Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots

Bovine respiratory disease (BRD) is a common endemic disease among North American feedlot cattle. BRD can lead to significant economic losses for individual beef cattle feedlot producers through mortality and morbidity. With promising new management and technology research that could reduce BRD prev...

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Main Authors: Kamina Keiko Johnson, Dustin L. Pendell
Format: Article
Language:English
Published: Frontiers Media S.A. 2017-11-01
Series:Frontiers in Veterinary Science
Subjects:
Online Access:http://journal.frontiersin.org/article/10.3389/fvets.2017.00189/full
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author Kamina Keiko Johnson
Dustin L. Pendell
author_facet Kamina Keiko Johnson
Dustin L. Pendell
author_sort Kamina Keiko Johnson
collection DOAJ
description Bovine respiratory disease (BRD) is a common endemic disease among North American feedlot cattle. BRD can lead to significant economic losses for individual beef cattle feedlot producers through mortality and morbidity. With promising new management and technology research that could reduce BRD prevalence, this study evaluates the potential impacts of a reduction of BRD in the US beef cattle feedlot sector. Using a multi-market, multi-commodity partial equilibrium economic model of the US agricultural industry, we evaluate the market impacts of reduced BRD to producers from various livestock, meat, and feedstuffs industries. We find that as morbidity and mortality is reduced, beef cattle producers experience losses due to increased supplies (lower beef cattle prices) and increased demand for feedstuff (higher feedstuff prices). Beef cattle processors see gains as the price of beef cattle is lower, whereas feedstuff producers gain from higher feedstuff prices. Producers in the allied industries (pork, lamb, poultry, and eggs) see a small reduction in returns as consumers substitute with less expensive beef products. Consumers see gains in welfare as the increase in beef cattle supply results in lower beef prices. These lower beef prices more than offset the small increases in pork, lamb, poultry, and egg prices. Overall, the potential economic welfare change due to management and technologies that reduce BRD is a net gain for the US society as a whole.
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spelling doaj.art-f708f35018144901b84fe0f2fe7a22f62022-12-21T19:44:44ZengFrontiers Media S.A.Frontiers in Veterinary Science2297-17692017-11-01410.3389/fvets.2017.00189298607Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle FeedlotsKamina Keiko Johnson0Dustin L. Pendell1Animal and Plant Health Inspection Service, United States Department of Agriculture, Washington DC, CO, United StatesKansas State University, Manhattan, KS, United StatesBovine respiratory disease (BRD) is a common endemic disease among North American feedlot cattle. BRD can lead to significant economic losses for individual beef cattle feedlot producers through mortality and morbidity. With promising new management and technology research that could reduce BRD prevalence, this study evaluates the potential impacts of a reduction of BRD in the US beef cattle feedlot sector. Using a multi-market, multi-commodity partial equilibrium economic model of the US agricultural industry, we evaluate the market impacts of reduced BRD to producers from various livestock, meat, and feedstuffs industries. We find that as morbidity and mortality is reduced, beef cattle producers experience losses due to increased supplies (lower beef cattle prices) and increased demand for feedstuff (higher feedstuff prices). Beef cattle processors see gains as the price of beef cattle is lower, whereas feedstuff producers gain from higher feedstuff prices. Producers in the allied industries (pork, lamb, poultry, and eggs) see a small reduction in returns as consumers substitute with less expensive beef products. Consumers see gains in welfare as the increase in beef cattle supply results in lower beef prices. These lower beef prices more than offset the small increases in pork, lamb, poultry, and egg prices. Overall, the potential economic welfare change due to management and technologies that reduce BRD is a net gain for the US society as a whole.http://journal.frontiersin.org/article/10.3389/fvets.2017.00189/fullbovine respiratory diseasefeedlotpartial equilibrium modelreduce disease prevalenceUnited States
spellingShingle Kamina Keiko Johnson
Dustin L. Pendell
Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots
Frontiers in Veterinary Science
bovine respiratory disease
feedlot
partial equilibrium model
reduce disease prevalence
United States
title Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots
title_full Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots
title_fullStr Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots
title_full_unstemmed Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots
title_short Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots
title_sort market impacts of reducing the prevalence of bovine respiratory disease in united states beef cattle feedlots
topic bovine respiratory disease
feedlot
partial equilibrium model
reduce disease prevalence
United States
url http://journal.frontiersin.org/article/10.3389/fvets.2017.00189/full
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