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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 />

Global direct production costs and losses, scenario C (annual)<br />

18,000,000<br />

16,000,000<br />

14,000,000<br />

12,000,000<br />

'000 US$<br />

10,000,000<br />

8,000,000<br />

6,000,000<br />

4,000,000<br />

2,000,000<br />

0<br />

Impact: scenario 1 (most<br />

likely)<br />

Impact: scenario 2 (low<br />

impact)<br />

Impact: scenario 3 (high<br />

impact)<br />

Poultry value losses<br />

Culling/<br />

Disposal costs<br />

Control costs<br />

Note: Impact presented on an annual basis. For full results see Annex 5<br />

Source: “OIE Del1 global costs analysis.xls”, <strong>Agra</strong> <strong>CEAS</strong> <strong>Consulting</strong>.<br />

6.3.2. Indirect impact<br />

The various indirect costs in the event of an HPAI outbreak have been estimated as a range between 3<br />

possible outcomes from the 3 main scenarios (‘most likely’, ‘low impact’ and ‘high impact’). Unlike<br />

direct costs, it has not been possible to estimate costs per country, therefore it has not been possible to<br />

examine scenarios A, B and C on the geographical country coverage. As discussed above, this is due to<br />

the complexity of interactions, whereby a loss in one sector may be a gain in another. Thus, the effects<br />

given here are an estimated net impact which accommodates for such interactions, based on assumptions<br />

taken from the baseline i.e. the experience we have now gained from the global impact on world markets<br />

following the AI outbreaks of the last few years.<br />

Global estimates of the indirect impact under the ‘most likely scenario’ are presented in Table 25, on an<br />

annual basis and in total terms (i.e. depending on the duration of the impact of the epidemic). Under the<br />

‘most likely’ scenario, ripple costs are estimated at US$ 5.3 billion in terms of domestic market losses in<br />

the poultry sector and a further US$ 3.8 billion in terms of export market losses on an annual basis.<br />

Assuming a 2 year duration of impact, as is currently the case under the ‘most likely’ scenario based on<br />

real market baseline trends, the total ripple impact in terms of domestic and export market losses in the<br />

poultry sector would be double the above amounts (i.e. US$ 10.6 billion and US$ 7.5 billion respectively).<br />

Civic <strong>Consulting</strong> • <strong>Agra</strong> <strong>CEAS</strong> <strong>Consulting</strong> 150

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