2294 part 1 final report.pdf - Agra CEAS Consulting

Prevention and control of animal diseases worldwide
Part I: Economic analysis: prevention versus outbreak costs
and the new Hemispheric Plan for FMD (GIEFA) created in March 2004. GIEFA was created in the inter-
American context 104 to deal with the few pockets of resisting FMD on the continent. The objective of
GIEFA is to eradicate FMD from the Americas by 2010 through control and elimination of the disease
from endemic areas and by protecting FMD free areas. To this end, in 2005 the GIEFA developed an
Action Plan, which is to be complemented by national plans.
One of the basic strategies of the new plan is to strengthen the infrastructure of national veterinary
services. It appears that the previous programme (the PHEFA) contributed significantly to the
improvements of veterinary services in almost all countries of the region, including Argentina.
5.1.2. Cost of prevention and control systems
As discussed above, significant public and private funds have been committed in the South American
region in the context of the national plans. In total, some US$ 3.5 billion have been committed on the fight
against FMD by South American countries during 1990-2004, of which the public sector has contributed
roughly 30% and the private sector 70% (Figure 12). Over 75% of the mass vaccination undertaken by
Argentina and other countries in the region was funded by the private sector (A196).
In 2001, although in the midst of extensive financial difficulties, Argentina’s government assigned a
budget close to US$ 60,000,000 in its latest plan to control FMD (SENASA Resolution 5/2001).
While a regional approach is increasingly being advocated to address FMD, the extent of the financial
commitment on GIEFA is not clear as yet.
5.1.3. Costs of outbreaks
Argentina’s FMD outbreaks have caused significant ripple effects in terms of trade losses in important
export markets. As soon as the “FMD-free with vaccination” status was granted in May 2007, US and
Canadian markets were opened to Argentine fresh beef (further gains were envisaged in Asian countries in
anticipation of a sustained “FMD-free without vaccination” status). Following the FMD outbreak in 2000-
01, the closure of foreign markets reduced export volume by 53% and export value by 65% within the first
eight months of 2001 compared to the previous year. Beef exports fell from US$706 million in 2000 to
US$267 million in 2001 (A260).
Additional losses were reported from lower livestock prices. The dairy industry was also affected because
of reduced productivity per cow and restricted market access.
104 Created by PAHO-WHO (Pan American Health Organisation) and USDA in Houston Conference, with an initial
12 members (6 private and 6 public) and later expanded to include 4 new members (Paraguay, Bolivia, Ecuador and
Venezuela).
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