Álvaro García
Some still nostalgically reminisce about the timeless imagery of cattle ranching—vast, serene horseback rides across sprawling landscapes, reflecting on the day’s work. Yet, this bucolic image, as quaint as grandpa milking old Betsy while fighting flies on a three-legged stool, scarcely aligns with today’s realities. Modern economic pressures necessitate a more forward-looking approach to livestock management. In the current competitive environment of livestock production, it is critical to embrace innovative technologies that enhance efficiency, profitability, and the well-being of cattle. Despite the value of close personal observation, technological advancements empower livestock producers to detect subtle changes in cattle behavior and health that might otherwise go unnoticed. Among these advancements, 3D camera technology stands out as a particularly promising tool, offering profound insights into herd management. Much like adjusting a lens from a blurred to a crisp, detailed view, the use of 3D technology in livestock management moves beyond traditional observation limits. This technology enables producers to transition from a grainy, imprecise understanding to a focused, detailed perspective on cattle behavior and health, thus enhancing decision-making with a level of precision previously unattainable. Critical to adopting this technology is the ability to evaluate the benefits and return on investment from integrating 3D imaging technology (3DIT) into beef cattle operations.
Return on investment (ROI)
Return on investment is the basis of any investment decision, providing a clear assessment of the economic gains relative to the initial investment. For beef producers, the ROI of implementing 3DIT hinges on their ability to drive productivity, improve management practices, and enhance overall profitability. By quantifying the expected returns, livestock producers can make informed decisions that maximize value for their operations.
Calculating the ROI for incorporating the 3DIT into a beef cattle operation involves assessing the initial costs against the financial gains accredited to their use. The ROI formula is a valuable instrument for assessing an investment’s efficiency or contrasting the performance of multiple options. For the context of a beef enterprise integrating 3DIT, the formula to use can be the following:
To apply this formula, one needs to define:
Cost of investment: This includes the purchase price of the 3D cameras and any associated costs for installation, training staff to use the technology, and any maintenance or subscription services required.
Net gain from investment: This is the additional income generated, or costs saved as a direct result of using the 3DIT, minus the operating costs of using the technology. Benefits that could contribute to net gain include:
- Improved feed efficiency by optimizing feeding strategies based on precise BCS.
- Reduced labor costs due to automated monitoring.
- Increased sale prices of cattle due to better health and condition monitoring.
- Decreased veterinary costs from early detection of health issues.
- Enhanced reproductive management leading to higher calving rates.
For a fair assessment, it’s essential to conduct a thorough cost-benefit analysis, considering both tangible and intangible benefits over the expected lifespan of the technology. Additionally, adjusting management practices to leverage the full potential of the 3DIT system can further enhance its value to the operation.
Depending on the specific factors and efficiencies gained from implementing 3DIT in a beef cattle operation it would not be unrealistic to expect a $8,000 yearly benefit from the following:
Improved feed efficiency
- Estimated annual savings: $2,000.
- This includes reduced feed wastage and more precise feeding strategies based on accurate body condition scoring.
Labor savings
- Estimated annual savings: $1,500.
- From reduced needs for manual labor in tasks such as health monitoring, body condition scoring, and behavioral analysis.
Increased sale prices of cattle:
- Estimated annual revenue increase: $1,000.
- Prediction of circularity in steaks can enhance the value of the cattle sold.
- Healthier and better-conditioned cattle, resulting from improved management practices facilitated by 3DIT, may command higher prices in the market.
Decreased veterinary costs
- Estimated annual savings: $1,000.
- Early detection of health issues can lead to reduced veterinary expenses by minimizing the occurrence and severity of illnesses.
Enhanced reproductive management
- Estimated annual revenue increase: $1,500.
- More effective reproductive management practices can lead to higher calving rates and improved breeding outcomes, increasing revenue from calf sales.
Other intangible benefits:
- Improved animal well-being, reduced stress, and enhanced operational efficiency, which are challenging to quantify in monetary terms but contribute to overall profitability and sustainability.
These figures add up to approximately $7,000, however they may vary depending on the specific circumstances and management practices of each operation. Conducting a detailed cost-benefit analysis would provide a more accurate breakdown of the potential financial gains from implementing 3DIT.
