Transcript click here to file

BOVINE SPONGIFORM
ENCEPHALOPATHY (BSE) or “Mad
Cow Disease”: Cause and effect on
the beef market.
Name: Odette K Busambwa
Introduction
•
•
The BSE is a disease of an adult cattle
affecting the central nervous central. The
affected cattle progressive behavior changes,
abnormal posture, incoordination, reduced milk
production and weigh lost (Mad Cow Disease,
information page).
The BSE was for the first time diagnosed
in the United states in December 23, 2003
(USDA-APHIS,2003).The disease was first
diagnosed in Great Britain in the 1986.
cow
Introduction
•
After the outbreak in British cattle, the
epidemic peaked in the 1993 at 1000 cases per
week. BSE has been diagnosed in cattle in
several European nations, Japan, Israel and
Canada (NU institution of agriculture and natural
resource, 2004). The cattle diagnosed with BSE
in the United States was imported from Canada
as an adult (USDA-APHIS,2003).
Introduction
•
•
The risk to human health is miniscule.
However, BSE can be transmitted to humans
through the consumption of infected tissues and
transmission from animal to animal is unlikely to
occur (NU institute of Agriculture and natural
resource, 2004).
Occurrence of BSE has caused great
fluctuation in production and consumption of
beef. The disease had significant effect on trade
and price of cattle and beef (Kenneth et al,
2001).
Cause
BSE is one of a family of similar diseases
known as transmissible spongiform
encephalopaties (TSE) (USDAAPHIS,2003).
The cause of the disease is not known for
sure, but a leading theory is that the
disease is transmitted by ingestion of an
infectious prion protein (Jin et al ,2004).
CAUSE
The affected cattle were connected to a
common source of feed contaminated with the
infectious prion protein of contaminated feed
products (NU Institute of Agriculture and Natural
resource,2004).
In 1996 a possible link was proposed between
BSE and a disease of human which was a variant
form of CJD (Crentzfeldt-Jacob disease), a fatal
form of TSE in man, recently observed in Britain.
Cause
This link which was likely to happen,
between vCJD and consumption of BSEcontaminated the beef industry was very
devastating to beef industry (NU institute
of Agriculture and natural resource,2004).
Effect on the beef market
 The BSE has an effect on
agriculture effect in various
countries around the world(
GREEN,2003).
 The economic effect of the
outbreak involve (Henson &
Mazzocchi,2004):
*cattle producers
*crop producers.
(devaluation of pastureland
and hayland).
*Agribusiness.
 Agribusiness includes:
+Institution (banks, farm...).
+consumer demand for beef.
+consumer perception of the
relative safeness of beef.
+beef export (lost exports on
the US beef prices).
+Live cattle future prices,
cash beef prices.
Effect on the beef market
Reduction of cattle feeders marketing for
cattle and reduction of slaughter cattle
due to the high prices.
In international market, it may take years
for exports relations to return to early
levels and needs (US, Japan and South
Korea) (Kenneth et al,2001).
Effect on the beef market
Adjustment for change in products eligible
for trade by the cattle sector (Kenneth et
al,2001).
These changes are far from cost free and
reaching implication for many products,
industries and sectors (Kenneth et al,
2001).
Conclusion
 The degree of influence of each factor on the beef
market remains unclear.
 A single ,isolated case of BSE may reduce domestic
consumption by 5-10%(USDA-APHAS,2003).
 This decline could potentially reduce the domestic price
of slaughter cattle by 13.5% and the price of feeder
cattle by 16% (USDA-APHIS,2003)
 Reduction and discontinuation of the international beef
trade: case of the Japanese experience (USDAAPHIS,2003).
Table
• The following table gives some scenarios
of effects of decreased beef demand on
Farm-level, prices and supply quantity.
Price of
slaughter cattle
Quantity
of
slaughter
cattle
Price of feeder
cattle
Quantity of
feeder
cattle
Producer
supplies
Exports
decrease
Base price
$67.14
35.8
Base
price$80.07
32.7
Base price
$22,974.00
50%
$61.63
36.6
$72.05
32.7
$21,562.00
75%
$59.99
36.9
$69.96
32.7
$21,137.00
100%
$58.34
37.1
$67.66
32.7
$20,706.00
50%
$59.64
36.9
$69.46
32.7
$21,045.00
75%
$58.05
37.2
$67.26
32.7
$20,630.00
100%
$56.46
37.4
$65.05
32.7
$20,210.00
50%
$57.99
37.2
$66.89
32.7
$20,561.00
75%
$56.26
37.5
$64.77
32.7
$20,156.00
100%
$54.71
37.7
$62.65
32.7
$19,745.00
Scenarios
Demand
decrease
5%
10%
15%
CONCLUSION
Speaking in terms of public health, in order to
prevent BSE occurrence, and ensure the safety
of humans and animals, efforts need to be
undertaken at all levels (Mijic, P. et al,2005).
Responsible state institutions should implement
effective measures to maintain consumers’ trust
and avoid possible economic losses caused by
the outbreak abroad (Mijic, P. et al,2005).
CITATION
• Green , P. (2003, Dec.). Canadian animal.
Health coalition.
• Jin, H J., Skripnitchenko, A. (2004). The
effects of the BSE outbreak in the US on
the beef and cattle industry.: W.W. Koo
(ed).
CITATION
• Kenneth, M., Perry, J.( 2003, Jan.). The
economic consequence of BSE & Food and
Mouth Disease outbreak in the US. Department
of Agriculture, A26.
• Mad Cow Disease. Information page. (2004, may
01).Retrieved 11 Nov. 2003,from
http://ianrhome.unl.ed/inthernews/bse.shtml.
citation
• Mijic, P., Tolusic, Z. ,Rimac, D. (2005, 24-27
•
Aug.). Effect of bovine spongiform
encephalopathy on consumption and beef meat
market in Croatia. University of Josip Juraj
Strossmayer in Osijek, Croatia.
NU Institute of Agriculture and Natural
Resource.( 2004, May 01). Domestic demand
helps beef industry through uncertain time.
Retrieved 11 Nov.2006, from
http://ianrnews.unl.ed/static/0405010.shtml.
Citation
• USDA-APHIS. ( 2003, Dec.23). Mad cow
disease. Retrieved 11 Nov. 2006, from
http://ianrhome.unl.ed/inthernews/bse.sht
ml.