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Report: Restrictive Policies Resulting from Animal Disease Outbreaks Have High Economic Costs

Monday, September 8, 2008

(American Meat Institute)

The economic effects of new or amended policies and regulations resulting from animal and poultry disease outbreaks can often be much greater and much longer lasting than the immediate effect of the outbreak itself, according to a recent report by the United States Department of Agriculture (USDA) Economic Research Service.

The report, which used Bovine Spongiform Encephalopathy (BSE) as an example, demonstrates the pervasiveness of the effects of restrictive feed policies and regulations, particularly as they relate to meat and bone meal and other protein feeds.

Costs evaluated include those assumed by consumers via changes in supplies of secondary and final products; environmental costs associated with disposal of hazardous materials; lost value of products to the rendering industry, including a decline in value of meat and bone meal; and supply disruptions and substitutions within the feed market sector increase the total costs of disease mitigation regulations.

To view this report in its entirety, click here: http://www.ers.usda.gov/Publications/LDP/2008/08Aug/LDPM17001/ldpm17001.pdf

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