Proposed Animal Welfare Standards and Guidelines for Cattle

A2.21 Summary of 10-year quantifiable costs of the proposed Standards – Option B

A summary of 10-year quantifiable costs of the proposed Standards under Option B is summarised in Table A2.24. The total 10-year incremental quantifiable cost is estimated to be $55.1m or $36.51m in present value dollars using a 7% discount rate.

Table A2.24 – Summary of quantifiable 10-year incremental cost of proposed standards under Option B –2012-13 dollars

Proposed Standard	10-year cost	PV cost - 7% discount rate	PV cost - 3% discount rate	PV cost - 10% discount rate
5.4	$2,755,649	$1,808,834	$2,282,160	$1,539,297
5.5	$2,160	$1,886	$2,036	$1,785
5.6	$4,761,711	$3,125,633	$3,943,530	$2,659,878
5.7	-$168,042	-$110,304	-$139,168	-$93,867
6.2	$3,523,708	$2,312,996	$2,918,247	$1,968,333
6.4	$10,693,911	$7,019,585	$8,856,430	$5,973,587
6.7	$4,692,360	$3,108,356	$3,900,988	$2,655,999
6.8	$18,424,899	$12,094,279	$15,259,042	$10,292,094
6.9	$859,176	$563,971	$711,548	$479,933
7.2	$3,905,200	$2,563,410	$3,234,189	$2,181,433
8.4	$618,024	$405,677	$511,832	$345,226
9.2	$80,612	$30,280	$54,499	$17,576
9.3	$14,629	$5,495	$9,890	$3,190
10.2	$67,278	$44,162	$55,718	$37,581
10.4	$657,296	$431,455	$544,356	$367,163
11.5	$3,135,766	$2,120,325	$2,629,672	$1,828,074
Total	$55,169,990	$36,533,979	$45,858,754	$31,213,001

A summary of 10-year quantifiable costs of the proposed Standards by state and territory under Option B in 2012-13 present value dollars by state and territory is summarised in Table A2.25.

Table A2.25 – Summary of quantifiable 10-year incremental cost of proposed standards under Option B 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	$707	$0	$516	$218	$141	$303	$2	$0	$1,886
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	$338.61	$23,966.48	$0.00	$0.00	$0.00	$5,974.87	$0.00	$0.00	$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	$5,464,367	$5,318,511	$20,202,641	$765,655	$2,072,038	$742,569	$1,950,173	$7,543	$36,533,979

Taking the total 10-year incremental cost of the standards in each state or territory in 2012-13 dollars (in Table A2.25) 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 A2.26.

Table A2.26 – Range of average 10-year cost per cow as a result of the proposed standards under Option B by state and territory –2012-13 dollars

	NSW	VIC	QLD	SA	WA	TAS	NT	ACT	TOTAL
Total	$5,464,367	$5,318,511	$20,202,641	$765,655	$2,072,038	$742,569	$1,950,173	$7,543	$36,533,979
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	$0.98	$1.57	$1.61	$0.64	$1.03	$1.21	$0.89	$0.86	$1.33

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.