The exploration of financial impacts among three stakeholders during the 2016 Foot-and-Mouth Disease Outbreak in a Dairy Cooperative, Chiang Mai province, Thailand
Foot-and-mouth disease (FMD) leads to a huge impact to dairy farmers as milk selling is not allowed during the outbreak. This study thus aimed to estimate the economic impact of FMD outbreaks in a dairy cooperative located in Chiang Mai province, Thailand. We explored economic losses in three diff...
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Main Authors: | , , , , , , , , , |
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Format: | Article |
Language: | English |
Published: |
2020
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Online Access: | https://repository.li.mahidol.ac.th/handle/123456789/60638 |
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Institution: | Mahidol University |
Language: | English |
Summary: | Foot-and-mouth disease (FMD) leads to a huge impact to dairy farmers as milk selling is not allowed
during the outbreak. This study thus aimed to estimate the economic impact of FMD outbreaks in a dairy
cooperative located in Chiang Mai province, Thailand. We explored economic losses in three different categories
including farmers, dairy cooperative and governmental authority. A multiple linear regression model was
employed to identify the key factors that contribute to the financial impacts. Our results reveal that farmer
losses were resulted from milk selling prohibition, treatment service and their supplies. The loss per cow was
approximated at 33.9 USD resulting in the total loss of 31,120.25 USD. During the outbreaks, the cooperative
spent some expenses on farmer compensation, overtime wages, laboratory testing, together with the loss due to
raw milk reduction and decline on selling goods. The impact on this sector was around 3,725.44 USD. At the
provincial DLD office, veterinary authority needed to set up animal checkpoints during the outbreak and carried
out laboratory testing for suspected samples. The cost of these control measures was 2,466.58 USD. In total, the
financial impact of the 2016 FMD outbreak in this certain cooperative was estimated at 37,312.27 USD.
According to our model, the key parameters that can predict the economic impact were milk income, fuel cost and
feed cost (R2
= 0.88). We anticipate that our model may help to raise awareness on these economic impacts and
manage the identified factors during the course of the outbreaks. |
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