiency 95.0%
Time for extra-readings (s) 23.6 2.6 2.7
Cost Model (con’t)
Equipment costs
Handheld (HH) reader lifetime (yr) Stationary (panel) reader lifetime (yr) Applicator lifetime (yr) IT lifetime (yr) Readers ownership sharing (%) Applicator No. & price ($) HH reader No. & price ($) Stationary (panel) reader No. & price ($)
Cost Model (con’t)
HH reader lifetime (yr) 5.0
Stationary reader lifetime (yr) 5.0
Applicator lifetime (yr) 5.0
IT lifetime (yr) 5.0
Readers ownership sharing 100.0%
VisualID
RFIDStatic
RFIDDynamic
Applicator No. & price ($) 20.00 20.00 20.00
HH reader No. & price ($) 800.00 800.00
Stationary (panel) reader No. & price ($) 2500.00
Dynamic (panel) reading efficiency 95.0%
NAIS Scenario 10: Beef cow-calf, 350 herd size
Premise Reg. Animal ID Event Record Event Report
M M M M
Cost
($/animal/yr) Cost ($/yr)
Visual ID RFID Static Dynamic Visual IDRFID Static Dynamic
Labor 0.364 0.080 0.081 276 61 61
Services 0.450 0.450 0.450 341 341 341
Materials 0.513 0.863 0.863 390 655 655
Annual 1.328 1.392 1.393 1007 1057 1057
Ave periodic equipment 0.221 0.432 1.091 168 328 828
Ave costs 1.549 1.825 2.484 1175 1385 1885
Initial costs 2.43 3.55 6.85 1847 2697 5197
NAIS scenarioScen. | P.Reg. | A.ID. | Ev.Rcd. | Ev.Rpt. Key
5 | V | V | 0 | 0 1
Beef Cow-calf: Visual ID & Voluntary
NAIS scenarioScen. | P.Reg. | A.ID. | Ev.Rcd. | Ev.Rpt. Key
10 | M | M | M | M 1
Beef Cow-calf: Visual ID & Mandatory
ID in general:
Labor costs are relatively minor compared to the costs of equipment and materials (ear-tags).
ID-Most of the variation is due to size--the larger operations have reduced cost
RFID-Most of the variation is due to the costs of equipment – the RFID readers you have.
(Most of the variation for the VID is also due to equipment - in this case computer )
Cost Findings
Compliance benefit in year 0.50
Managememt benefit in year 3.00
Marketing benefit in year 25.00
NAIS scenarioScen. | P.Reg. | A.ID. | Ev.Rcd. | Ev.Rpt. Key
10 | M | M | M | M 1
Beef Cow-calf: RFID handheld & Mandatory
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
0 1 2 3 4 5 6 7 8 9 10
Year
US
$
PV Costs PV Benefits NPV
Animal ID May Aid in Animal ID May Aid in Production EfficienciesProduction Efficiencies
Individual animal identification systems Provide the information on an animal’s performance from weaning to harvest Enables the identification of individuals with the most profitable genetic merit
Use performance measurementsManage animals Sell off low performing cattle before spending additional dollars
UC Beef Production Research Update
Supplement composition for dry rangeFat depot modelingParentage via DNABeef System Records IntegrationWestern Quality Assurance RecertificationManagement Model for use of IDBeef Feedlot Emissions
Dry range 600 lb heifers
Tub UCDIntake, lb/d 1.63 0.77Gain, lb/d 0.27 0.60Cost, relative 1.00 0.33
Net energy
Protein
Maintenance Fat
Visceral(kg)
Sub(kg)
Intra(kg)
Inter(kg)
12/13th
Rib fat(mm)
CarcasscharacteristicsDavis Growth Model
KPH(kg)
KPH(%)
IMF(%)
Bull output varies a lot !
Calf Output per Bull
2220
17 1716
1514
1311
108
75
43 3 3
2
0
5
10
15
20
25
"1-8
"
"01"
"6
14"
"202
"
"1-6
"
"0-5
"
"9-3
"
"1-7
"
"302
"
"616
"
"174
"
"1-3
"
"1-2
"
"0-6
"
"1-9
"
"1-5
"
"3-5
"
"3-3
"
Bull ID
No
. Ca
lve
s
Introduction BQA History
The BQA program connects producers with animal scientists, veterinarians, feed suppliers, animal health companies, packers, retailers, and state and federal regulators. The program encourages producers to use the latest science and technology so their beef will meet quality and safety standards.
Management Model for Use of ID
A management decision support tool (modifying a cowherd simulation model) to use in educational (extension) settings. Thus, for whatever the variables that describe a particular operation's management, the estimated value of the benefits is projected into the future.
Feedlot Air Emissions
UC Beef Production Research Update
Supplement composition for dry rangeFat depot modelingParentage via DNABeef System Records IntegrationWestern Quality Assurance RecertificationManagement Model for use of IDBeef Feedlot Emissions
Questions ?