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The Economics of Controlling Infectious Diseases on Dairy Farms

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  • Junwook Chi
  • Alfons Weersink
  • John A. VanLeeuwen
  • Gregory P. Keefe

Abstract

Cost effective disease control on the dairy farm can enhance productivity and subsequently profitability. Previous economic studies on animal disease have focused on production losses and evaluation of disease eradication programs and provided little guidance as to the optimal prevention action. This paper presents a theoretical model on the economics of livestock disease and develops an empirical model to determine the optimal set of control strategies for four production limiting cattle diseases: bovine viral diarrhea (BVD), enzootic bovine leukosis (EBL), Johne's Disease (JD) and neosporosis. Control functions indicating the prevalence of infection with each of the four diseases for each of the ten strategies are estimated. The optimal strategies that minimize total disease cost (direct production losses and control expenditures) are provided for each disease on the basis of farm survey results from the Maritime provinces. The results emphasize the importance of introduction checks before new animals enter the herd and adequate vaccination protection as cost-effective control strategies.
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Suggested Citation

  • Junwook Chi & Alfons Weersink & John A. VanLeeuwen & Gregory P. Keefe, 2002. "The Economics of Controlling Infectious Diseases on Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 50(3), pages 237-256, November.
    • Handle: RePEc:bla:canjag:v:50:y:2002:i:3:p:237-256
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    File URL: http://hdl.handle.net/10.1111/j.1744-7976.2002.tb00335.x
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    1. Erik Lichtenberg & David Zilberman, 1986. "The Econometrics of Damage Control: Why Specification Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 261-273.
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    1. Benjamin M. Gramig & Christopher A. Wolf & Frank Lupi, 2010. "Understanding Adoption of Livestock Health Management Practices: The Case of Bovine Leukosis Virus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(3), pages 343-360, September.
    2. Stott, Alistair W., 2006. "Optimisation methods for assisting policy decisions on endemic diseases," Working Papers 46000, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    3. Wolf, Christopher A., 2005. "Producer Livestock Disease Management Incentives and Decisions," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 8(1), pages 1-16.
    4. Wittenberger, Kelsey James, 2007. "A simulation model evaluating costs of Bovine Viral Diarrhea Virus (BVDV) for a typical U.S. cow-calf producer and benefits of multiple test and cull strategies," ISU General Staff Papers 2007010108000015671, Iowa State University, Department of Economics.
    5. Kobayashi, Mimako & Melkonyan, Tigran A., 2011. "Strategic Incentives in Biosecurity Actions: Theoretical and Empirical Analyses," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-21, July.
    6. Helen H. Jensen, 2005. "Infectious Disease, Productivity, and Scale in Open and Closed Animal Production Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 900-917.
    7. David A. Hennessy, 2007. "Behavioral Incentives, Equilibrium Endemic Disease, and Health Management Policy for Farmed Animals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 698-711.
    8. Osseni, Abdel Fawaz & Gohin, Alexandre & Rault, Arnaud, 2022. "Optimal Biosecurity Policy with Heterogeneous Farmers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(2), May.
    9. Rat-Aspert, Olivier & Krebs, Stephane, 2012. "Individual and collective management of endemic animal diseases: an economic approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126812, International Association of Agricultural Economists.
    10. Tom Kompas & Tuong Nhu Che & Pham Van Ha, 2006. "An Optimal Surveillance Measure Against Foot-and-Mouth Disease in the United States," International and Development Economics Working Papers idec06-11, International and Development Economics.
    11. Robert G. Chambers & Giannis Karagiannis & Vangelis Tzouvelekas, 2009. "Yet Another Look at Pest Damage and Pesticide Productivity," Working Papers 0911, University of Crete, Department of Economics.
    12. Stott, Alistair W. & Brulisauer, Franz & Fraser, Fiona & Gunn, George J., 2009. "Measuring the benefits of farm animal health," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51077, Agricultural Economics Society.
    13. Longworth, Natasha & Jongeneel, Roelof A. & Saatkamp, H.W. & Huirne, Ruud B.M., 2008. "Is prevention better than cure? An empirical investigation for the case of Avian Influenza," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44200, European Association of Agricultural Economists.
    14. Siekkinen, K.-M. & Heikkila, Jaakko & Tammiranta, N. & Rosengren, H., 2008. "The Costs of Biosecurity at the Farm Level: the Case of Finnish Broiler," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44240, European Association of Agricultural Economists.

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