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Oltjen W-2177 Report 2009.ppt

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  • 1. Cost-Benefit analysis of NAIS implementation in California Jim Oltjen 4/2/2009 W-2177 Committee NCBA, Denver
  • 2. 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
  • 3. Survey Process
    • Survey design
    • Survey data
    • Summary statistics
  • 4. Survey Process
    • Survey design
    • Survey data
    • Summary statistics
  • 5. UC Model to compare identification methods
    • Visual identification
    • RFID identification – tags Static – hand held reader Dynamic – panel reader
  • 6. Costs Benefits
    • Equipment
    • Materials
    • Service Fees
    • Labor
    • Compliance - Health
    • Marketing
    • Management
  • 7. 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
  • 8. 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
  • 9. Cost Model (excerpt, Beef cow-calf size=350 ) Labor cost ($/h) 15.00 Visual ID RFID Static RFID Dynamic Time for ID application (s) 10.0 10.0 10.0 Time to transfer codes to DB (s) 5.0 1.0 1.0 Time to register premises (s/yr) 200 200 200 ID set-up time (s) 60 900 900 Average no. of head processed 175 175 175 Time to learn ID tech (s) 600 14400 14400 Data error rate 6.0% 1.0% 1.0% Dynamic (panel) reading efficiency 95.0% Time for extra-readings (s) 23.6 2.6 2.7
  • 10. Cost Model (con’t)
    • Equipment costs
    • Handheld (HH) reader lifetime (yr)
    • Stationary (panel) reader lifetime (yr)
    • Applicator lifetime (yr)
    • IT lifetime (yr)
    • Readers ownership sharing (%)
    • Applicator No. & price ($)
    • HH reader No. & price ($)
    • Stationary (panel) reader No. & price ($)
  • 11. 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% Visual ID RFID Static RFID Dynamic Applicator No. & price ($) 20.00 20.00 20.00 HH reader No. & price ($) 800.00 800.00 Stationary (panel) reader No. & price ($) 2500.00 Dynamic (panel) reading efficiency 95.0%
  • 12. NAIS Scenario 10: Beef cow-calf, 350 herd size Premise Reg. Animal ID Event Record Event Report M M M M   Cost ($/animal/yr) Cost ($/yr) Visual ID RFID Static Dynamic Visual ID RFID 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
  • 13. Beef Cow-calf: Visual ID & Voluntary Beef Cow-calf: Visual ID & Mandatory NAIS scenario Scen. | P.Reg. | A.ID. | Ev.Rcd. | Ev.Rpt. Key 5 | V | V | 0 | 0 1 NAIS scenario Scen. | P.Reg. | A.ID. | Ev.Rcd. | Ev.Rpt. Key 10 | M | M | M | M 1
  • 14.  
  • 15.  
  • 16. 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
  • 17.  
  • 18.  
  • 19.  
  • 20.  
  • 21. Beef Cow-calf: RFID handheld & Mandatory   Compliance benefit in year 0.50 Managememt benefit in year 3.00 Marketing benefit in year 25.00   NAIS scenario Scen. | P.Reg. | A.ID. | Ev.Rcd. | Ev.Rpt. Key 10 | M | M | M | M 1
  • 22. Animal ID May Aid in Production 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 measurements
      • Manage animals
      • Sell off low performing cattle before spending additional dollars
  • 23. UC Beef Production Research Update
    • Supplement composition for dry range
    • Fat depot modeling
    • Parentage via DNA
    • Beef System Records Integration
    • Western Quality Assurance Recertification
    • Management Model for use of ID
    • Beef Feedlot Emissions
  • 24.  
  • 25. Net energy Protein Maintenance Fat Visceral (kg) Sub (kg) Intra (kg) Inter (kg) 12/13 th Rib fat (mm) Carcass characteristics Davis Growth Model KPH (kg) KPH (%) IMF (%)
  • 26. Bull output varies a lot !
  • 27.  
  • 28. 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.
  • 29. 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.
  • 30. Feedlot Air Emissions
  • 31. UC Beef Production Research Update
    • Supplement composition for dry range
    • Fat depot modeling
    • Parentage via DNA
    • Beef System Records Integration
    • Western Quality Assurance Recertification
    • Management Model for use of ID
    • Beef Feedlot Emissions
  • 32. Questions ?

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