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Financial-economic considerations of decision making on control and prevention of BVD in the EU

Financial-economic considerations of decision making on control and prevention of BVD in the EU . Helmut W. Saatkamp and George J. Gunn. Business Economics Chair, Wageningen University, The Netherlands; Epidemiology Unit, Scottish Agricultural College, United Kingdom. Contents of talk.

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Financial-economic considerations of decision making on control and prevention of BVD in the EU

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  1. Financial-economic considerations of decision making on control and prevention of BVD in the EU Helmut W. Saatkamp and George J. Gunn. Business Economics Chair, Wageningen University, The Netherlands; Epidemiology Unit, Scottish Agricultural College, United Kingdom

  2. Contents of talk Problem definition Aim of the presentation Qualitative comparison of two BVDV situations Discussion and conclusions

  3. Problem definition BVD: can cause severe clinical disease (variation) large variety in occurrence between European countries differences in control approaches: (semi-)mandatory nation wide or regional voluntary farm-based

  4. Problem definition Important question currently discussed: What shall we do with BVDV control and prevention??

  5. Options: continuation current situation: every country/farmer decides in its/his own interest ‘upwards harmonization’: (stimulation) of aiming at freedom of BVDV within large(r) areas, e.g. the EU voluntary approaches: information, extension, persuasion, … mandatory approaches: OIE List-B status Problem definition

  6. Problem definition Official / List B-status of BVDV to an area/country: change the decision problem: farmer >> sector (collective farmers) / country impact of losing free-status after re-introduction? financial-economic impact of re-introduction can increase: production-efficiency effects for affected producers trade effects of non-affected producers others

  7. In short: changing the current status of BVD will affect the financial-economic impact of the disease: production disease effects also trade effects (depending on measures) or: individual farmers’ problem / production disease collective farmers’ problem / (risk of) trade disease Problem definition

  8. Aim and method Aim: to provide food for thought when considering changing the current BVDV-situation into OIE List-B status Method: to present a way of reasoning by qualitative comparison of impact BVDV in (1) current situation and (2) OIE List-B situation

  9. Qualitative comparison BVDV situations considered

  10. Qualitative comparison Question: what will/can be the impact of a new case of BVD in the respective normal situations at various economic levels? affected individual producers non-affected individual producers within the area national cattle sector / collective producers agri-industry consumers national economy

  11. Qualitative comparison Financial-economic impact of occurrence of BVDV

  12. Qualitative comparison

  13. Discussion and conclusions Which factors should be assessed when considering changing the status of BVDV at EU level? Benefits of eradication: increase in production efficiency decrease in production costs for primary producers impact on total producers’ supply? quota system: most likely not liberal market: likely >> impact on consumer prices / surplus >> financial economic benefits for primary producers?

  14. Discussion and conclusions Trade-economic consequences of BVDV as OIE List-B disease in case of re-occurrence: which products are affected? which areas will be affected? reactions of trade partners net-importing versus net-exporting countries

  15. Discussion and conclusions Re-occurrence of BVDV in List-B situation: epidemiological risks country/region dependent situation in ‘contact’ countries control strategy: direct costs indirect losses (trade consequences of losing status)

  16. Discussion and conclusions Should eradication of BVDV be given a high priority? Farmers’ perspective / preferences: farm-economic: resource competition animal health and welfare Society perspective: socio-ethical criteria (citizen) economic criteria (consumer) government involvement?

  17. Conclusion Freedom of BVDV seems to be possible. Current situation: (Groups of) farmers are primarily affected by costs and benefits Raising the problem to (supra-)national level (e.g. List-B): the financial-economic implications: could be considerable varying per country and stakeholder should be considered thoroughly before taking such a decision

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