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


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


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.

Suggested Citation

  • Niemi, Jarkko K. & Lyytikainen, Tapani & Sahlstrom, Leena & Virtanen, Terhi & Lehtonen, Heikki, 2009. "Risk Classification in Animal Disease Prevention: Who Benefits from Differentiated Policy?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49307, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea09:49307

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    References listed on IDEAS

    1. 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.
    2. Benjamin M. Gramig & Richard D. Horan & Christopher A. Wolf, 2008. "Livestock Disease Indemnity Design When Moral Hazard Is Followed by Adverse Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 627-641.
    3. Hennessy, David A., 2012. "Biosecurity and Spread of an Infectious Disease," Staff General Research Papers Archive 35013, Iowa State University, Department of Economics.
    4. 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).
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