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What is extra scanning percentage actually worth?

August 18, 2011

The following are two hypothetical flocks each of 1000 ewes – they indicate that we can expect that a around 20% more lambs tailed for an increase in scanning of about 30%.

The calculations below show that a 1% increase in scanning over 1000 ewes is worth about $480 on the bottom line

These figures are based on ewe and lamb deaths as below:

So what is this really worth in a flock of 1000 ewes?

• there are 182 more lambs tailed
• of these 4% (7) die before sale, which leaves 175 lambs that will cost about $6 more for extras
• we need to keep an extra 11 ewe lambs
• therefore there are 164 more lambs to sell
• these will be on average about 2 kg lighter carcase weights at the same age
• therefore at lamb prices of $5.50 per kg ($100 for a 18.2 kg lamb), the extra 164 lambs will be worth $11 less (lighter carcasses) and will cost an extra $6 so that overall benefit works out at:
• 164 x ($100 less $11) = 164 x $89 = $14,570 less the extra costs of about $1050 (175@$6)
• so the benefit over 1000 ewes is about $13,500
• or about $13.50 per ewe to the ram for the 30% increase in scanning percentage
• or about $450 per one percentage point increase in scanning over 1000 ewes
• or $740 per one percentage point increase in tailing over 1000 ewes (although any extra feed costs have not been taken into account so it assumes that you are not short of feed, and you can carry the same number of ewes)

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Abacus Bio is the “genetic engine’ for Kelso, and leaders in genetic development for sheep in New Zealand. Abacus Bio’s Peter Fennessy works closely with Kelso, and following are some of his most recent observations. There is some really interesting stuff in here – please don’t hesitate to contact Matt Holden if there is anything you’d like to discuss further from this.