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 />
Country<br />
US<br />
Impact<br />
In the US, where 62% of oilseed and cereal production is destined for animal feed, an epizootic<br />
that would reduce livestock production by 10% would immediately result in the loss of 418,000<br />
jobs, a surplus of 18.4 million tonnes of cereal and oilseed crops, a 10% drop in global market<br />
prices, and crises in other producer countries. (A292)<br />
Other inputs: demand for chicks<br />
Indonesia<br />
Brazil<br />
The drastic fall in demand and prices which was caused by the HPAI outbreaks in early 2004 had<br />
consequences for the producers of hatching eggs and day-old chicken. The demand for day-old<br />
chicks in the infected areas decreased by 58% for broilers and 40% for layers. Overall, the weekly<br />
supply of day-old chicks fell by 17.5% for broilers and 25% for layers. According to data from the<br />
Indonesian Poultry information Centre, within 1-2 months from the outbreak, sales of broilers fell<br />
from around 21 million per week to 14 million, while prices fell from Rupia 2200 per day-old<br />
chick to as low as Rupia 200. (A16, A76, A91)<br />
In Brazil, where 30% of poultry production is for export, the price of a day-old chick – an early<br />
indicator of a possible change in production – is <strong>report</strong>ed to have fallen by 50% following global<br />
<strong>report</strong>s on HPAI. Even through the country is not infected, market uncertainties and price drops<br />
have prompted larger producers to cut their production by 15% this year (2006), thus affecting the<br />
country’s export outlook (A292).<br />
Wholesale markets/traders<br />
Vietnam<br />
(a)<br />
Nigeria (a)<br />
The reorganisation of HCMC’s chicken and egg production following the HPAI outbreaks (and<br />
the need to ensure product safety) led to a decline in the number of wholesale egg markets from<br />
134 to 75, while the number of poultry markets fell from 1,550 to 7 (excluding supermarkets). (A9)<br />
Associated businesses such as those trading in poultry products are estimated to have lost close to<br />
N 61.7 million ($0.5 million): this is estimated as the 10% of the farm gate price of the number of<br />
birds that were either culled or dead as a result of the HPAI. One live chicken sellers’ association<br />
(Abubakar Rimi Market in Kano, reputed to be the largest local chicken market in Nigeria),<br />
claimed that their sales dropped from 10,000 birds to only 1,000 birds per day in February/March<br />
2006. The price also crashed from N350 to N150 per bird during the crisis. Similar experiences<br />
were <strong>report</strong>ed in other markets. (A293)<br />
Catering sector<br />
Nigeria (a) A sharp drop by 81% was <strong>report</strong>ed in sales in restaurants, fast food business outlets, roadside<br />
roasted chicken sellers and egg sellers within 2 weeks following the announcement of HPAI<br />
outbreaks (February 2006), which by May 2006 had only recovered to 67.7% of the pre-outbreak<br />
sales. (A293)<br />
(a)<br />
More extensive information on the costs in these countries can be found in the case studies<br />
Source: compiled by <strong>Agra</strong> <strong>CEAS</strong> <strong>Consulting</strong><br />
Civic <strong>Consulting</strong> • <strong>Agra</strong> <strong>CEAS</strong> <strong>Consulting</strong> 84