35 Economic Considerations of Pre-Weaning Calf Health Management

Abstract

Abstract The impacts of bovine viral diarrhea virus (BVDv) and persistently infected (PI) are felt across the cattle industry. This project utilized data and parameters from a meta-analysis of reported results along with partial budgeting procedures to determine economic costs and benefits of herd and calf health management. A base herd of 100 head, consisting of 50 breeding females, 43 calves, and 7 replacement heifers and bulls was implemented. Ninety- six percent of cow-calf operations are uninfected from BVDv. Introduction of an enhanced health program as an uninfected herd resulted in a net loss of $7.64 per bred cow in the first year of the program and a net loss of $6.46 in year two. First-year costs were higher due to initial testing, while second-year costs did not include testing under the assumption that carriers were culled. Infected herds incurred net losses of health program implementation of $96.21 per bred cow for the first year but a gain of the program of $27.96 in year two. First-year losses were larger due to increased testing and eradication costs. Gains in the second year stemmed from increased productivity across the herd. Furthermore, gains were discovered beyond cow-calf operations. Evaluation of down-stream demand for calves (i.e., stocker operations) resulted in gains of $4.39 per stocker for a producer that retains ownership of their calves and $48.89 for producers purchasing calves from cow-calf operators (commercial). Commercial stocker operators benefited from fewer health issues without added cow-calf level costs. These results indicate cow-calf producers would carry the burden of the costs of managing, and attempting to eradicate, BVDv/PI across the industry. These results provide industry stakeholder groups and policymakers benchmarks for incentives to induce health programs, targeted largely at the cow-calf level