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Economic Aspects of Economic Aspects of Trichomoniasis: Effects on US Trichomoniasis: Effects on US
Cattle Herd Cattle Herd
NIAA/USAHA Joint Forum on Trichomoniasis StandardsOmaha, NebraskaApril 3, 2014
David P. Anderson
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OverviewOverview
• Texas Industry • Economic Impact• Ranch Level Impact
TrichTrich
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TX Industry AssumptionsTX Industry Assumptions
• 20 Percent of Herds– Herd vs cattle– Last data about 150,000 operations
• Weighted Average of Weaning Rates– 85% on 80% of cattle– 73% on 20% of cattle
• Estimated Number of Calves Not Produced
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TX Industry AssumptionsTX Industry Assumptions
• 90 Day Calving Interval
• Other Scenarios Are Reasonable
• Tradeoff– Chose to go with 90 interval– Impact of disease on number of calves rather
than weights– Can assume longer calving interval, more calves
but lighter weights
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ImpactImpact
• Lose Approximately 96,000 Calves– Lost potential
• About 2.5 Percent Fewer Calves• At 2013 Average Prices $95 Million in
Revenue– Cow/Calf Value– Revenue that was not realized
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ImpactImpact
• If evaluated at Feedlot, Finished Level– 96,000 more fed cattle
• Total Revenue Lost– $156 million
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Couple Other CommentsCouple Other Comments
• Given Infrastructure Losses of Late– 96,000 more fed cattle is a pretty good
size feedlot– 96,000 more head for a packing plant
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Representative Ranch Representative Ranch AnalysisAnalysis
• AFPC Representative Ranches• Representative Ranches Guthrie
– 335 cows– Used to be 500 before the drought
• Base and 1 Scenario– Base 85 percent weaning – Trich scenario 73 percent weaning
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Change in Revenue, NCFI, 2016Change in Revenue, NCFI, 2016
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Ranch Level ImpactsRanch Level Impacts
• Decline in Revenue and NCFI– 9%, 81%, respectively
• Significant Impact on Ranch Economics
• Annual Effects– Cumulative over time is large
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Remaining WorkRemaining Work
• Formalize Alternative Scenarios– Alternative calving intervals– Impacts on number of calves and calf
weights
• Extend Analysis to Representative Ranches in Other States
• Write the Analysis Up and Publish– Get analysis out to wider audience