Report reveals higher cost of disease
Endemic diseases are costing Australian sheep producers far more money than originally thought - with internal parasites alone costing $369 million a year in prevention measures, increased costs and production losses.
The new data comes from a comprehensive report on the economic cost of endemic disease in Australian sheep and cattle.
Image: the cost of prevention and treatment is a major factor in calculating the economic impact of parasites and disease, as well as production loss.
Prepared by Meat and Livestock Australia (MLA) and co-funded by AWI, Assessing the economic cost of endemic disease on the profitability of Australian beef cattle and sheep producers provides far more comprehensive and updated figures than those that have been used as the industry standard for more than a decade.
"Studies over the past 30 years have looked at the cost of endemic sheep and beef cattle diseases in Australia," the report states.
"The studies have two limitations in their current applicability to the Australian industry. First, many of them are now at least 10 years old and do not reflect current disease control practices, livestock numbers and the current economic situation in the industries. Second, the studies have often used different methodologies so the results are not directly comparable between diseases and different species."
One of the first findings of the study was that the annual economic costs of disease on sheep production were underestimated and dated. For a long time the figure of $220 million a year for worms and scouring has been quoted when, in fact, the study found the annual national cost (through production loss and prevention and treatment cost) of internal parasites was $369 million.
The largest portion of this cost ($300 million) is from production loss, with the remainder from expenses associated with prevention and treatment.
Flystrike was the second most costly disease at $280 million, up from the previously quoted figure of $161 million. However, the impact of lice, the third most costly disease, has decreased from $169 million to $123 million annually.
Post-weaning mortality costs sheep producers $89 million, making it the fourth highest cost. The remainder of the economic impact was due to perennial ryegrass toxicity, bacterial enteritis, arthritis, footrot, phalaris toxicity and Ovine Johne's disease.
Dr Joan Lloyd, AWI's program manager for animal health and welfare, says the results of the study will help to determine research directions.
"Establishing research priorities is always difficult, but a greater understanding of the cost – not just of treating or preventing the disease, but in the loss to the producer – which is not always visible, will help greatly," Dr Lloyd says. "In some cases, research may not be necessary to impact on that cost – it may be improved implementation of current technology. Where this is the case, large investments in research may have little impact on the cost of the disease.
"This data will also help growers, and the industry, understand the importance of animal health and be aware of the hidden losses due to high-impact diseases, such as internal parasites and flystrike."
A review of literature was undertaken to assess which research was still applicable. Modelling was carried out on the major diseases and their economic impact at the farm level and the results aggregated to regional and national levels based on the distribution of the disease. Economic impacts were restricted to productivity effects, so did not include the cost of regulation, zoonoses or trade restrictions.
The report was prepared by David Sackett and Phil Holmes of agricultural consultants Holmes Sackett and Associates, Kym Abbott of Charles Sturt University veterinary school, beef cattle nutrition and veterinary consultant Sandi Jephcott and Mark Barber of agricultural consultants ACIL Tasman.
More information: For a copy of the report contact the MLA publications hotline 1800 675 717
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