ECONOMIC IMPACT OF CALF MORTALITY ON DAIRY FARMS IN KUWAIT

Abstract

Objective of this study was to investigate the economic impact of mortality of pre-weaned calves on dairy cattle enterprise in Kuwait. Cost/benefit analysis model was applied to two different situations: in the first situation, a baseline scenario, field survey data without intervention using 1,280 newborn calves was used in first calving season. In the second situation, the intervention scenario (improved management), 665 newborn calves were used in second calving season during the following year. Calving seasons extended for 7 months from September to March. Calf performance studies were conducted from birth to weaning. Economic model was constructed on Microsoft Excel and used to evaluate the impact of calf mortality on calf enterprise. Results showed that gross margins increased from 13 to 35% as a result of implementation of intervention measures during the second calving season over baseline scenario. A significant correlation between increased veterinary expenses and an increase in revenues (r2 = 0.65, P<0.05) was observed. If the intervention measures such as colostrum feeding, nutrition and hygiene had not been implemented, the farms would have lose income from 12 to 51% of the gross revenues. Net income was influenced by costs of feeds, veterinary services and laborers. Discounted cash flow studies on a whole farm basis revealed that the impact of interventions was small (0-3%). Calf mortality could not be isolated from whole farm for assessing its impact on dairy farm economics. Economic studies demonstrated the cost/benefits of using the improved techniques of calf rearing.