Proposed Animal Welfare Standards and Guidelines for Cattle


A3.4 Incremental cost of banning the use of dogs on calves less than 30 days old without their mothers – Variation C4



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A3.4 Incremental cost of banning the use of dogs on calves less than 30 days old without their mothers – Variation C4

The acceptable use of dogs for handling and mustering of young cattle is an important issue for the cattle industry in the context of cattle training. Early training programs greatly facilitate the later handling of adult cattle and result in less stress to stockpersons and cattle. However, the management of calves less than 30 days old is largely a dairy industry issue; and is largely restricted to the use of dogs on replacement female calves.


As with the Australian Animal Welfare Standards and Guidelines for the Land Transport of all commercial livestock, dog use on livestock – namely calves – is considered in the context of mustering and in livestock handling facilities. Standard SB4.7 of the Land Transport Standards and Guidelines requires that dogs must not be used to move bobby calves. However this would only be relevant in the instances where dogs are currently being used.
For the purpose of estimation it is assumed that 1,440 dogs are used (see part A2.3 for discussion) which includes 1% of dogs used in beef cattle farms and 100% of dogs used in dairy cattle farms. Similarly, it is assumed that dogs are used 10271 times a year to muster calves and to replace such dogs would involve 5 min of additional time for a farmhand to replace each dog in the mustering activity (i.e. 5 min per dog). It is acknowledged that under the base case the use of dogs on calves in Victoria would not be permitted.
As shown in Table A3.13, the 10-year incremental cost of banning the use of dogs on calves less than 30 days old under Variation C4 would be approximately $0.63m or $0.42m in 2012-13 present value dollars.
Table A3.13 – 10-year incremental cost of banning the use of dogs on calves less than 30 days old by state and territory under Variation C4 –2012-13 dollars


Jurisdiction

No. Beef and dairy farm dogs

(p)272

Hrs required to replace dogs

(k3^) = 5/60*10*(p)

Annual cost

(k3’) = (k3^)*(h)273

10-year cost

(k3’’) = (k3’)*10

NSW

539

449

$22,790

$227,895

VIC

-

0

$0

$0

QLD

394

328

$16,226

$162,264

SA

166

138

$6,747

$67,468

WA

108

90

$4,933

$49,328

TAS

232

193

$12,554

$125,543

NT

1

1

$35

$352

ACT

0

0

$10

$98

Australia

1,440

1,200

$63,295

$632,948

Present value 7% discount rate

 

 

$415,473

3% discount rate

 

 

$524,192

10% discount rate

 

 

$353,563

A3.4.1 Incremental cost of Variation C4 from the base case

The total 10-year incremental cost all standards under Variation C4, as compared to the base case, would be approximately $36.95m in 2012-13 dollars, as shown in Table A3.14.


Table A3.14 – Summary of quantifiable 10-year incremental cost of proposed standards under Variation C4 by state and territory – 2012-13 dollars


Proposed Standard

NSW

VIC

QLD

SA

WA

TAS

NT

ACT

TOTAL

5.4

$659,785

$389,080

$466,945

$112,425

$109,972

$63,219

$6,169

$1,239

$1,808,834

5.5

$149,593

$0

$106,511

$44,287

$32,379

$82,408

$231

$65

$415,473

Variation of 5.6

$2,024,782

$229,303

$197,529

$194,584

$219,592

$259,843

$0

$0

$3,125,633

5.7

-$204,786

$15,285

$69,570

$6,111

$12,105

-$17,012

$8,377

$46

-$110,304

6.2

$0

$430,408

$1,407,205

$0

$271,041

$0

$202,620

$1,722

$2,312,996

6.4

$1,761,608

$1,414,142

$2,863,233

$0

$571,919

$0

$405,240

$3,444

$7,019,585

6.7

$0

$0

$2,744,628

$0

$119,428

$0

$233,819

$0

$3,108,356

6.8

$0

$0

$10,695,563

$0

$460,940

$0

$937,775

$0

$12,094,279

6.9

$0

$0

$498,747

$0

$21,494

$0

$43,730

$0

$563,971

7.2

$629,210

$626,245

$709,701

$249,252

$123,855

$139,955

$84,251

$941

$2,563,410

8.4

$130,859

$0

$57,447

$56,591

$39,028

$121,752

$0

$0

$405,677

9.2

$126,876

$721,321

$93,545

$44,965

$26,727

$0

$0

$0

$1,013,433

9.3

$339

$23,966

$0

$0

$0

$5,975

$0

$0

$30,280

10.2

$9,167

$4,028

$21,198

$1,889

$3,328

$794

$3,741

$15

$44,162

10.4

$91,299

$45,434

$205,956

$18,083

$35,943

$10,154

$24,450

$136

$431,455

11.5

$234,522

$1,419,300

$170,856

$81,537

$56,523

$157,587

$0

$0

$2,120,325

Total PV -7% discount

$5,613,253

$5,318,511

$20,308,636

$809,724

$2,104,276

$824,673

$1,950,403

$7,608

$36,947,566

Taking the total 10-year incremental cost of the standards in each state or territory in 2012-13 dollars (in Table A3.14) and the number of cattle in each state or territory (in Table A2.5) - the average cost per cow ranges from $0.64 in the SA to $1.61 in QLD, as shown in Table A3.15.


Table A3.15 – Range of average 10-year cost per cow as a result of the proposed standards under Variation C4 by state and territory –2012-13 dollars





NSW

VIC

QLD

SA

WA

TAS

NT

ACT

TOTAL

Total

$5,613,253

$5,318,511

$20,308,636

$809,724

$2,104,276

$824,673

$1,950,403

$7,608

$36,947,566

Total herd

5,583,931

3,385,850

12,539,625

1,199,640

2,009,382

611,583

2,197,359

8,807

27,536,177

Cost per cow

$1.01

$1.57

$1.62

$0.67

$1.05

$1.35

$0.89

$0.86

$1.34

Note: Care should be taken in using the average cost per cow in a jurisdiction to interpret the impact of standards or variations on a particular industry sector or an individual farmer’s herd.



A3.4.2 Incremental cost of Variation C4 from Option B

The total 10-year incremental cost all standards under Variation C4 as compared to Option B (i.e. removing the incremental cost of proposed Code 5.5 (muzzling of dogs) and adding the alternative under Variation C4) would be approximately $0.41m in 2012-13 dollars. This is summarised in Table A3.16. Table A3.16 shows the 10-year incremental cost of Variation C4 as compared to Option B by state and territory. These estimates are provided from tables A3.13 and A2.25 in Appendix 2. The main impact of going to Variation C4 as compared with Option B would be on NSW.


Table A3.16 – 10-year incremental cost of Variation C4 as compared to Option B by state and territory –2012-13 dollars


Going from Option B to Variation C4

NSW

VIC

QLD

SA

WA

TAS

NT

ACT

TOTAL

Less proposed standard 5.5 under Option B274

$809

$0

$590

$249

$161

$347

$2

$0

$2,160

Plus alternative to proposed standard 5.5 under Variation C4275

$227,895

$0

$162,264

$67,468

$49,328

$125,543

$352

$98

$632,948

Net Difference between Option B and Variation C4

$227,086

$0

$161,673

$67,219

$49,166

$125,196

$350

$98

$630,789

PV (7% discount rate) Net difference between Option B and Variation C4

$148,886

$0

$105,996

$44,069

$32,238

$82,104

$229

$64

$413,587




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