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Economics analysis of mitigation strategies for FMD introduction in highly concentrated animal feeding regions

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  • Elbakidze, Levan
  • Highfield, Linda
  • Ward, Michael P.
  • McCarl, Bruce A.
  • Norby, Bo

Abstract

Outbreaks of infectious animal diseases can lead to substantial losses as evidenced by 2003 US BSE (Bovine Spongiform Encephalopathy) event with consequent loss of export markets, and the 2001 UK FMD (Foot and Mouth Disease) outbreak that has cost estimates in the billions. In this paper we present a linked epidemiologic-economic modeling framework which is used to investigate several FMD mitigation strategies under the context of an FMD outbreak in a concentrated cattle feeding region in the US. In this study we extend the literature by investigating the economic effectiveness of some previously unaddressed strategies including early detection, enhanced vaccine availability, and enhanced surveillance under various combinations of slaughter, surveillance, and vaccination. We also consider different disease introduction points at a large feedlot, a backgrounder feedlot, a large grazing herd, and a backyard herd all in the Texas High Plains. In terms of disease mitigation strategies we evaluate the economic effectiveness of: 1. Speeding up initial detection by one week from day 14 to day 7 after initial infection; 2. Speeding up vaccine availability from one week post disease detection to the day of disease detection; 3.Doubling post event surveillance intensity. To examine the economic implications of these strategies we use a two component stochastic framework. The first component is the epidemiologic model that simulates the spread of FMD as affected by control policies and introduction scenarios. The second component is an economics module, which calculates an estimate of cattle industry losses plus the costs of implementing disease control. The results show that early detection of the disease is the most effective mechanism for minimizing the costs of outbreak. Under some circumstances enhanced surveillance also proved to be an effective strategy.

Suggested Citation

  • Elbakidze, Levan & Highfield, Linda & Ward, Michael P. & McCarl, Bruce A. & Norby, Bo, 2008. "Economics analysis of mitigation strategies for FMD introduction in highly concentrated animal feeding regions," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6162, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea08:6162
    DOI: 10.22004/ag.econ.6162
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    2. Elbakidze, Levan & McCarl, Bruce A., 2006. "Animal Disease Pre-Event Preparedness versus Post-Event Response: When Is It Economic to Protect?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(2), pages 327-336, August.
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    Cited by:

    1. Alexandre Cordier & Jean Gohin & Stephane Krebs & Arnaud Rault, 2013. "Dynamic Impacts of a Catastrophic Production Event: The Foot‐and‐Mouth Disease Case," Risk Analysis, John Wiley & Sons, vol. 33(3), pages 480-492, March.
    2. Dermot J. Hayes & Lee L. Schulz & Chad E. Hart & Keri L. Jacobs, 2021. "A descriptive analysis of the COVID‐19 impacts on U.S. pork, turkey, and egg markets," Agribusiness, John Wiley & Sons, Ltd., vol. 37(1), pages 122-141, January.
    3. 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.
    4. Hagerman, Amy D. & Johnson, Kamina K. & Holmstrom, Lindsey & Rigney, Columb & Boyer, Tim & Schoenbaum, Melissa & Patyk, Kelly, 2018. "Saving Our Bacon without Hamstringing the Industry: Sensitivity of Economic Losses to Post-outbreak Management of Foot-and-Mouth Disease Vaccinated Animals in a Simulated US Outbreak," 2018 Annual Meeting, August 5-7, Washington, D.C. 273866, Agricultural and Applied Economics Association.
    5. 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.
    6. Andrew M. McKenzie & Michael R. Thomsen & Michael K. Adjemian, 2022. "Characterizing implied volatility functions from agricultural options markets," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(5), pages 1605-1624, October.
    7. Seo, S. Niggol, 2010. "Is an integrated farm more resilient against climate change? A micro-econometric analysis of portfolio diversification in African agriculture," Food Policy, Elsevier, vol. 35(1), pages 32-40, February.
    8. Hayes Dermot & Jacobs Keri & Schulz Lee & Crespi John, 2023. "Resilience of U.S. Cattle and Beef Sectors: Lessons from COVID-19," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 21(1), pages 53-67, May.

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