EJPAU 2015. Pospíšil R. THE COSTS RELATED ANALYSIS OF BOVINE SPONGIFORM ENCEPHALOPATHY EVIDENCE

Electronic Journal of Polish Agricultural Universities (EJPAU) founded by all Polish Agriculture Universities presents original papers and review articles relevant to all aspects of agricultural sciences. It is target for persons working both in science and industry,regulatory agencies or teaching in agricultural sector. Covered by IFIS Publishing (Food Science and Technology Abstracts), ELSEVIER Science - Food Science and Technology Program, CAS USA (Chemical Abstracts), CABI Publishing UK and ALPSP (Association of Learned and Professional Society Publisher - full membership). Presented in the Master List of Thomson ISI.

2015
Volume 18
Issue 4

Topic:

Economics

ELECTRONIC
JOURNAL OF
POLISH
AGRICULTURAL
UNIVERSITIES

Pospíšil R. 2015. THE COSTS RELATED ANALYSIS OF BOVINE SPONGIFORM ENCEPHALOPATHY EVIDENCE – THE CZECH REPUBLIC STUDY 2001–2014, EJPAU 18(4), #11.
Available Online: http://www.ejpau.media.pl/volume18/issue4/abs-11.html

THE COSTS RELATED ANALYSIS OF BOVINE SPONGIFORM ENCEPHALOPATHY EVIDENCE – THE CZECH REPUBLIC STUDY 2001–2014

Richard Pospíšil
Department of Applied Economics, Philosophical Faculty, Palacký University of Olomouc, Czech Republic

ABSTRACT

This paper pays attention to analysis of the economic impacts of the bovine spongiform encephalopathy (BSE) occurrence in the Czech Republic, namely the financial compensations to the farmers whose herds had been affected and the costs of animal killing and carcass disposal in the rendering plant. Between February 2001 and the end of 2014, a total of 1 879 749 cows were examined and 30 cases of the BSE were detected. Consequently, 4243 cows in cohorts were killed and their carcasses were safely disposed of. The farmers whose herds had been affected were provided compensations for the losses suffered. The total of the compensations in this period reached EUR 7 752 000. Of these, 83.3% (EUR 6 458 000) were compensations for the value of the killed animals, 9.7% (EUR 752 000) for the related costs, i.e., killing, safe disposal of carcasses and the examination for the BSE, and 6.9% (EUR 535 000) for the losses due to non-materialised production. The average costs per 1 BSE-positive animal were EUR 258 400 and the average costs per 1 cohort animal were EUR 1827. In the rendering plant responsible for killing the infected and cohort animals and safely disposing of their carcasses, the total of 2342 tons of raw material was processed between March 2003 and 2009, and this cost EUR 363 777. The fact that there were only two last cases of the BSE in 2009 suggests a trend towards the disease eradication, which is in agreement with the situation in the other EU countries.

Key words: financial compensation, bovine spongiform encephalopathy (BSE), cattle, infectious diseases, Czech Republic .

Richard Pospíšil
Department of Applied Economics, Philosophical Faculty, Palacký University of Olomouc, Czech Republic
Křížkovského 12
771 80 Olomouc
Czech Republic
email: richard.pospisil@upol.cz

Responses to this article, comments are invited and should be submitted within three months of the publication of the article. If accepted for publication, they will be published in the chapter headed 'Discussions' and hyperlinked to the article.