Research Reports
An Economic Analysis of Livestock Diseases
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AuthorSong, Jooho
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Publication Date2006.11.01
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Original
Although there are growing economic concerns on livestock diseases, researches on the issue are limited. In this study, we combined data of livestock diseases with an economic method to build an economic analysis model for measuring the economic impact of livestock diseases.
To do so, we developed a spreadsheet model and estimated direct economic losses of individual farms from various livestock diseases. Furthermore, this study analyzed social welfare changes as a result of shifts in the demand and supply of meat due to serious livestock diseases.
Using the spreadsheet model, the study found that cattle growers' losses can vary from 500 million won to 67 billion won. Also, the losses of pig and poultry farms are estimated at up to 53 billion and 800 million won each, respectively. The livestock life cycle model, which was developed in the study, estimated disease specific economic losses of farms. For example, the economic losses a livestock farm can suffer from PMWS (Post-Weaning Multisystemic Wasting Syndrome) and calf diarrhea are estimated at 18 million won and 28 million won, respectively.
The social welfare analysis shows that the outbreaks of mad cow disease (Bovine Spongiform Encephalopathy or BSE) in the U.S. and domestic avian influenza (AI) and bovine brucellosis reduce social welfare by up to 385 billion won, 333 billion won, and 342 billion won, respectively.
The model developed in the study and the analysis results can be utilized for individual farmers, policy makers, and other researchers on the issues of estimating the economic loss from livestock diseases and of formulating disease prevention policies.
Researchers: Song, Joo-Ho, Byung-Joon Woo, Duk Huh, Sun-il Park
E-mail address: jhsong@krei.re.kr
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