Comparative Analysis of Measures to Prevent Livestock Losses in Large-Scale Feedlots

Abstract

Livestock mutual aid is a key risk management tool for addressing production risks among livestock farmers. However, structural changes driven by continued farm-scale expansion have influenced risk management preferences. In this study, we analyzed a large-scale farm that chose to internalize risk through expensing rather than externalize it through insurance. The analysis revealed that damage prevention measures were implemented in stages by treatment staff and a contracted veterinarian. Consequently, the livestock mortality rate was reduced by 0.5% while maintaining low medical costs. Notably, when the mortality rate is sufficiently low, the profit margin is higher with expensing than with mutual aid.