The Economics

of providing clean drinking water over contaminated water for feedlots

  • Steer turnover = 90 days
  • Weight gain in 90 days = 300kg
  • (purchase at 400kg – sell at 700kg)
  • Potential weight gain = 20-28%
  • Sale value = $3.00 per kg

 

PotentiaL EXTRA INCOME per steer per annum

300kg x 20% (0.2) x  $3.00 per kg                                                                = $2.00 per day per steer

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                        90 days

= $720.00 p.a     Less plant capital & running costs

 

$720.00 per steer pa x 100 steers = $72,000 pa

 

APPROXIMATE CAPITAL AND RUNNING COSTS OF WATER TREATMENT PLANT PER 100 STEERS (WITHOUT LABOUR)

                                                                                                                           EXTRA INCOME PA

100 HEAD – 8,000 $ p.a                                        ie $72,000 - $8,000                    =$64,000 pa

 

                                                                                                                            EXTRA INCOME PA

200 HEAD – 9,000 $ p.a                                        ie $144,000 - $9,000                  =$135,000 pa

 

                                                                                                                            EXTRA INCOME PA

300 HEAD – 11,000 $ p.a                                    ie $216,000 - $11,000                =$205,000 pa

 

                                                                                                                             EXTRA INCOME PA         

400 HEAD – 13,000 $ p.a                                    ie $288,000 - $13,000                = $275,000 pa

 

                                                                                                                             EXTRA INCOME PA

500 HEAD – 15,000 $ p.a                                    ie $360,000 - $15,000                  = $345,000 pa

 

These costs include chemical coagulant, disinfectant, capital costs (amortised over 10 years), R&M and electricity.

* A similar calculation can be made for individual properties with livestock. It is up to the farmer to add in and calculate the appropriate figures. 

*Figures quoted are for illustration purposes only and no guarantees are given. Figures are estimates only and are based on readily available information via way of internet search.