FINANCIAL ANALYSIS OF DIPPING STRATEGIES FOR INDIGENOUS CATTLE UNDER RANCH CONDITIONS IN UGANDA

A financial analysis was performed to assess the performance of three acaricide-treatment groups of indigenous breeds (Zebu and Nganda) of c attle on a ranch in Luwero District, Uganda. The treatments were based on different frequencies: twice-a-week dipping, once-a-month dipping and no tick control. The objective was to evaluate the economic justif ication for intensive acaricide application for tick and tick-borne di sease control in Uganda. Data were collected by monitoring cattle perf ormance over a period of 34 months. Biological data collected included the number of cows at the beginning and end of the study, net startin g liveweight, number of calves born, number of animals dying due to ti ck-borne diseases and other causes, number of animals sold or slaughte red and milk yield. Records of variable costs (acaricides, drugs, labo ur, etc.) and output prices were assembled and calculated by treatment group. Gross margin and marginal analysis were used in the financial analysis. The exchange rate in 1990-1993 was one US$ to 1200 Uganda sh illings. The gross benefits obtained from animal sales, herd value and milk yield were Uganda shillings 1175, 1389 and 1311 per kg of net st arting liveweight for animals dipped twice-a-week, once-a-month and no t dipped, respectively. The variable costs were Ug. shs, 424, 390 and 360 per kg of net starting liveweight, respectively. Consequently, the gross margins were Ug. shs. 751, 999 and 951 per kg of net starting l iveweight. Furthermore, the marginal rate of return (MRR) in changing from no tick control to once-a-month dipping was 160%, while changing from no tick control to twice-a-week dipping was negative (-313%). The above results showed that the value of increased gains in production obtained from twice-a-week dipping strategy does not offset the costs of inputs for intensive dipping. Once-a-month dipping (strategic) ther efore appears to be the most-profitable tick-control strategy for the farmer. The need to conduct further studies in different livestock- pr oduction systems and to rationalise future rift control policies is di scussed. (C) 1998 Elsevier Science B.V.