Economic analysis of livestock trials

This paper presents a general method for conducting economic analysis which can be applied to livestock trials set up to formulate recommendations for a target group of producers. After outlining the characteristics distinguishing livestock from agronomic trials, the study describes two key concepts underlying its methodological approach (partial budget and marginal analysis), identifies the data required for the analysis, and discusses problems that may arise in calculating costs and rate of return. Succeeding sections discuss: (1) the stages of the analysis (including construction of a partial budget); (2) the identification of superior and inferior treatments; and (3) the analysis of profitability. Examples of analyses for intensive fattening trials, herd-level trials, and calculating the losses caused by trypanosomiasis are provided. Statistical significance and data processing options are briefly considered in two concluding sections.