To calculate the ROI for the 3DIT system in the example scenario:
Initial Investment = $15,000
Annual Benefits = $7,000
ROI = (Annual Benefits – Initial Investment) / Initial Investment * 100
= ($7,000 – $15,000) / $15,000 * 100
= (-$8,000) / $15,000 * 100
≈ -53.33%
This calculation indicates a negative ROI of approximately -53.33% for the first year. However, as mentioned, it’s crucial to consider the ROI over the lifespan of the technology. With accruing benefits over the years, the initial negative ROI can turn positive. Based on this calculation, it would take just under 2 years to break even on the investment in the 3D camera system.
Identifying key installation points
In contrast to dairy farms where cows frequently move through a parlor, positioning 3D cameras in beef settings requires ingenuity. For range-based herds, potential locations might include:
- Feed and water stations: Areas visited daily by cattle.
- Entry/exit points: Capturing images as cattle enter or exit barns or shelters for feeding.
- Handling facilities: Installing cameras in chutes or alleyways used for routine management practices to assess cattle without additional handling.
In beef operations, cameras must capture essential data within the natural flow of cattle movement. Since the ideal assessment time per animal is around 30 seconds, like dairy, the system should:
- Utilize high-speed cameras: Capable of capturing high-quality images rapidly.
- Implement automated identification: Incorporate RFID or similar technology to identify each animal automatically as it walks close to the camera.
- Integrate with data analysis software capable of analyzing images in real-time to provide actionable items (i.e. Health monitoring, BCS, behavior patterns indicating stress or social issues within the herd).
Train personnel not only in the technical aspects of operating the 3D camera system but also in interpreting its data for informed decision-making. Gradual introduction can help cattle adapt without undue stress. Continuously monitor the system’s effectiveness post-implementation, adjusting camera positions or settings as needed based on collected data and encountered issues.
Where to place the camera
Consider the routine activities of your operation to determine the optimal placement for the 3DIT system. In concentrated animal feeding operations, regular pen cleaning is essential for maintaining hygiene and ensuring cattle well-being. This routine presents an excellent opportunity to strategically position the 3DIT system. Given the frequency of pen cleaning, which can occur daily, it naturally aligns with the need for cattle to pass by a camera system regularly. To maximize the system’s effectiveness, it’s essential to ensure that the animals move through the area slowly and in a single line, minimizing potential interference from pen mates during the camera’s scanning process. This might require some temporary portable modification of the cattle lane to narrow its width, and ensure animals walk a single line when switching pens.
Increasing operational efficiency
Emptying one pen at a time enables the operators to swiftly clean and prepare the pens for the next day’s use, maintaining operational efficiency. This results in several advantages such as:
- Structured movement: Creating a controlled environment where cattle move through a specific path ensures consistent, high-quality data capture, enhancing the accuracy of health assessments and behavioral analysis.
- Minimal disruption: Incorporating the recording process into the cattle’s natural movement between pens minimizes stress and eliminates the need for additional labor to manage the animals specifically for monitoring.
- Optimal camera placement: This placement provides an ideal location for the camera, allowing for predictable movement and orientation of the animals, improving the quality of captured images or videos.
- Efficient data collection: With all cattle passing through the lane, the system can efficiently collect comprehensive and up-to-date data on the entire herd.
To maximize the effectiveness of this approach, consider the design of the chute, choose appropriate camera technology, integrate data analysis software, and ensure staff are trained to interpret the data effectively. Linking two pens with a chute for 3D camera monitoring is a practical and efficient method for integrating advanced technology into beef cattle management. This approach enables precise health and behavior monitoring with minimal stress to the animals and disruption to the operation, leading to improved animal welfare and potentially enhanced productivity and profitability.
In summary, integrating 3DIT into beef cattle operations underscores its practical value and potential for significant returns. By adopting a systematic approach to cost-benefit evaluation, beef producers can make informed decisions that align with their operational goals. The transition from traditional observation methods to the precision of 3D cameras represents a strategic shift in cattle management practices. The benefits of improved feed efficiency, reduced labor costs, and enhanced herd health offer incentives for investment. However, success relies on a commitment to ongoing evaluation and adaptation to ensure that the technology delivers on its promises over time. The current evidence supports the strategic adoption of 3D cameras in beef cattle production. With careful planning and implementation, producers can anticipate favorable returns while contributing to the advancement of the industry.
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