ANIMAL HEALTH

ECONOMICS
Presented by: Bhawana Bhandari
Roll no: 05
Semester: 6th
Contents:
Introduction of Animal Health Economics.
Affecting changes
Livestock production
Effects of disease.
Cost of diseases
Principle of marginal returns.
Level and type of analysis.
Distribution of benefits of disease control.
Data requirement.
A. INTRODUCTION of Animal Health
Economics:
A relatively new Progressively developing Optimizes animal
a solid framework of health
discipline
concepts,procedures & management
data

Simply ,concerned with Involved in the cost

allocation of resources of animal diseases
for disease prevention and profit of control
of animals.
Key Changes Affecting Decision On
Animal Health
 Diseases with more complex epidemiology to be tackled by veterinary
profession
 Self sufficiency for livestock products receives lower priority
 Weakening political commitment
 Low importance in national economy
 Responsibilities being transferred from public to private sectors
D. Livestock productivity

Livestock Efficiency of Economic

Productivity = conversion of value of each
rate of output / inputs into type of input &
rate of input outputs output
E. Effects of Diseases
a. Direct losses

Reduce the quantity

Destroys the basic & quality of
resources of the Lowers the efficiency output .For eg.drop
livestock production of the production in egg
process .Eg.through process production,lowered
the mortality of milk yield,poor
breeding animals hides ,etc
 b. Indirect Losses

additional costs incurred

1.
3. Suboptimal
during 2. Detriment of human
exploitation of
vaccination ,quarantine ,tre health through zoonosis
available resources
atment ,etc
F. Cost of Disease
We have ,
C=L+ E
where , C= Total Cost
L = production losses
E = control expenditures
G. Principle of Marginal Returns
The control costs differ between production system
Within a given production system, there is inverse
relation between.
Production losses and control expenditure
In most cases relationship between losses and
expenditure will be non linear.
H. Level and Type of Analysis
During analysis , first clarifications to be made are :

1. Whose point of view will be considered ?

2. The alternatives to animal health problems are

farmers , veterinarians,processor ,farming
community and society.
I. Distribution of benefits of disease
control
Demand :
relationship
Determined between the
by demand market price &
& supply quantity of
people willing
Supply : and able to buy
relationship
between the
market price
& quantity of
people willing
& able to sell
J. Data requirements

Can be classified into following headings:

1. Fundamental knowledge of the disease
2. Information on disease occurrence
3. Effects of the disease on the production process
4. Potential control measures
5. Effects of disease beyond the production process
6. Expected benefits of control measures
7. Cost of control measures