Risk Classification in Animal Disease Prevention: Who Benefits from Differentiated Policy?

Jarkko K. Niemi, Tapani Lyytikainen, Leena Sahlstrom, Terhi Virtanen and Heikki Lehtonen

No 49307, 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin from Agricultural and Applied Economics Association

Abstract: Risk classification of livestock farms can help stakeholders design and implement risk management measures according to the possessed risk. Our goal is to examine how differently pig farms may contribute to the societal costs of an animal disease outbreak, how valuable this information is to different stakeholders, and how it can be used to target risk management measures. We show that the costs of an outbreak starting from a certain farm can be quantified for the entire sector using bio-economic models. In further studies, this quantified risk can be differentiated so that farms and slaughterhouses internalise the full cost of risk in production decisions and inhibit animal densities, animal contact structures or other characteristics which pose a threat to the sector. Potential benefits due to risk classification could be received by society and producers, and in the long run also by consumers.

Keywords: Agricultural and Food Policy; Agricultural Finance; Livestock Production/Industries; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 28
Date: 2009-04-30
New Economics Papers: this item is included in nep-agr and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea09:49307

DOI: 10.22004/ag.econ.49307

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