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Domestic and trade impacts of foot-and-mouth disease on the Australian beef industry

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  • Peter Tozer
  • Thomas L. Marsh

Abstract

Australia is the sixth largest producer of beef and the second largest exporter of beef. Average beef exports from Australia are approximately 65 per cent of the total amount of beef produced, about 1.3 million tonnes. Australia is particularly vulnerable to diseases that are not endemic to the country and could close or disrupt its export markets for beef. In this study, we construct a bioeconomic optimisation model of the Australian beef industry that captures production and consumption decisions, domestically and internationally, and the impacts on the beef industry of a potentially catastrophic disease, foot-and-mouth disease (FMD). This study analyses localised to large-scale outbreaks and suggests that changes in economic surplus because of FMD range from a positive net gain of $57 million to a net loss of $1.7 billion, with impacts on producers and consumers varying depending on the location of the outbreak, control levels and the nature of any trade ban.
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  • Peter Tozer & Thomas L. Marsh, 2012. "Domestic and trade impacts of foot-and-mouth disease on the Australian beef industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(3), pages 385-404, July.
    • Handle: RePEc:bla:ajarec:v:56:y:2012:i:3:p:385-404
    DOI: j.1467-8489.2012.00586.x
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    2. Lei, Lei & Zhou, Li, 2017. "Avian influenza, nontariff measures, and the poultry exports in the global value chain," IDE Discussion Papers 640, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Troy G. Schmitz, 2018. "Impact of the Chinese embargo against MIR162 corn on Canadian corn producers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 571-586, December.
    4. Edgardo Ayala & Joana Chapa, 2017. "AH1N1 impact on the Mexican pork meat market," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 3-25.
    5. Webb, Mike & Gibson, John & Strutt, Anna, 2018. "The impact of diseases on international beef trade: Market switching and persistent effects," Food Policy, Elsevier, vol. 75(C), pages 93-108.
    6. Annika Djurle & Beth Young & Anna Berlin & Ivar Vågsholm & Anne-Lie Blomström & Jim Nygren & Anders Kvarnheden, 2022. "Addressing biohazards to food security in primary production," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(6), pages 1475-1497, December.
    7. Wittwer, Glyn, 2023. "The economic impacts of a hypothetical foot and mouth disease outbreak in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 68(01), September.
    8. Niemi, Jarkko K. & Lehtonen, Heikki, 2014. "Livestock product trade and highly contagious animal diseases," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169759, Agricultural Economics Society.
    9. Zhou, Li & Li, Lingzhi & Lei, Lei, 2019. "Avian influenza, non-tariff measures and the poultry exports of China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(1), January.
    10. Dustin L Pendell & Thomas L Marsh & Keith H Coble & Jayson L Lusk & Sara C Szmania, 2015. "Economic Assessment of FMDv Releases from the National Bio and Agro Defense Facility," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-22, June.
    11. Mike Webb & John Gibson & Anna Strutt, 2017. "The Importance of Biosecurity: How Diseases Can Affect International Beef Trade," Working Papers in Economics 17/13, University of Waikato.
    12. Tozer, Peter R. & Marsh, Thomas L., 2018. "Dynamic regional model of the US apple industry: Consequences of supply or demand shocks due to pest or disease outbreaks and control," Agricultural Systems, Elsevier, vol. 164(C), pages 252-263.
    13. Alejandro Acosta & Carlos Barrantes & Rico Ihle, 2020. "Animal disease outbreaks and food market price dynamics: Evidence from regime‐dependent modelling and connected scatterplots," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 960-976, July.
    14. Olaniyi, Oladokun Nafiu & Szulczyk, Kenneth R., 2020. "Estimating the economic damage and treatment cost of basal stem rot striking the Malaysian oil palms," Forest Policy and Economics, Elsevier, vol. 116(C).
    15. Peter R. Tozer & Thomas. L. Marsh & Evgeniy V. Perevodchikov, 2015. "Economic Welfare Impacts of Foot-and-Mouth Disease in the Canadian Beef Cattle Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(2), pages 163-184, June.
    16. Kenneth R. Szulczyk, 2023. "Estimating the economic costs and mitigation of rice blast infecting the Malaysian paddy fields," SN Business & Economics, Springer, vol. 3(1), pages 1-21, January.

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