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Risk Classification in Animal Disease Prevention: Who Benefits from Differentiated Policy?

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  • Niemi, Jarkko K.
  • Lyytikainen, Tapani
  • Sahlstrom, Leena
  • Virtanen, Terhi
  • Lehtonen, Heikki

Abstract

Risk classification of livestock farms can help stakeholders design and implement risk management measures according to the possessed risk. Our goal is to examine how differently pig farms may contribute to the societal costs of an animal disease outbreak, how valuable this information is to different stakeholders, and how it can be used to target risk management measures. We show that the costs of an outbreak starting from a certain farm can be quantified for the entire sector using bio-economic models. In further studies, this quantified risk can be differentiated so that farms and slaughterhouses internalise the full cost of risk in production decisions and inhibit animal densities, animal contact structures or other characteristics which pose a threat to the sector. Potential benefits due to risk classification could be received by society and producers, and in the long run also by consumers.

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File URL: http://purl.umn.edu/49307
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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49307.

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Date of creation: 30 Apr 2009
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Handle: RePEc:ags:aaea09:49307

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Related research

Keywords: Risk classification; animal disease; simulation; dynamic programming; partial-equilibrium; losses; Agricultural and Food Policy; Agricultural Finance; Livestock Production/Industries; Risk and Uncertainty;

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  1. Hennessy, David A., 2012. "Biosecurity and Spread of an Infectious Disease," Staff General Research Papers 35013, Iowa State University, Department of Economics.
  2. Gramig, Benjamin M. & Horan, Richard D. & Wolf, Christopher A., 2008. "Livestock Disease Indemnity Design When Moral Hazard is Followed by Adverse Selection," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6542, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Niemi, Jarkko K. & Lehtonen, Heikki, 2008. "The value of market uncertainty in a livestock epidemic," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6158, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. M.-J. J. Mangen & A. M. Burrell, 2003. "Who gains, who loses? Welfare effects of classical swine fever epidemics in the Netherlands," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(2), pages 125-154, June.
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