H.W. Saatkamp

Financial consequences of the Dutch bluetongue serotype 8 epidemics of 2006 and 2007

This study calculates the financial consequences of the bluetongue serotype 8 (BTV8) epidemics of 2006 and 2007 in the Netherlands. We constructed a deterministic economic model that is compatible with the Dutch livestock production systems for cattle, sheep and goats. Two hundred cattle farms and 270 sheep farms were infected with BTV8 in the epidemic of 2006, whereas 30,417 cattle farms, 45,022 sheep farms and 35,278 goat farms were estimated to be infected in the epidemic of 2007. The net costs (costs minus benefits) of the BTV8 epidemic of 2006 (BT2006) was estimated at 32.4 million Euros. The net costs of the BTV8 epidemic of 2007 (BT2007) was valued at 164-175 million Euros, depending on the mortality and morbidity rates for cattle used. The losses account for 2%, 10% and 11% of the gross value of the primary production within Dutch pasture-based livestock farming that equals 1.6 billion Euros. Control measures accounted for 91% of the net costs of the BT2006, while diagnostic costs represented 7%. By contrast, for the BT2007 92% of the net costs were in the form of production losses and veterinary treatment fees, while only 6% were related to control measures. Furthermore, the control costs dropped from 29,630 in BT2006 to 10,990 in BT2007 mainly due to the costly indoor housing that was not obligatory during the BT2007 epidemic. The cattle sector suffered 88% and 85% of the net costs for the BT2006 and BT2007, respectively; the highest of all sectors.

A state-transition simulation model for the spread of Salmonella in the pork supply chain

Abstract A major food safety issue in pork is Salmonella contamination. A stochastic state-transition simulation model was described to simulate the spread of Salmonella from multiplying through slaughter, with special emphasis for critical control points to prevent or reduce Salmonella contamination. Design of experiments and metamodelling were used for a sensitivity analysis. The finishing stage and the slaughterhouse appeared to be the most important stages in the supply chain to reduce the prevalence of Salmonella contaminated carcasses.

Cost-effectiveness of controlling Salmonella in the pork chain

Pork is one of the sources of food-borne salmonellosis in humans. In this paper, the cost-effectiveness of different control scenarios against Salmonella in the stages finishing, transport, lairage and slaughtering is explored. A stochastic simulation model was used for the epidemiological analysis and a deterministic model for the economic evaluation. Results showed that the cost-effectiveness of interventions in the finishing and slaughtering stages is the highest with respect to the reduction of the prevalence of contaminated carcasses. However, the cost-effectiveness is reduced in case not all farms or firms within a stage intervene to reduce the prevalence of Salmonella.

Financial Evaluation of Different Vaccination Strategies for Controlling the Bluetongue Virus Serotype 8 Epidemic in the Netherlands in 2008

Background Bluetongue (BT) is a vector-borne disease of ruminants caused by bluetongue virus that is transmitted by biting midges (Culicoides spp.). In 2006, the introduction of BTV serotype 8 (BTV-8) caused a severe epidemic in Western and Central Europe. The principal effective veterinary measure in response to BT was believed to be vaccination accompanied by other measures such as movement restrictions and surveillance. As the number of vaccine doses available at the start of the vaccination campaign was rather uncertain, the Dutch Ministry of Agriculture, Nature and Food Quality and the Dutch agricultural industry wanted to evaluate several different vaccination strategies. This study aimed to rank eight vaccination strategies based on their efficiency (i.e. net costs in relation to prevented losses or benefits) for controlling the bluetongue virus serotype 8 epidemic in 2008. Methodology/Principal Findings An economic model was developed that included the Dutch professional cattle, sheep and goat sectors together with the hobby farms. Strategies were evaluated based on the least cost - highest benefit frontier, the benefit-cost ratio and the total net returns. Strategy F, where all adult sheep at professional farms in the Netherlands would be vaccinated was very efficient at lowest costs, whereas strategy D, where additional to all adult sheep at professional farms also all adult cattle in the four Northern provinces would be vaccinated, was also very efficient but at a little higher costs. Strategy C, where all adult sheep and cattle at professional farms in the whole of the Netherlands would be vaccinated was also efficient but again at higher costs. Conclusions/Significance This study demonstrates that a financial analysis differentiates between vaccination strategies and indicates important decision rules based on efficiency.

Economic Analysis of HPAI Control in the Netherlands I: Epidemiological modelling to support economic analysis

Economic analysis of control strategies for contagious diseases is a necessity in the development of contingency plans. Economic impacts arising from epidemics such as highly pathogenic avian influenza (HPAI) consist of direct costs (DC), direct consequential costs (DCC), indirect consequential costs (ICC) and aftermath costs (AC). Epidemiological models to support economic analysis need to provide adequate outputs for these critical economic parameters. Of particular importance for DCC, ICC and AC is the spatial production structure of a region. Spatial simulation models are therefore particularly suited for economic analysis; however, they often require a large number of parameters. The aims of this study are (i) to provide an economic rationale of epidemiological modelling in general, (ii) to provide a transparent description of the parameterization of a spatially based epidemiological model for the analysis of HPAI control in the Netherlands and (iii) to discuss the validity and usefulness of this model for subsequent economic analysis. In the model, HPAI virus transmission occurs via local spread and animal movements. Control mechanisms include surveillance and tracing, movement restrictions and depopulation. Sensitivity analysis of key parameters indicated that the epidemiological outputs with the largest influence on the economic impacts (i.e. epidemic duration and number of farms in the movement restriction zone) were more robust than less influential indicators (i.e. number of infected farms). Economically relevant outputs for strategy comparison were most sensitive to the relative role of the different transmission parameters. The default simulation and results of the sensitivity analysis were consistent with the general outcomes of known HPAI models. Comparison was, however, limited due to the absence of some economically relevant outputs. It was concluded that the model creates economically relevant, adequate and credible output for subsequent use in economic analysis. A detailed economic analysis is presented in a subsequent article.

