Estimating return on investment of 3D cameras in dairies | Dellait

Summary

Maximizing efficiency and minimizing costs are paramount in today’s dairy production systems. In an industry where every penny counts, technological innovations play a crucial role in reshaping traditional practices, and one such innovation is the integration of 3D cameras.

In this article, we explore the economic advantages of adopting 3D-imaging technology (3DIT) in U.S. dairy farms, analyzing some key areas of savings and potential return on investment (ROI). Some of these areas are lameness detection, reproductive efficiency, body condition scoring, ketosis and feed efficiency.

ROI, a livestock producer’s best friend

ROI assesses how much money you get back compared to how much you put in. It helps you figure out if something is a good investment or not. The ROI for any new technology applied in a dairy farm context can typically be calculated as Figure 1.

Where:

Net profit = revenue generated – total costs

Initial investment = cost of purchasing and implementing the 3DIT

This formula provides a percentage that represents the profitability of the investment relative to its cost. A positive ROI indicates the investment has generated profits, while a negative ROI indicates losses.

To determine the annual ROI of implementing 3DIT, we need to start by evaluating the total costs and benefits of the specific areas improved by this technology. Examples of such areas include lameness, reproductive efficiency, ketosis and feed efficiency, and their interconnection with body condition score (BCS). Let’s explore the economic impact of each of these areas.

Lameness

Lameness remains a prevalent issue in dairies, adversely affecting both cow well-being and their productivity. Research has explored its economic impact by quantifying the direct costs associated with treatment together with reduced cow productivity. Insights from veterinarians, industry data and dairy associations have established baseline figures for lameness-associated costs of between $100 and $400 per cow per year.

A recent study published in the Journal of Dairy Science looked at the incidence and costs of digital dermatitis, interdigital dermatitis, interdigital phlegmon, sole ulcer and white-line disease. The most prevalent foot disorder was digital dermatitis, followed by interdigital dermatitis, sole ulcer, white-line disease and interdigital phlegmon. Housing conditions significantly influenced the prevalence of sole ulcer and white line disease, while scraping frequency and footbath application thresholds were major determinants of digital dermatitis occurrence. Average costs per lame cow were determined to be $308 per year.

Continue reading this article published in Progressive Dairy.