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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