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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
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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 identification • RFID identification – tagsStatic – hand held reader Dynamic – panel reader
Costs Benefits • Equipment • Materials • Service Fees • Labor • Compliance - Health • Marketing • Management
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 ($)
Beef Cow-calf: Visual ID & Voluntary Beef Cow-calf: Visual ID & Mandatory
Cost Findings 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 costRFID-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 )
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
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
Carcass characteristics Davis Growth Model 12/13th Rib fat (mm) Net energy Sub (kg) Fat Maintenance IMF (%) Intra (kg) Visceral (kg) Protein Inter (kg) KPH (kg) KPH (%)
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.
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