Economic evaluation of hormonal growth promotant’s (HGPs) - NSW Agriculture

Summary

The usage of Hormonal Growth Promotants (HGPs) is estimated to have contributed a total of $210m to the Australian beef industry in 2006/07. The gains from an estimated two million treatments made in the feedlot sector were calculated to provide an estimated increase in value of production of $80m. The balance of the HGP treatments (4.56m doses) used under grazing conditions were estimated to produce an additional value of $130m. In the case of feedlots, feed costs can be lower per unit of beef production and in some cases use of HGPs can produce sufficient growth that cattle reach the necessary weights by the age limit to get into the higher priced markets. The cost to industry associated with reduced meat eating quality via the Meat standards australia Australia grading scheme was estimated at $5.7m. In 2007/08 year HGP usage declined to an estimated 6.2m doses but this was almost entirely due to the lower feedlot capacity that was in operation at that time. It is expected that in the future HGP usage will again attain and most probably exceed the 2006/07 levels.