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Article
Assessment of the economic impacts of porcine epidemic diarrhea virus in the United States
Journal of Animal Science
  • Lee L Schulz, Iowa State University
  • Glynn T. Tonsor, Kansas State University
Document Type
Article
Publication Date
11-10-2015
DOI
10.2527/jas2015-9136
Abstract

Porcine epidemic diarrhea virus (PEDV), which first emerged in the United States in 2013, spread throughout the U.S. hog population. Limited preemptive knowledge impeded the understanding of PEDV introduction, spread, and prospective economic impacts in the United States. To assess these impacts, this article reviews the timeline of PEDV in the United States and the corresponding impacts. PEDV is a supply-impacting disease and is not demand inhibiting, as pork demand remained strong since PEDV first appeared. Pig losses reached significant levels during September 2013 through August 2014, with the majority of pork production impacts occurring in 2014. PEDV had differing impacts for subsectors of the pork industry. A budget model demonstrates that producers could have had pig losses and decreases in productivity proportionally smaller than price increases, resulting in net returns above what was expected before the major outbreak of PEDV. Previous literature is reviewed to identify the potential main industry beneficiaries of the PEDV outbreaks in the United States. As a result of reduced volumes of available pig and hog supplies, reductions in annual returns likely occurred for packers, processors, distributors, and retailers. In addition, pork consumers who experienced reduced-supply-induced pork-price increases were likely harmed directly by higher prices paid for pork and indirectly as prices of competing meats were also likely strengthened by PEDV. This article also identifies future considerations motivated by the appearance of PEDV in the United States, such as discussions of industry-wide efficiency and competitive advantage, the future role of PEDV vaccines, enhancement in biosecurity measures, and consumer perceptions of food safety and insecurity.

Comments

This article is from Journal of Animal Science 93 (2015): 5111, doi: 10.2527/jas2015-9136. Posted with permission.

Copyright Owner
American Society of Animal Science
Language
en
File Format
application/pdf
Citation Information
Lee L Schulz and Glynn T. Tonsor. "Assessment of the economic impacts of porcine epidemic diarrhea virus in the United States" Journal of Animal Science Vol. 93 Iss. 11 (2015) p. 5111 - 5118
Available at: http://works.bepress.com/lee-schulz/6/