business analysis of dairy practice oabp fall ce meeting november 17, 2011 dick ward bright, ont

Business Analysis of Dairy Business Analysis of Dairy PracticePractice

OABP Fall CE MeetingNovember 17, 2011

Dick WardBright, Ont.


•HistoryHistory

•Key practice indicatorsKey practice indicators

•Professional Fees Actual & fee Professional Fees Actual & fee scheduleschedule

•Currently benchmark 6 clinicsCurrently benchmark 6 clinics

•Every 6 monthsEvery 6 months

•Fees analysisFees analysis

•Key Indicator BenchmarksKey Indicator Benchmarks

•VaccinesVaccines

•MastitisMastitis

•ReproductionReproduction

•Production enhancementProduction enhancement

Business Analysis of Dairy Practice

Professional Services


Clinic High Median Low

HourlyRate

$170 $180 $160 $155

AMCall fee

$40 $44 $35 $30

First Hr.Call fee

$210 $224 $200 $188

Benchmarking of Fees


$50,976.56

Current Hourly Rate $170.00

Proposed Hourly Rate

$180.00

Difference $10.00

Hours billed per vet per week 24.97

Opportunity Cost $50,976.56

Opportunity Cost

• Herd health dollars per cowHerd health dollars per cow

HighHigh Median Median Low Low

$68.67$68.67 $48.67 $48.67 $29.06 $29.06

$$


HoursHours billed per week: averagebilled per week: average

High Median Low

31.2331.23 22.9022.90 16.1216.12


Percent time billed: Professional FeesPercent time billed: Professional Fees

High Median Low

69.54%69.54% 51.21%51.21% 35.81%35.81%


Herd Health billings per vetHerd Health billings per vet

High Median High Median LowLow

$175,482.85$175,482.85 $89,976.54$89,976.54 $74,599.04$74,599.04


Product sales per veterinarian

High Median Low

$325,576.36 $242,930.46$242,930.46 $188,262.24



• Prevention / therapeutic index (%)Prevention / therapeutic index (%)

Clinics

A B C D E F High Med. Low

50.6

49.6

54.5

55.8

49.7

45.4

55.8

50.2

45.4

Mastitis


• Dry Cow Treatment Efficiency (%)Dry Cow Treatment Efficiency (%)

Clinics


75.3

76.0

88.6

80.7

78.7

86.3

88.6

79.7

75.3


• OrbeSealOrbeSeal®® Efficiency (%) Efficiency (%)

Clinics


51 37 48 50.5

33.5

32 51 42.5

32

OrbeSeal® - Pfizer Animal Health


• Lactating Cow Treatments – Doses per CowLactating Cow Treatments – Doses per Cow

Clinics


1.71 2.64 1.16 2.20 1.90 1.77 2.64 1.84 1.16

Biologicals


• Core MLV Vaccine per Cow ( Doses)Core MLV Vaccine per Cow ( Doses)

Clinics


1.59 1.10 1.75 1.69 2.02 2.51 2.51 1.72 1.10

Reproduction


• Prostaglandin – Doses per cowProstaglandin – Doses per cow

Clinics


1.96

1.55

1.64

2.53

1.28

2.17

2.53

1.80

1.28


• GnRH – Doses per cowGnRH – Doses per cow

Clinics


1.94

2.11

1.59

1.22

2.90

3.24

3.24

2.02

1.22


• IVP4 Devices – Doses per 100 cowsIVP4 Devices – Doses per 100 cows

Clinics


7.46

6.54

7.37

8.56

18.5

33.9

33.9

8.01

6.54


• RumensinRumensin® ® CRC Boluses per 100 cowsCRC Boluses per 100 cows

Clinics


37.4

25.5

43.7

41.2

40.3

53.9

53.9

40.7

25.5

Rumensin® CRC – Elanco Animal Health


• Product Purchases per Cow ($)Product Purchases per Cow ($)

Clinics


76.24

71.22

71.14

92.39

76.16

89.84

92.39

76.20

71.14

Veterinary Clinic Dairy Producer Report

Summary

Cost per cow

cost per hectolitre of

milk efficiency high low

Biologics $12.05 $0.124 76.82% $26.32 $4.45

Mastitis $39.18 $0.402 230.00% $49.08 $17.35

Reproduction $31.24 $0.320 172.41% $57.55 $13.98

CRC $17.25 $0.177 85.40% $19.23 $12.20

Antibiotics $8.05 $0.083 $75.59 $12.81

Anti inflammatories $6.49 $0.067 $22.27 $1.95

Endectocides $13.38 $0.137 $21.08 $0.00

Miscellaneous Drugs $32.20 $0.330 $39.59 $15.34

Total drug cost $159.83 $1.639 $223.37 $110.02

P/T Index 61.08% 77.09% 42.59%

total vet supplies & drugs $24,627.23 $1.741

total vet supplies per cow $169.84

Total Professional Fees $11,522.78 $0.815

total professional fees / cow $79.47 $2.56


SummarySummary

• Focus on preventative areasFocus on preventative areas•Promote with confidencePromote with confidence

•monitor and improve uponmonitor and improve upon

• Science and Economics Science and Economics •these areas should be the driver to make decisions these areas should be the driver to make decisions

for producer ie OrbeSealfor producer ie OrbeSeal®®, vaccines, Rumensin, vaccines, Rumensin®® CRCCRC

•Send the same message among Send the same message among veterinariansveterinarians


SummarySummary

• Focus on professional serviceFocus on professional service• Drug margins decreasingDrug margins decreasing

• Need to schedule herd health and Need to schedule herd health and time for other programs time for other programs

• ie udder health; calf managementie udder health; calf management

•Make time for other programs Make time for other programs • maximize vet time for vet work and less administration; hire more helpmaximize vet time for vet work and less administration; hire more help


SummarySummary

• Involve Associates in business Involve Associates in business discussions & philosophydiscussions & philosophy

• 4-5 different opinions does not instil producer confidence4-5 different opinions does not instil producer confidence

• Inventory management Inventory management • Select products on science and economicsSelect products on science and economics

• Avoid “Walmart” marketing of productsAvoid “Walmart” marketing of products

• Thanks Thanks

business analysis of dairy practice oabp fall ce meeting november 17, 2011 dick ward bright, ont

Documents

mastitis slide

cow clinics abcdef highmed

cow high median low

professional services

opportunity cost slide

cow prostaglandin doses

cow gnrh doses

cows clinics abcdef