economics to support mastitis decisions

Supporting farmers with mastitis decisions

Henk Hogeveen

Who am I

Farm boy (dairy farm, 45 cows)

Animal science at Wageningen Univesity

●Epidemiology (simulation model of management around cystic ovaries)

●Economics (long term effect of herd health management programs)

PhD at Vet Medicine (AI programs to diagnose mastitis)

Working in field of animal health managementIn between Wageningen University and Faculty of Vet. Med.

●@henkhogeveen

●animal-health-management.blogspot.com

Mastitis is …….

A welfare problem

A production problem

A nuisance to the farmers

An economic problem

Decision making is weighting these aspects and choose that option that gives the highest fulfillment of goals

What to expect?

Mastitis from an economic perspective

Costs of mastitis

●Farmers own estimation

Benefits of improved management

Economics as motivator

Conclusions

Economics of mastitis

InputCapital Buildings Equipment Feedstuffs Health care …..

LabourLand

OutputMain product Milk

Side products Calves Meat …..

Dairy farm

After: McInerney, 1996



LabourLand

Satis-faction



Other inputCapitalLabourLand

OutputFresh milkCheeseDeserts……

Dairy farm Dairy processor Consumption



LabourLand

Satis-faction

Mastitis








LabourLand

Satis-faction

Mastitis

1. Lower efficiency








LabourLand

Satis-faction

Mastitis

1. Lower efficiency2. Lower suitability for processing








LabourLand

Satis-faction

Mastitis

1. Lower efficiency2. Lower suitability for processing3. Less satisfaction








LabourLand

Satis-faction

Mastitis

1. Lower efficiency2. Lower suitability for processing3. Less satisfaction4. Lower societal value






Effects

Lower efficiency

Lower suitability for processing

Less satisfaction

Lower societal value

What to expect?


Costs of mastitis




Conclusions

Recent literature (€)

Bar

2012

Halasa

2009

Hagnestam-Nielsen

2009

Huijps

2008

Level Cow Cow Cow-year Cow

Milk production losses - 11 78 36

Labour - 11 - 4

Treatment - 14 - 15

Culling - 46 - 22

Death - 0 - 0

Veterinarian - 2 - 1

Milk quality - 0 - 0

Materials - 0 - 0

Diagnostics - 0 - 0

Total 61 84 97 78

Spain (€)

Spain

2012

Spain 2012 Huijps

2008

Level Herd (150) Cow Cow

Milk production losses 21,344 143 36

Labour 878 6 4

Treatment 13,280 89 15

Culling 3,040 20 22

Death - - 0

Veterinarian 120 1 1

Milk quality 0 - 0

Materials 0 - 0

Diagnostics 0 - 0

Total 38,661 258 78

Using tool: www.bec.wur.nl -> research -> decision support tools

http://www.bec.wur.nl/

Differences

Netherlands Spain

Incidence clin mastitis (cases/100 cows/year 30 78

Costs milk prod. losses (€/kg) 0.12 0.27

BMSCC (*1,000 cells/ml) 220 230

Visit costs (€/visit) 20 20

Drug costs (€/treatment) 20 60

Value labour (€/hour) 18 10

Culling costs (€/culled case) 480 380

Research

Default cost calculations

●Based on literature and expertise

●Clinical mastitis: Yearly incidence

●Subclinical mastitis: Bulk milk somatic cell count

●Conservative estimations

Data collection

●64 dairy farms

●Data entry at “open farm days”

●Assistance from researcher

Theory vs practise (€/cow/year)

DefaultMean Low High

Production losses subclinical 16 36 6.8 72.4

Production losses clinical 23 10 2.5 22

Veterinarian (€/cow/year) 0.3 0.6 0 2.5

Drugs 6 10.6 3.5 26.7

Discarded milk 9 7.9 2.5 17.9

Culling 22 17.9 0 46

Penalties 0 0.30 0 2.4

Labor 4 3.8 0 15

Total economic losses 81 78 31.4 153.8

Farm specific

What’s behind this

Default Mean Low High

Costs milk prod. losses (€/kg) 0.12 0.07 0.03 0.10

Visit costs (€/visit) 20 24 0 67.8

Drug costs (€/treatment) 20 33 17.5 73.5

Value labour (€/hour) 18 19 0 30

Culling costs (€/culled case) 480 383 0 750

Farm specific

Real vs expected costs (n=64)

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Expected costs (€ per cow)

Rea

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5 good estimators

Too high estimation

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13 over estimators

Too low estimation

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46 under estimators!!!!!

What to expect?


Costs of mastitis




Conclusions

Prevention

Effectiveness of management is important to know

●Lack of clinical trials

●Only on treatments (AB, dipping, etc.)

