FMD could cost Aus $50b

14 Oct, 2013 08:30 AM
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A SERIOUS foot and mouth disease (FMD) outbreak in Australia could cost the livestock industry more than $50 billion over 10 years, according to new modelling from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

A new ABARES report has shown the financial blow to industry could be much higher than earlier estimated, with a 2011 update of the Productivity Commission 2001 report estimating losses over a 10-year period ranging from $7.1b for a small three-month outbreak to $16b for a large 12-month outbreak.

Acting ABARES executive director Dr Kim Ritman said producers of beef, sheep, dairy and wool would be devastated by a large FMD outbreak.

“All red meat, live animal and livestock product exports to most major trading partners would stop until the disease was eradicated and market access could be renegotiated,” Dr Ritman said.

Dr Ritman noted this could be a lengthy process, pointing to the experiences of other countries with disease outbreaks and Australia’s own challenges in opening new export markets.

For large exporters, this would result in product being diverted to the domestic markets, reducing product prices.

“It could take several years before we could get our product back into our major export markets,” Dr Ritman said.

Australian live cattle exports totalled 633,703 head in 2012-13, valued at A$588.7 million, while Australian live sheep exports totalled 2,057,685 head in 2012-13, valued at $201 million. Indonesia was the largest importer of Australian beef, while the Middle East took more than 99 per cent of Australian sheep exports.

Australia’s livestock industries have not been exposed to FMD and are "fully susceptible", according to the Department of Agriculture. The disease is found as close to Australia as Malaysia. It is also reported across the Middle East, Africa, Asia and South America. Most recently, the outbreaks in Japan and Korea were due to FMD serotype O virus.

While biosecurity controls have kept FMD out of Australia for more than 130 years, it is a highly contagious disease.

FMD affects cloven-hoofed animals, causing distress in adult animals and often death in younger ones, although the meat remains safe for human consumption.

While it can cause serious production losses the most significant impact of the disease would be its effect on trade.

Australia’s chief veterinary officer Dr Mark Schipp said the ABARES report served as a timely reminder about the importance of maintaining an effective biosecurity system in Australia.

“We have stringent controls at the border and we do quite a lot of work with our near neighbours in south-east Asia to minimise the risk of it getting in,” Dr Schipp said.

Dr Schipp said plans are in place to ensure that, in the unlikely event that the disease did get into the country, it would be eradicated as quickly as possible.

The ABARES report assessed the economic and social impacts under a few FMD outbreak scenarios and showed that while still very costly, a small outbreak that is identified and eradicated quickly is not as devastating for producers and rural communities.

The clinical signs of FMD are fever followed by the appearance of fluid-filled blisters between the toes and on the heels and especially on the lips, tongue and palate of infected animals. Foot lesions leave animals lame and unable to walk to feed or water. Tongue and mouth lesions are very painful and cause animals to drool and stop eating.

Human infections have been reported but they are very rare and do not result in serious disease. Humans can carry the virus in their nose for up to 24 hours and can be a source of infection for animals.

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READER COMMENTS

SteveMills
14/10/2013 11:15:17 AM

If FMD could cost Australia $50bn then why is the Quarantine dept cutting staff by 40% at the Sydney International Mail Centre, 20% at Sydney Airport and 15% in their cargo section?
inverell
14/10/2013 12:15:02 PM

Steve most of that cost would be on livestock producers and rural areas (we don't count). All sides of Govt have shown they don't care at all about Ag in this country. What you describe is more proof that they don't care about protecting our industry. Actions speak louder than words and the Govt have proven that they want to destroy Ag in this country.
David Fleming
15/10/2013 3:39:10 AM

On one hand we have what would be our nation's greatest agricultural crisis and on the other our nation's national parks harbouring the future carriers of FMD. Feral PIGS. Not just a few pigs. Thousands of pigs protected by national parks and wildlife unwillingness to address the problem.
Frontline
15/10/2013 8:01:52 AM

Let me see; the helicopter gunships are fuelled & fully armed, the mini-Rambo’s have been briefed and signed the obligatory confidentially agreements & ably assisted by CCA & SCA, meanwhile, back at central command the 3 star politicians will instruct their propaganda unit to defend the integrity of the politicians border security policy, whilst at the same time sheeting home the blame to a single farmer & explaining why compensation will not be paid yet, will be silent on the fact that FMD can’t survive in our climate & that after 140 yrs they don’t have any 21st century alternatives.
Archibald
16/10/2013 8:00:08 AM

Sounds like a good R&D project for MLA. Pay a European vaccine Co. $50m to develop a vaccine instead of the mindless projects they waste money on now!!

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