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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 />

Country<br />

Impact<br />

sanitary containment measures, which included the disposal of 5,424 cattle, 1,511 sheep and 333<br />

pigs, amounted to over US$2 million. The costs involved in the secondary round of containment<br />

measures, which included the costs of vaccinating cattle in the immediate vicinity of the affected<br />

areas and the costs of the nation-wide vaccination campaign covering the entire cattle herd that will<br />

follow, were estimated at US$18.2 million. (A259)<br />

Control costs<br />

Africa<br />

Vietnam (a)<br />

Nigeria (a)<br />

Given that in Africa, some 5% (around 66,000,000 poultry) of the total poultry population could be<br />

culled within three years if HPAI continues to spread at current rates, and estimated to cost about<br />

US$ 1 per bird (Alive estimates, A258), the total control costs of a pan-African outbreak could<br />

reach at least US$ 66 million (e.g. above figures exclude South Africa).<br />

In the case of the Vietnam HPAI outbreaks, it was estimated to cost about US$ 0.25 per bird to cull<br />

and dispose approximately 200 chickens per farm. Direct losses (value of birds plus culling costs)<br />

from the first wave of the outbreak in 2004 (when the culling operations were more extensive) were<br />

estimated to be over $200 million. (A7, A9, A91)<br />

In the case of the Nigeria HPAI outbreaks, culling teams were organised on an ad hoc basis and the<br />

costs were estimated to reach about US$ 1.00 per bird, if the team culled 1,000 birds within a day.<br />

(A7, A258).<br />

Consequential on-farm losses<br />

• Business interruption<br />

Vietnam (a)<br />

Nigeria (a)<br />

Asia<br />

Vétérinaires Sans Frontières (VSF) conducted a case study of a village in the highlands of North<br />

Vietnam which estimated that a smallholder lost between US$ 69 and US$ 108 from the HPAI<br />

outbreaks, including the value of lost birds, loss of an average 2.3 months with no activities, and<br />

loss of no income and consumption during the period of no activities. In Vietnam about 18% of the<br />

households earn less than US$1 per capita a day and 64% of the households less than US$2. (A76)<br />

The cost of restoring the affected poultry units back to their original level (i.e. before the HPAI<br />

outbreak) is estimated at about N889 million (or $6.95 million). In addition, there was a 45% drop<br />

in the flock size of the non-affected farms, mainly because of lack of funds to feed the birds (due to<br />

the drop in poultry sales) which forced many farmers to reduce flocks, and it is unclear whether<br />

these farms will recover. (A293)<br />

The size of the poultry sector in the national economies of the Asian region before the HPAI<br />

epidemic ranged from around 0.6% of GDP at the low end in countries like Vietnam and Thailand,<br />

to a high of a little over 2% in the Philippines, with most countries averaging a little over 1% of<br />

GDP. In an economy like Vietnam, where poultry output is down by around 15%, this <strong>part</strong> of<br />

economic loss is worth about 0.1% of GDP or about $45 million. If similar declines in poultry<br />

numbers were to occur in an economy like Indonesia where the poultry sector plays a somewhat<br />

larger <strong>part</strong> in the economy, these direct costs could amount to 0.2% of GDP. (A140, A140a)<br />

• On-farm employment<br />

Lao PDR<br />

Lao PDR and Cambodia poultry sectors resulted in a small loss of jobs (as low as 52 jobs in Lao<br />

Civic <strong>Consulting</strong> • <strong>Agra</strong> <strong>CEAS</strong> <strong>Consulting</strong> 73

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