Source: Chris Scott, MEATINGPLACE, 5/26/16


A new report indicates that the economic impact of highly pathogenic avian influenza (HPAI) on local areas extends well beyond poultry farms, according to researchers who studied the 2014-2015 outbreak that killed more than 50 million birds.

While direct impacts included the loss of livestock and lower egg and poultry output, indirect losses included transportation and commuter disruptions, loss of local tax revenues and reduced tourism, the report said.

Additionally, cleanup costs, protective equipment expenses, labor charges and revenue changes for poultry farmers and processors and higher consumer prices also occur, according to the report.

Such disasters also altered competition between poultry industry companies, and modifications of income distribution and resource allocation also can compound economic losses, the report added.

The research by members of USDA departments, veterinarians and academics focused on economic and livestock issues appears in Choices magazine from the Agricultural & Applied Economics Association.

Looking forward, the researchers suggest preventative investments in planning and preparation, industry contracts and government price lists and pacts to mitigate response and cleanup risks and costs. The report also offers strategic solutions including equipment staging, stockpiling, storage and procurement plans that can cover worst-case scenarios when it comes to future outbreaks.

Risk-based instruments like livestock insurance for diseases, however, remains “an open question for future research and discussion,” the report noted.

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