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

Kamina Keiko Johnson,Dustin L Pendell

doi:10.3389/fvets.2017.00189

Abstract

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.

Highlights

Bovine respiratory disease (BRD) is endemic and one of the most common and costly diseases in commercial North American feedlots [1]
These changes reflect the differences in margins producers receive and consumer welfare under the BRD reduction scenario
The $4,965 million loss to beef cattle producers does include the following from the cattle that are not affected by BRD in the reduction scenario, but were affected in the BRD baseline scenario:

Summary

Introduction

Bovine respiratory disease (BRD) is endemic and one of the most common and costly diseases in commercial North American feedlots [1]. BRD is a general term that covers upper and lower respiratory diseases in cattle caused by stress, viral infection, and/or bacterial infection [2]. BRD is a complex multifactorial disease caused by interactions between infectious agents (e.g., viruses, bacteria, and/or parasites), environmental factors (e.g., transportation, temperature fluctuations, and ventilation), and host characteristics (e.g., immune status, genetics, and age). In addition to feedlot cattle, recently weaned calves, nursing beef calves, housed dairy calves, and lactating dairy cows with lung infections that cause pneumonia are at higher risk for BRD [7]. Central components of preconditioning include low-stress weaning, weaning several days to weeks in advance of sale, administration of clostridial vaccines, administration of vaccines for respiratory viruses and bacteria, dehorning and castration with more healing time prior to sale, and training calves to bunk feed.

Methods

Results

Conclusion