IDEAS home Printed from https://ideas.repec.org/p/ags/aesc17/258658.html
   My bibliography  Save this paper

Market Impact of FMD Control Strategies: A UK Case Study

Author

Listed:
  • Feng, Siyi
  • Patton, Myles
  • Davis, John

Abstract

Foot and Mouth Disease (FMD) poses a serious threat to the agricultural sector due to its highly contagious nature. Outbreaks of FMD can lead to substantial disruptions to livestock markets due to loss of production and access to international markets. In a previously FMD-free country, the use of vaccination to augment control of an FMD outbreak is increasingly being recognised as an alternative control strategy to direct slaughtering (Stamping-Out). Specific choice of eradication strategies depends on their costs and benefits. Economic impact assessments are often based on Benefit-Cost frameworks, which provide detailed information on the changes in profit for a farm or budget implications for a government (Rich et al., 2005). However, this framework cannot capture price changes caused by the outbreak. Market equilibrium and hence prices are expected to change due to the outbreak as both production and demand (especially export) would be disrupted. The implications of a particular control strategy on the different market aspects can be positive or negative. Therefore, modelling systems able to capture the market impacts are needed for strategy evaluation. This paper provides assessment of sectoral level impacts of the eradication choices of FMD outbreaks, which are typically not available from Benefit-Cost frameworks, in the context of the UK. The FAPRI-UK model, a partial equilibrium model of the agricultural sector, is utilised to investigate market outcomes of different control strategies (namely, Stamping-Out, and Vaccinate-to-Die) in the case of FMD outbreaks. The outputs from the simulations of the EXODIS epidemiological model (number of animals culled/vaccinated and duration of outbreak) are used as inputs within the economic model to capture the overall price impact of the animal destruction and export ban.

Suggested Citation

  • Feng, Siyi & Patton, Myles & Davis, John, 2017. "Market Impact of FMD Control Strategies: A UK Case Study," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258658, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc17:258658
    DOI: 10.22004/ag.econ.258658
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/258658/files/Myles_Patton_Market%20Impacts%20of%20FMD%20Control%20Strategies%20for%20AES_SF_MP.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.258658?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Amy D. Hagerman & Bruce A. McCarl & Tim E. Carpenter & Michael P. Ward & Joshua O'Brien, 2012. "Emergency Vaccination to Control Foot-and-mouth Disease: Implications of its Inclusion as a U.S. Policy Option," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(1), pages 119-146.
    2. Paarlberg, Philip L. & Hillberg, Ann & Lee, John G. & Mathews, Kenneth H., Jr., 2008. "Economic Impacts of Foreign Animal Disease," Economic Research Report 56453, United States Department of Agriculture, Economic Research Service.
    3. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Paarlberg, Philip L. & Seitzinger, Ann Hillberg & Lee, John G. & Haley, Mildred M., 2010. "Prioritization Of Sanitary Restrications Facing U.S. Exports Of Bovine, Porcine, And Ovine For Determination Of Surveillance Needs," Working papers 94031, Purdue University, Department of Agricultural Economics.
    4. Longworth, Natasha & Jongeneel, Roel A. & Saatkamp, Helmut W., 2021. "Management of Disease-triggered Shocks in Complex Value Chains: An Ex Ante Analysis of Market Effects of HPAI Control in the Dutch Egg Supply Chain," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 12(03), September.
    5. Shigeru Matsumoto & Viet‐Ngu Hoang, 2020. "Economic Loss Due to Reputation Damage: A New Model and Its Application to Fukushima Peaches," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 581-600, June.
    6. Dennis, Elliott J. & Schroeder, Ted C. & Renter, David G. & Pendell, Dustin L., 2018. "Value of Arrival Metaphylaxis in U.S. Cattle Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(2), May.
    7. Alves, Alexandre Florindo & Guilhoto, Joaquim José Martins, 2014. "The impact of cattle foot and mouth disease in the Brazilian economy," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182824, European Association of Agricultural Economists.
    8. Leister, Amanda M. & Lee, John G. & Paarlberg, Philip L., 2013. "Dynamic Effects of Drought on the U.S. Livestock Sector," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149946, Agricultural and Applied Economics Association.
    9. Johnson, Kamina K. & Hagerman, Amy D. & Thompson, Jada M. & Kopral, Christine A., 2015. "Factors Influencing Export Value Recovery after Highly Pathogenic Poultry Disease Outbreaks," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-16, July.
    10. Britton, Logan L. & Hagerman, Amy D. & Holmstrom, Lindsey & Johnson, Kamina K., 2020. "Alternative Management Strategies in Response to Foot-and-Mouth Disease in Large Feedlots," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304299, Agricultural and Applied Economics Association.
    11. Gohin, Alexandre & Rault, Arnaud, 2012. "Assessing the economic costs of an outbreak of Foot and Mouth Disease on Brittany: A dynamic computable general equilibrium approach," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122438, European Association of Agricultural Economists.
    12. Johnson, Kamina K. & Antognoli, Maria C. & Ahola, Sara C. & Gustafson, Lori L. & Branan, Matthew A. & Remmenga, Marta D. & Jones, Rebecca D. & Orloski, Kathleen A. & Hsi, David J., 2016. "Using a Portfolio Approach to Evaluate Animal Health Surveillance Portfolios in the United States," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235985, Agricultural and Applied Economics Association.
    13. Gohin, Alexandre & Rault, Arnaud, 2013. "Assessing the economic costs of a foot and mouth disease outbreak on Brittany: A dynamic computable general equilibrium analysis," Food Policy, Elsevier, vol. 39(C), pages 97-107.
    14. Arnaud Rault & Stéphane Krebs, 2011. "Catastrophic risk and risk management, what do we know about livestock epidemics? State of the art and prospects," Working Papers SMART 11-05, INRAE UMR SMART.
    15. Paarlberg, Philip, 2014. "Updated Estimated Economic Welfare Impacts Of Porcine Epidemic Diarrhea Virus (Pedv)," Working papers 174517, Purdue University, Department of Agricultural Economics.
    16. Tozer, Peter & Marsh, Thomas, 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 1-20.
    17. Costa, Rafael & Bessler, David & Rosson, C. Parr, 2015. "The Impacts of Foot and Mouth Disease Outbreaks on the Brazilian Meat Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-19, November.
    18. Boisvert, Richard N. & Kay, David & Turvey, Calum G., 2012. "Macroeconomic costs to large scale disruptions of food production: The case of foot- and-mouth disease in the United States," Economic Modelling, Elsevier, vol. 29(5), pages 1921-1930.
    19. Hagerman, Amy D. & Delgado, Amy H. & Schoenbaum, Melissa, 2015. "Alternative Control Strategies with Uncertain Trade Barriers for Foot-and-Mouth Disease in Feedlot Operations," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205393, Agricultural and Applied Economics Association.
    20. Mellado, Aida Gonzalez, 2008. "Analysing effects of trade liberalization on household expenditure with an extended version of the GTAP model: The case of Mexico," Conference papers 331740, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aesc17:258658. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesukea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.