Economic Impacts of Foot and Mouth Disease:
Economic Impacts of Foot and Mouth Disease: |
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| Foot and mouth disease (FMD) is a global issue affecting every continent except Antarctica. At the local level the disease reduces farmer income and food available for consumption. At the national level FMD slows economic growth by severely limiting trade opportunities. Though it is understandable why many countries strive to eradicate the disease it may not be feasible on a worldwide level, because not all countries have adequate finances or a market dependency on livestock. The Americas have a great stake in the control of FMD as much of the cattle and swine production of the world occurs here. | |
| Southern Brazil, Argentina and Uruguay were all entering the international cattle market as "FMD-free". Unfortunately, the disease was discovered in each of these areas in the middle of 2000. This recurrence of FMD effectively halted all trade plans and caused millions (US$) in lost trade revenues, and other losses due to the cost of depopulation, disinfection and containment of the outbreaks. |
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Brazil has the largest national herd of cattle in the world (170 million head) and also ranks third in global pig production. The recurrence of FMD has been economically devastating. |
| The Office International des Epizooties (OIE) maintains data on the occurrence of FMD and the status of a country regarding this disease (www.oie.int). To be considered "FMD-free" and open for international trade without restrictions, a country must prove that they do not have the disease and are not currently vaccinating program against FMD. There is a distinction between "FMD-free without vaccination" and "FMD-free with vaccination", the former status having considerably greater trade opportunities. | |
FMD affects trade markets depending on the FMD free status of the country: Trade Impacts
An outbreak of FMD would be devastating to the U.S. agricultural economy: Potential cost of a US outbreak