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P.PSH.0852 - Reducing the financial impact of endemic conditions in sheep - a value chain approach

Enhancing the sharing of disease and defect data along the supply chain.

Project start date: 31 December 2017
Project end date: 30 July 2022
Publication date: 23 April 2024
Project status: Completed
Livestock species: Sheep, Lamb
Relevant regions: National

Summary

Diseases and other conditions in sheep contribute to substantial economic losses throughout the red meat value chain in Australia. Given the importance of the sheep industry to the Australian economy, it is necessary that disease and defect conditions in sheep are minimised since they have an impact on the efficiency in the production of meat and wool.

The purpose of this project was about monitoring, analysing, and acting to reduce the prevalence of endemic disease and defect conditions in sheep processed in South Australia through a value chain approach. The project goal was to enhance the flow of animal health information to drive both on farm and supply chain performance.

Objectives

1. Explore options and trial an individual animal recording mechanism rather than the current 5% increment approach.
2. Quantify the cost of major condition occurrence within each supply chain.
3. Identify key epidemiological risks and causes for conditions of major financial impact.
4. Develop a business case for a national comprehensive monitoring (>50% of sheep killed) program for the benefit of producers and supply chain partners.

Key findings

• High impact conditions were identified by industry experts to focus on six conditions: arthritis, rib fractures, pneumonia, pleurisy, sheep measles and grass seed infestation. An additional two conditions identified by the University of Adelaide project team: cheesy gland (CLA), and lungworm.

• Epidemiological analysis using Principal Component Analysis (PCA) revealed there were differences in the prevalence of the conditions and producer groups based on their consignment patterns. These results show that large scale producers who regularly consigned sheep and lambs had higher rates of conditions.

• Across the Australian sheep industry, the estimated losses in income (excluding prevention and control costs on-farm) for both producers and processors were highest in sheep with arthritis, grass seeds lesions, rib fractures and pleurisy. Pneumonia had the lowest impact in income loss, and lungworm had no impact on weight loss.

• The majority of producers that participated in the workshops and who received some form of feedback indicated that it was beneficial, and the fact sheets provided by PIRSA through the EAS program was the most useful aspect. However, they did express that this is dependent on how easy it is to implement or make the changes, and on the associated the economic losses with the conditions.

• The investment and on-going annual costs of implementing the animal disease and defect feedback system for processors indicated that investment in a feedback system provides a positive return-on-investment over a 10-year period, based on a net present value (NPV) model.

Benefits to industry

This project has quantified the losses incurred by South Australian sheep producers and processors associated with the eight conditions studied. To make effective changes, producers need to have sufficient knowledge about these conditions and the potential impact based on the occurrence of the condition within the flock.

Providing data on the quantifiable impact on lamb carcases, and cost of these conditions may motivate producers to prioritise limited resources for the development of control and prevention strategies.
The analysis showed that investing in an animal (sheep) disease and defect feedback system produced a positive return on investment for processors based on the expected reduction in seven conditions.

MLA action

To enhance the sheep disease and defect reporting in Livestock Data Link (now MyFeedback) to provide improved feedback to producers.

To get additional sheep processing plants adopting the draft Australian National Standard for the Development, Collection and Reporting of Animal Disease and Defect Data and providing this feedback to their producers.

Align the draft Australian National Standard for the Development, Collection and Reporting of Animal Disease and Defect Data with the National Sheep Health Monitoring Program.

Future research

It was recommended that further research was undertaken to explore technologies to support individual disease and defect capture to enable feedback to be more easily shared along the supply chain.

More information

Project manager: Verity Suttor
Contact email: reports@mla.com.au
Primary researcher: University Of Adelaide