Cost for 50kg sheep ($/head) 1.14 0.84 0.56 Maximum weight in mob (kg per head) 50 50 50 Average weight in mob (kg per head) 29.7 29.7 29.7 Dose for maximum weight (mL per head) 60 4 66 Dose for average weight (mL per head) 36 2 39.2 Cost per head without automed® ($/head) 1.14 0.84 0.56 Cost per head with automed® ($/head) 0.68 0.42 0.33 Table 3 Cost for animal health products with and without automed® for ewes Drench Backline1 Injection Pour-on3 Number of sheep (head) 1500 1500 1500 1500 Dose for 50kg sheep (mL per head) 10 60 2 66 Cost for 50kg sheep ($/head) 0.35 1.14 0.74 0.56 Maximum weight in mob (kg per head) 88 88 88 88 Average weight in mob (kg per head) 73.2 73.2 73.2 73.2 Dose for maximum weight (mL per head) 18 106 4 116 Dose for average weight (mL per head) 15 88 3 97
Table 6 Results of NPV analyses NPV BCR Pay-back period (years) Lower priced products $17 474 17.2 1 Higher priced products $26 390 25.8 1 With purchasing a weighing crate Lower priced products $8 974 1.6 5 Higher priced products $17 891 2.8 1 The details for the initial investment cost, annual cost and annual benefits are in Appendix 1. When the analysis is extrapolated to larger sized flocks economies of scale are evident; as the flock size increases the NPV and BCR increase, Table 7. 7. NPV and BCR at different flock sizes Without a weighing crate With a weighing crate Number of mated ewes Lower priced products Higher priced products Lower priced products Higher priced products 2000 NPV $22 314 $23 736 $13 814 $25 155 BCR 22 32.8 2.3 3.8 Pay-back (yrs.) 1 1 4 1 3500 NPV $40 560 $60 290 $32 000 $51 950 BCR 39 58 4.8 7.5 Pay-back (yrs.) 1 1 2 1 5000 NPV $58 952 $89 290 $50 450 $78 943
BCR 57 84 7.3 11.3 Pay-back (yrs.) 1 1 2 1 Conclusion and discussion The benefits of the automed® appear simple, including a correct and precise dosage of animal health product related to bodyweight and improvement in effectiveness of the animal health treatment. Given these benefits it is a technology many sheep producers will be interested in testing on their own properties. This analysis assumes that the automed® system is an add-on to a system already several technologies, namely electronic ear tags, an EID reader and sheep handling equipment with capacity to weigh the animals. Therefore, the additional cost for the applicator and subscription is a small investment to achieve financial gains from savings in consumption of animal health products. The additional advantages of recording the data and using it for decision making for productivity and animal welfare benefits were not valued. For farmers without technologies, the minimum piece of equipment required to use the automed® system is a weighing crate and indicator with the capacity to talk to the automed® device. The minimum cost for this equipment is estimated to be $8500. This capital investment reduces the NPV and BCR, although it remains a positive investment, especially when using higher value products and with larger flock sizes. Correct application of drench, vaccine and backline has the potential to improve productivity and reduce the risks associated with resistance to animal health products. The value of these additional benefits is very difficult to assess, but it adds to the already attractive proposition of the automed® system. Further, there is a benefit in having a complete record of animal health treatments for on-farm inventory audits, or if selling to an abattoir or feedlot. There were difficulties experienced with the introduction of the new equipment. These included hardware problems as well as connectivity problems. Access to parts in a timely manner and after sales technical support is vital with the introduction of any new electronic equipment. In summary, even though the NPV, BCR and payback period on the automed® look very favourable, it needs to be considered in the context that purchasing an automed® is ‘value adding’ a previous purchase of sheep handling equipment. Therefore, purchasing the automed® system can’t be considered as a standalone investment within the sheep enterprise. This technology has financial benefits for most situations, larger flock sizes have more to gain, especially if the infrastructure for weighing animals is already available.