Card Set Information
Animal Health Economics
Animal Health & Economics
What economic risks do animal diseases have on people
What drives the global trade of commodity markets?
(now more prominant than 60 years ago because we trade so much)
In time what has affected economics and trade?
The changing face of consumer demand! (what we like and when we like it)
regulation of food safety, animal health in international trade
Economic measures of trade and market effects
Talk about global trade in meat products
high economic value that has increased in value and volume of amount exported in the last few years
lots of money at stake and disruption give a giant loss
How can economics help with animal health (particularily trade)?
identifies and explains why individual producers and market behave in a certain way (incentives and cost)
Justify the need for international regulation and standard in farm animal husbandry and trade
measure the impact of disease spread and regulation
Advise policy makers at home and abroad about feasible solutions and way to get there
What did the Rinderpest outbreak in Belgium create?
the need to create and international body to reguklate trade in animals and meat products (control movement etc..)
therefore the OIE was founded in 1924 by 28 countries
: the world organization for animal health (Global body that governs elements of mvmnt between countries, set standards)
disease info system, disease surveillance and control, regulation of international trade (to allow ppl to take precautions)
After the OIE what was founded in 1995
WTO- world trade organization
governs the economics of trade (economic counterpart of the OIE) fair and equal trade
agreement on the application of sanitary and phytosanitary measures (SPS)
: lays out rules of trade and trade products that can be affected by sanitary and phytosanitary issues
Agreement on the application of technical barriers to trade (TBT)
What is the difference between the WTO and the OIE
OIE is responsible for drafting the international animal health
standards while the WTO lays out the economic side of rules and fair
What is the
agreement and animal trade?
Tells not what to do but
what not to do
facilitate global trade in agri-food products avoid the use of SPS measures to restrict trade (close boarders)
recognize the right to protect human, animal and plant health based on scientific background (OIE)\
scientific evidence needed to allow SPS border measures (import restrictions, border closure etc)
Harmonization, equivalence, transparency must be met when implementing trade measures (=build trust)
Why are trade policies necessary?
SPS allows countries to take measures to protect citizens against public health safey and threasts!
AI and BSE are proven cases
Economic literature reports widespread misuse of SPS measures to protect markets and "stabalize" prices
Severe negative effects for countries depending on food exports, especially developing countries dependant on agri foods
What are some of the economic impacts of animal health measures?
measures used to control disease outbreaks:
-widespread culls of live animals in infected areas = costs to farmers, current/ futrue loss of income
-vaccination of surrounding stock= added cost to healthy livestock populations
-tight controls on animal (meat) movement domestically and international = loss of business and/or trade
What are the take home messages about globalization, WTO &SPS agreements and OIE surveillance, and domestic us of SPS
1. Globalization of food markets makes them more vulnerable to shocls from animal disease outbreaks somewhere in the world (ie AI and BSE)
2. WTO and SPS Agreement, OIE surveillance and scientific evidence support fair and just regulation of livestock trade and policy measures
3. BUT countries also resort to domestic SPS policies to protect agi markets from foreign competition (cheaper imports)--> barrier to trade
Take home message: What does economics show about barriers to trade?
economics shows that barriers to trade hurt exporters and importers
Take home message: which countries loose the most economically?
exporters and importers
dependent on trade
loose the most economically
Take home message: role of consumer response in incidences
consumer response to animal heatlh incidences can contribute to economic losses in livestock sectors
Take home message: What are the various tools of the OIE and WTO?
R&D, global monitoring system, technical assistance to assure fair trade competition and protection of human/ animal health