New Zealand Journal of Agricultural Research abstracts
Returns to investment in on-farm research: a case study of cover comb
technology
A. E. DOOLEY
W. J. PARKER
Institute of Veterinary, Animal and Biomedical
Sciences
Massey University
Private Bag 11222
Palmerston North, New Zealand
G. P. RAUNIYAR
Institute of Natural Resources
Massey University
Private Bag 11222
Palmerston North, New Zealand
S. N. McCUTCHEON
Vice Chancellor's Office
Massey University
Private Bag 11222
Palmerston North, New Zealand
S. T. MORRIS
Institute of Veterinary, Animal and Biomedical
Sciences
Massey University
Private Bag 11222
Palmerston North, New Zealand
Abstract The cover comb is a discrete, relatively simple
technology which generates financial advantages to farmers by reducing sheep
losses, particularly for late winter-spring shearings, and possibly by
conserving pasture when feed reserves are low. The development, research
evaluation, and extension of the cover comb have been reasonably well
documented, and this enabled a spreadsheet cost-benefit model to be constructed
to evaluate the return on investment in research, development, and extension
associated with the cover comb. The model developed for the analysis comprised
components for research and extension costs, the change in use of the cover
comb by sheep class and region through time, and the benefits that accrued from
alternative on-farm applications of the cover comb. Sensitivity analyses were
conducted for increases of 9.5% and 12.9% of all adult sheep in New Zealand
being shorn by cover comb between 1989 and 2000, reductions in sheep losses of
0.5% and 1%, and discount rates of 5% and 10%. The internal rates of return
ranged from 485% to 1330%, and the net present values from $12.30 million to
$49.22 million. The cover comb succeeded because it is a simple, easily
adopted, risk-reducing technology that is applicable to a large animal
population. This case study illustrates that investment in on-farm research can
be highly profitable.
Keywords research evaluation; cover comb; cost-benefit
analysis; model
New Zealand Journal of Agricultural Research, 1998, Vol. 41: 405-414
0028-8233/98/4103-0405 $7.00/0 (c) The Royal Society of New Zealand
1998
PDF file of entire paper: medium quality (789K); (scanned from paper original: notes about this process)
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