Market impacts of E. Coli vaccination in U.S. Feedlot cattle
Glynn Tonsor and
Ted Schroeder
Agricultural and Food Economics, 2015, vol. 3, issue 1, 1-15
Abstract:
Immunization through vaccination has been a commercially available pre-harvest intervention to reduce E. coli shedding in cattle for about five years. Despite demonstrated substantial improvement in human health that vaccine adoption offers, it has not been widely adopted. This highlights the need for understanding the economic situation underlying limited adoption. Using an equilibrium displacement model, this study identifies the economic impact to U.S. feedlots implementing this vaccination across a series of alternative scenarios. Producers face $1 billion to $1.8 billion in welfare losses over 10 years if they adopt this technology without any associated increases in demand for fed cattle. Retail beef demand increases of 1.7% to 3.0% or export demand increases of 18.1% to 32.6% would each individually make producers economically neutral to adoption. Retail or packer cost decreases of 1.2% to 3.9% would likewise be sufficient to make producers neutral to adoption. Copyright Tonsor and Schroeder; licensee Springer. 2015
Keywords: Adoption incentive; Beef; Cattle; Cost savings; Demand increases; E. coli O157; Economic impacts; Food safety; Vaccination (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (9)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:agfoec:v:3:y:2015:i:1:p:1-15:10.1186/s40100-014-0021-2
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DOI: 10.1186/s40100-014-0021-2
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