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A calculation example: Payback time Nedap Heat Detection system


Nedap Heat Detection makes it possible to achieve and maintain the best performance from each animal. Better returns and increased profit result in a fast payback time. Naturally, the earnings and payback time depend on market conditions and your own personal starting point as a dairy farmer. However, to give you an idea, here is an example of how the payback time can be realised.

For this example we will assume:  

"¢ A dairy farm with 120 cows.
"¢ An average earning of ‚¬2 per cow per day of shorter calving interval*.
"¢ An average semen price of ‚¬40 per dose.

Payback time Nedap Heat Detection system  
 

          COSTS

    The purchase price of a Nedap Heat Detection system for a farm with 120 cows is   ‚¬ 13,000  


          EARNINGS

  "¢ On this farm, the calving interval is reduced from 400 to 385 days
    Earnings from reduction time of calving interval: (400-385) x ‚¬ 2 x 120 =                       ‚¬ 3,600 per year
  "¢ The farm 's insemination number drops from 2.5 to 2.2
     More efficient insemination earns this farm: (120 x 2.5 x ‚¬40) - (120 x 2.2 x ‚¬40)       ‚¬ 1,440 per year

    "¢ Annual earnings for the use of Nedap Heat Detection                                                               ‚¬ 5,040


          PAYBACK PERIOD

    Purchase price / annual earnings
    ‚¬13,000 / ‚¬5,040                                                                                                                                = 2.6 years


Please note: labour savings, a lower calving age of heifers and possible lower health costs have not yet been included in this calculation example

* Assuming an average situation in Europe, where reduction of the calving interval earns between ‚¬1 - ‚¬3 per cow per day.

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For more than 30 years Nedap has developed and produced automation processes for livestock farming which are sold worldwide.

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