2294 part 1 final report.pdf - Agra CEAS Consulting
2294 part 1 final report.pdf - Agra CEAS Consulting
2294 part 1 final report.pdf - Agra CEAS Consulting
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Prevention and control of animal diseases worldwide<br />
Part I: Economic analysis: prevention versus outbreak costs<br />
6.2.1. Key parameters<br />
For the analysis of outbreak costs we differentiate between direct and indirect, further broken down by<br />
cost sub-category, according to the typology presented in Table 2.<br />
Direct costs and losses are calculated in detail per country – member of the OIE 137 and then these are<br />
added to obtain the estimate of global direct costs and losses. These costs are also summarised according<br />
to country income levels, which is important in the context of the analysis carried out in Deliverable 2 138 .<br />
Indirect costs are calculated at a global level (including all developing/transition countries which are<br />
members of the OIE). In this case, the available data and the applied methodology do not allow a more<br />
detailed breakdown per country.<br />
A range of parameters is used to calculate each type of cost, as follows (Table 22):<br />
Table 22 Parameters used in global economic analysis of outbreak costs<br />
Direct production costs and losses:<br />
Direct losses<br />
e) Number of poultry lost (died from the disease or culled)<br />
f) Average market value per head of poultry (pre-outbreak)<br />
g) Culling and disposal costs per head of poultry<br />
h) Control costs per head of poultry<br />
Consequential on-farm losses i) Farm income from activity per head of poultry<br />
j) Duration of farm business disruption<br />
Indirect costs:<br />
Ripple (a) • Fall in domestic poultry prices<br />
• Fall in domestic sales<br />
• Fall in world poultry prices<br />
• Fall in world poultry trade (exports)<br />
• Duration of the above impacts<br />
Spill-over (b) • Loss in world tourism income value<br />
• Duration of the above impact<br />
Wider society (c) • Loss in global GDP in the event of a human pandemic.<br />
(a) Total net impact on domestic and international markets: depends on impact of outbreak on consumer demand and<br />
price levels and proportion of producers/production affected; unaffected producers/countries may actually gain from<br />
higher prices. Excludes other potential ripple effects, notably the impact on agricultural input sectors, due to lack of<br />
evidence/data.<br />
(b) Costs to the economic sectors of tourism/travel only covered here. Other potentially affected economic sectors<br />
(e.g. services) excluded, due to lack of evidence/data.<br />
(c) Economic impact based on the public health effects of a pandemic influenza. Excludes other potential impacts,<br />
such as environmental effects, due to lack of evidence/data.<br />
137 Within the scope of the ToR for this study, as outlined in section 3.2.<br />
138<br />
As direct costs and losses are calculated per country, it is possible to summarise costs according to any of the<br />
clusters presented in section 3.2.<br />
Civic <strong>Consulting</strong> • <strong>Agra</strong> <strong>CEAS</strong> <strong>Consulting</strong> 140