CattleNetwrok.com, KS
05-10-07
KLA: Loss Of Animal Health Products Would Be Costly
A study conducted at Iowa State University (ISU) shows the economic impact of
pharmaceutical technologies yield a direct cost savings to producers of $365 per
head. According to study author and ISU economics professor John
Lawrence, selling prices would have to increase by 36% to cover the increase in
costs without these technologies.
Lawrence also analyzed these results using the Food and Ag Policy Research
Institute model of U.S. agriculture to estimate the impact on beef production,
price and trade if these pharmaceutical products were not available. These
calculations indicated there would be a 14% smaller calf crop, 18% reduction in
total beef produced, 180% increase in net beef imports and 13.5% increase in
retail beef prices. Lawrence suggested pork and poultry production would expand
to fill the void left by decreased beef supplies.
Because deworming programs have a significant impact on pregnancy rates,
survival and weaning rate, the overall impact of eliminating pharmaceutical
technologies would cost the cow-calf segment $225 per head. Lawrence ’s study
showed taking away implants, ionophores, antibiotics, beta-antagonists and
dewormers would reduce efficiency at the feedlot level by $126 per head.