Economics Grazing Animals Flashcards Preview

PMVPH > Economics Grazing Animals > Flashcards

Flashcards in Economics Grazing Animals Deck (17)
Loading flashcards...

What is an extensive livestock system?

Low level of inputs, limited labour, produce msall amounts of product/unity land/animal
- found in areas with limited potential for alternative land use


What competition for resources are asscoated with extensive farming?

Other agricultural activities and off farm activities


Give examples of extensive farming systems making use of underutilised resources

- Sheep in wheat systems in Australia
- Fattenring sheep on turnip tops in UK


Which type of system (extensive v intensive) has highest veterinary costs? Which spends the highest proportion of costs on veterinary work?

- Highest ££ comes from intensive production
- Highest proportion of costings is in grazing livestock


What % cost is usually spent on animal health?



What can vet advice have an impact on?

- efficiency of food and forage
- overall productivity
- equipment
- labour and ksills needed


What is the gross margin?

Output-Variable costs
> does not take into account fixed costs


What types of losses may be incurred by the farmer?

- Visable losses (eg. deaths, v productivity)
- Invisible losses (eg. fertility problems, change in herd structure, public health risks)


Give examples of additional costs

Medicines, time needed to treat


Give examples of lost revenue

Access to better markets denied, suboptimal use of technology


When can an investment be said to be worthwhile?

When the AVOIDABLE LOSSES are greater than the COSTS OF CHANGE in disease status


What is partial budgeting?

additional costs and additional benefits - limited time frame, one production cycle/year
> sum of all variable cots vs. sum of all variable outputs
> (new costs + revenue foregone) - (costs saved + new revenue)


What is revenue foregone?

- income that would have been taken from those animals if treatment plan was not implemented (eg. milk produced from mastitis cows still fed to calves)


What are new costs?

Any cost associated with implementing the new treatement eg. vax, medicines, time needed to treat
- ^ food, bedding and husbandry due to less deaths if treatement successful


What are costs saved?

- treatemnts of sick animals, time needed to care for sick animals, cost of vax or current treatment regime


What is new revenue?

- extra income generated by animal health status
- ^ no/amount of produce, ^ quality


Remember to make spreadsheets for partial budget analysis