●Based on expertise estimates have been made (Huijps et al., 2010).

●Underestimation of effectiveness by veterinarians?

●Preventive programs do work (Green et al., 2009)

Costs of mastitis, prevention

Half definition until now

Definition of costs of an animal disease (McInerny et al., 1992):

Costs = Losses + Expenditures

●Loss : Benefit taken away (milk production, culling)

●Expenditures : Extra input into livestock production (treatment and preventive measures)

My definition

●Failure costs: Costs associated with occurrence of mastitis

●Preventive costs: Costs associated with prevention

IntroductionFailure

Costs

Preventive costs

Optimal prevention

hogev102

Ik neem aan dat je dit figuur goed uitlegt? Eventueel kun je al de figuur nemen die ik voor NZVetJ gemaakt hebl, die spreekt al over failure costs en preventive costs. Ik dacht dit bij te kunnen voegen, maar zie datik dat niet bij me heb hier.

Study into total costs of mastitis on Dutch dairy farms

Questionaire dataset of 189 farms (Santman-Berends et al., 2011)

●General questions

●Livestock management

●Lactating cows

●Milking process

●Feed

Pathogens and clinical mastitis on 120 farms

MPR data

Calculations of failure costs clinical mastitis, subclinical mastitis

Preventive measures

Cleaning cubicles

Cleaning lanes

Drying off

Pre-stripping

Clean dirty udders

Milker gloves

Clean cluster after clinical case

Milk high SCC cow last

Post milking teat disinfection

Fixing cows after milking

Total costs mastitis (€/cow)

Average 5% percentile

95% percentile

Clinical mastitis 62 16 151

Subclinical mastitis 14 9 21

Failure costs mastitis 76 26 164

Prevention costs 88 43 131

Costs of masitits 164 99 281

Failure costs vs preventive costs

hogev102

Ik zou beginnen met één slide, waarin je de totale kosten weergeeft, opgedeeld naar diverse onderdelen.

hogev102

Deze zin kun je weglaten. Ik heb dit meer in het kopje gezet, de rest zeg je erwel bij

What to expect?


Costs of mastitis




Conclusions


Study to investigate (quantify) farmers motivative factors for a change in mastitis management

With special attention to bonus vs penalty system

Conjoint analysis, 100 farmers

●Systematically varying the motivation features in a questionnaire

●Measuring the preferences of the farmer

●Calculate preferences for individual features

Source: Valeeva et al., 2007

Features of motivation

Are you motivated to change your mastitis management to decrease the BMSCC if:

● It leads to better cow health/welfare

●You will get a financial reward (bonus/penalty)

● 50 farmers question as bonus

● 50 farmers question as penalty

● It is easier to fulfill legal requirements

●Your pleasure in work increases

● It leads to lower economic losses

●You get recognition

●The quality of the dairy products are better

Motivative factors

Premium (n = 40) Penalty (n = 43)

Job satisfaction 17.41a (1) 14.90agij (2)

Overall situation on the farm 15.81abc (2) 14.89bfhj (3)

Economic losses 14.23bdgj (3) 14.39abcehi(4)

Animal health and welfare consciousness 13.95cfgh (4) 14.51ck (5)

Ease in meeting regulatory requirements 12.45def (5) 9.59d (6)

Extra financial incentive based on bulk milk

SCC 11.35ehij (6) 16.43efgk (1)

Dairy product quality and image 8.63i (7) 8.66d (7)

Recognition for a job well done 6.13 (8) 6.63 (8)

Total 100.00 100.00

Clusters

3 clusters could be distinguished

●Farmers motivated by Premium/penalties

●Farmers motivated by an Efficient (well-organized farm) that easily complies with regulations

●Farmers motivated by basic economics

No relation between cluster and other variables

There is more than economics

Attitude explains mastitis situation (Jansen et al., 2009)

Campaigns do have an influence (Jansen et al., 2010)

Cost factors are not regarded as being equal (Huijps et al, 2009)

Sometimes farmers behave irrational (Huijps et al., 2010)

What to expect?


Costs of mastitis




Conclusions

Economics to support decisions

Mastitis costs money

●Most expensive cattle disease present

●Many new studies; failure costs:€ 80-100/cow/year)

●Spain € 258/cow/year ??

●Total costs (including prevention) is much higher

●Differences and underestimation between farmers -> farm specific calculations

Decision support is weighing costs of prevention vs reduction of failure costs

●That is up to you, veterinarians!!!

●Tool on www.bec.wur.nl -> research -> decision support tools

More than only money to motivate farmers

http://www.bec.wur.nl/

Thank you for your attention

economics to support mastitis decisions

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