Cost-effectiveness analysis of treatment alternatives for beef bulls with preputial prolapse.

OBJECTIVE: To develop an economic model for comparing cost-effectiveness of medical and surgical treatment versus replacement of beef bulls with preputial prolapse. DESIGN: Economic analysis. SAMPLE POPULATION: Estimates determined from medical records of bulls treated for preputial prolapse at our hospital and from information about treatment of bulls published elsewhere. PROCEDURE: Annual depreciation cost for treatment (ADC(T)) and replacement (ADC(R)) were calculated. Total investment for an injured bull equaled the sum of salvage value, maintenance cost, and expected cost of the treatment option under consideration. Total investment for a replacement bull was purchase price. Net present value of cost was calculated for each year of bull use. Sensitivity analyses were constructed to determine the value that would warrant treatment of an injured bull. RESULTS: The decision to treat was indicated when ADC(T) was less than ADC(R). In our example, it was more cost-effective for owners to cull an injured bull. The ADC(R) was $97 less than ADC(T) for medical treatment ($365 vs $462) and $280 less than ADC(T) for surgical treatment ($365 vs $645). Likewise, net present value of cost values indicated that it was more cost-effective for owners to cull an injured bull. Sensitivity analysis indicated treatment decisions were justified on the basis of replacement value or planned number of breeding seasons remaining for the bull. CLINICAL IMPLICATIONS: The model described here can be used by practitioners to provide an objective basis to guide decision making of owners who seek advice on whether to treat or replace bulls with preputial prolapse.

Use of performance ratios to calculate the economic impact of thin cows in a beef cattle herd.

OBJECTIVE: To determine gross income lost that was attributable to thin cows in a beef cattle herd, to estimate the cost of added nutrition necessary to prevent thin cows in the herd, and to determine the financial outcome of the improved nutritional practices. DESIGN: Prospective, observational study. ANIMALS: Four hundred and twenty-two Santa Gertrudis cows and their calves. PROCEDURE: At pregnancy examination in the fall of 1992, cows were assigned a body condition score (BCS), using a scale of 1 (emaciated) to 9 (obese), and the ratio of the productivity of BCS-3 and BCS-4 cow groups (thin cows), compared with the mean productivity of BCS-5 and BCS-6 cows (cows in good condition), was determined. Measures of productivity evaluated included pregnancy rates, weaning weights, and prices per hundredweight of calves. The performance ratios of BCS-3 and BCS-4 cows were multiplied by the mean gross income of BCS-5 and BCS-6 cows to calculate their gross income. This was then subtracted from the mean income of BCS-5 and BCS-6 cows to estimate the amount of lost gross income per thin cow. The cost of a nutritional program that would prevent thin cows in the herd was subtracted from the lost gross income of the thin cows to yield the amount of increased net income that could be generated from a nutritional program that would maintain cows in the herd at a BCS of 5 or 6. RESULTS: Cows with a BCS of 3 were 0.48 as productive, and cows with a BCS of 4 were 0.74 as productive as the average of the BCS-5 and BCS-6 cows combined. Each BCS-3 cow generated $215.06 less, and each BCS-4 cow generated $107.53 less gross income than the average gross income of BCS-5 and BCS-6 cows. The added cost of nutrition that would have reconditioned BCS-3 and BCS-4 cows to a BCS of 5.5 was $91.48/BCS-3 cow and $43.67/BCS-4 cow. Implementation of the reconditioning nutrition program the previous fall would have resulted in an extra net income of $123.58/BCS-3 cow and $63.86/BCS-4 cow, received over a 2-year period. The 262 thin cows in the herd accounted for a total net income loss of $19,897. CLINICAL IMPLICATIONS: The time of pregnancy examination is a strategic intervention point to estimate the past negative economic impact of thin cows and to implement a plan to prevent these losses in the future. Pregnancy examinations should be performed at least 100 days before the beginning of the calving season, and thin pregnant cows should be sorted into a special group and fed a reconditioning diet that will improve their body condition to an average BCS of 5.5 by the onset of the calving season.

Farm Financial Standards.

The Farm Financial Standards were developed by a national effort to encourage standardization. Standardization includes financial statement formats, terminology, and calculations for measuring financial position and format. Comparative analysis and education efforts are enhanced greatly by standardization. The Standardization Performance Analysis (SPA) system was developed on the basis of the performance standards for beef cattle and sheep enterprises. This article summarizes the Farm Financial Standards and illustrates the calculations with a worksheet.

Stocker/feeder cattle standardized performance analysis.

The Standardized Performance Analysis (SPA) for stocker/feed cattle is a recommended set of production and financial performance analysis guidelines developed specifically for the grazing, growing, and finishing phases of beef cattle production. Guidelines were developed by members of the National Cattlemen's Association (NCA), Extension Specialists, and the National Integrated Resource Management Coordination Committee to provide beef cattle producers with a comprehensive, standardized means of measuring, analyzing, and reporting the performance and profitability of an operation. This article describes and illustrates through an example the performance measures chosen. The NCA certifies software and education materials conforming to the Stocker/Feeder Guidelines.

Seedstock beef cattle: SPA.

The Standardized Performance Analysis (SPA) for seedstock beef cattle (SPA-SB) is a recommended set of production and financial performance analysis guidelines developed specifically for the seedstock cow-calf, replacement heifer, and the sale bull enterprises. These guidelines were developed by members of the National Cattlemen's Association (NCA) and the National Integrated Resource Management Coordinating Committee to provide beef cattle producers with a comprehensive, standardized means of measuring, analyzing, and reporting the performance and profitability of an operation. This article describes and illustrates through an example the performance measures chosen. NCA certifies software and education materials conforming to the Seedstock SPA Guidelines.