Mid-term financial impact of animal welfare improvements in Dutch broiler production

This study used a stochastic bioeconomic simulation model to simulate the business and financial risk of different broiler production systems over a 5-yr period. Simulation analysis was conducted using the @Risk add-in in MS Excel. To compare the impact of different production systems on economic feasibility, 2 cases were considered. The first case focused on the economic feasibility of a completely new system, whereas the second examined economic feasibilities when a farm switches from a conventional to an animal welfare-improving production system. A sensitivity analysis was conducted to assess the key drivers of economic feasibility and to reveal systematic differences across production systems. The study shows that economic feasibility of systems with improved animal welfare predominantly depends on the price that farmers receive. Moreover, the study demonstrates the importance of the level and variation of the price premium for improved welfare, particularly in the first 5 yr after conversion. The economic feasibility of the production system increases with the level of welfare improvements for a sufficiently high price level for broiler meat and low volatility in producer prices. If this is not the case, however, risk attitudes of farmers become important as well as the use of potential risk management instruments.

Sensitivity Analysis to Evaluate the Impact of Uncertain Factors in a Scenario Tree Model for Classical Swine Fever Introduction

Introduction of classical swine fever virus (CSFV) is a continuing threat to the pig production sector in the European Union. A scenario tree model was developed to obtain more insight into the main risk factors determining the probability of CSFV introduction (P(CSFV)). As this model contains many uncertain input parameters, sensitivity analysis was used to indicate which of these parameters influence model results most. Group screening combined with the statistical techniques of design of experiments and meta-modeling was applied to detect the most important uncertain input parameters among a total of 257 parameters. The response variable chosen was the annual P(CSFV) into the Netherlands. Only 128 scenario calculations were needed to specify the final meta-model. A consecutive one-at-a-time sensitivity analysis was performed with the main effects of this meta-model to explore their impact on the ranking of risk factors contributing most to the annual P(CSFV). The results indicated that model outcome is most sensitive to the uncertain input parameters concerning the expected number of classical swine fever epidemics in Germany, Belgium, and the United Kingdom and the probability that CSFV survives in an empty livestock truck traveling over a distance of 0-900 km.

Cross-border collaboration in the field of highly contagious livestock diseases: A general framework for policy support

This paper analyses the potential gains and the main challenges for increased cross-border collaboration in the control of highly contagious livestock diseases in regions with cross-border reliance on production and consumption of livestock commodities. The aim of this intensification of cross-border collaboration is to retain the economic advantages of cross-border trade in livestock and livestock commodities while maintaining a low risk of highly contagious livestock diseases. From these two foci, possibilities for future policy making with respect to highly contagious livestock diseases are discussed: peacetime cross-border cooperation to improve the cost-effectiveness of routine veterinary measures and crisis time cross-border harmonization of current disease control strategies. A general disease management framework was used to describe the way in which these two fields are related to and affect the epidemiological system and, consequently, how they impact the stakeholders. In addition to this framework, the importance of a good understanding of influencing factors, that is, the production structure of livestock, was stressed because these factors are important determinants of the frequency and magnitude of highly contagious livestock diseases and their economic impact. The use of the suggested integrated approach was illustrated for the extended cross-border region of the Netherlands and Germany, that is, North Rhine Westphalia and Lower Saxony. For this region, current difficulties in cross-border trade in livestock and livestock commodities and possibilities for future cross-border collaboration were examined. The concepts and ideas presented in this paper should foster future development of cross-border collaboration in animal health control.

A conceptual framework for economic optimization of single hazard surveillance in livestock production chains

Economic analysis of hazard surveillance in livestock production chains is essential for surveillance organizations (such as food safety authorities) when making scientifically based decisions on optimization of resource allocation. To enable this, quantitative decision support tools are required at two levels of analysis: (1) single-hazard surveillance system and (2) surveillance portfolio. This paper addresses the first level by presenting a conceptual approach for the economic analysis of single-hazard surveillance systems. The concept includes objective and subjective aspects of single-hazard surveillance system analysis: (1) a simulation part to derive an efficient set of surveillance setups based on the technical surveillance performance parameters (TSPPs) and the corresponding surveillance costs, i.e., objective analysis, and (2) a multi-criteria decision making model to evaluate the impacts of the hazard surveillance, i.e., subjective analysis. The conceptual approach was checked for (1) conceptual validity and (2) data validity. Issues regarding the practical use of the approach, particularly the data requirement, were discussed. We concluded that the conceptual approach is scientifically credible for economic analysis of single-hazard surveillance systems and that the practicability of the approach depends on data availability.

A Framework for Categorization of the Economic Impacts of Outbreaks of Highly Contagious Livestock Diseases.

A framework for categorization of economic impacts of outbreaks of highly contagious livestock diseases (HCLD) is presented. This framework interprets veterinary measures to control HCLD outbreaks with reference to economic definitions of costs and benefits, and the implications for value losses both for different stakeholders affected and society as a whole. Four cost categories are identified, that is virus control-related direct costs (DC), spread prevention and zoning-related direct consequential costs (DCC), market and price disruption-related costs during (indirect consequential costs, ICC) and after the outbreak (aftermath costs, AC). The framework is used to review existing literature on cost estimation for different stakeholders. This review shows considerable differences between studies, making comparison of results difficult and susceptible to misunderstanding. It is concluded that the framework provides a logical basis for all future analyses of the economic impacts of HCLD.