UPDATED ESTIMATED ECONOMIC WELFARE IMPACTS OF PORCINE EPIDEMIC DIARRHEA VIRUS (PEDV)

Philip Paarlberg

No 174517, Working papers from Purdue University, Department of Agricultural Economics

Abstract: Estimates of pig loss from Porcine Epidemic Diarrhea Virus (PEDv) determine changes in economic welfare. Hog and pork prices rise, so aggregate returns to hog growers increase. For a 3% annual pig loss, growers gain $1.2 billion annually, while for a 6% annual pig loss, the gain is $2.3 billion. Losses to infected growers are smaller than gains to uninfected growers. Annual returns to hog slaughter fall by $481 to $929 million. Retail value-added falls by $1.1 to $2.2 billion. Annual consumer surplus also declines from $300 to $600 million. The estimated net annual decrease for U.S. economic welfare from PEDv summed across all effects ranges from $900 million to $1.8 billion.

Keywords: Demand and Price Analysis; Livestock Production/Industries; Marketing (search for similar items in EconPapers)
Pages: 38
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:puaewp:174517

DOI: 10.22004/ag.econ.174517

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