Economic Analysis Of Animal Diseases Controlling

Animal Health Economics has been developed in EU and USA recently. It is useful for government to make decisions on prevention and control strategy for animal diseases and financial support to animal husbandry. The economic analysis result has been regarded as an important reference for the government gradually. After reviewing the studies on Animal Health Economics in abroad, we think economics analysis on animal diseases controlling may provide financial basis for our government to make decisions, not only on policy of financial support to animal husbandry industry, but also on measures of prevention and control animal diseases. The comparison, between the animal health administration in China and international regulation, can also be set up through economics analysis.During the progress of animal husbandry in China, the situation of prevention and control animal diseases has been always very difficult. The system of controlling and preventing animal diseases was warned by the outbreak and widespread of severe infectious animal diseases, especially HPAI in 2004 and 2005 and FMD in 2005. In order to prevent the widespread of animal diseases, protect the development of husbandry industry, and ensure the health of people, the innovation of administrative framework for controlling and preventing animal diseases has been advanced, national organization set up, regional veterinary administration system established. These organizations and systems have guaranteed the prevention and control animal diseases in our country. However, the deep conflicts between animal diseases preventing system and the husbandry industry development has not been fundamentally solved. And the problem will last for a long yime.Husbandry industry in China has been destroyed severely by animal diseases. For example, the outbreak of HPAI has caused a lot of socio-economics problems. The impact on upstream and downstream industry of poultry sector was serious, the export of poultry product was banned, the farmers' income from breeding poultry decreased, the consumption of poultry declined. Based on the researches of others and the recent situation of poultry sector in China, the loss of total social welfare by HPAI added up to 12.090 billion Yuan.After analyzing the factors affecting the outbreak and spread of HPAI, we found immunity level was the key factor determining the effect of prevention and control HPAI. The optimization of production system, such as extending standard breeding district, also played an important role. The feed quality was closely related to the immunity of poultry. It was also a positive measure to set up natural and manual barrier timely after the outbreak of HPAI.When animal diseases broke out, the strategy of stamping-out the sick and infectious animals was carried out in most of developed countries, while the policy including stamping-out and compulsory vaccination was carried out in the developing countries, for example China. By comparing the number of HPAI infectious poultry in two areas with different breeding scale, it was suggested that the Cover Intensity of vaccination and High Risk Period significantly affected the effect of prevention and control HPAI. The construction of animal disease free zone have gotten remarkable progress, and it has a positive effect on preventing animal diseases, prompting animal product export, bringing along the progress of related industry, and increasing the farmers' income. The direct benefit from the construction was 4.831 billion Yuan discounted at a rate of 10%, and the value of Benefit-Cost Ratio (BCR) was 7.95. The indirect benefit was 3.256 billion Yuan by accelerating the development of logistics, cold storage and service industry.In order to alleviate the shock to national husbandry industry by animal diseases, developed countries often adopt a series of financial support policy, which provide a useful reference to China. With the rapid development of economy and increase of comprehensive national strength, the input continuously increased to construct the organization and system of controlling animal diseases. A Benefit-Cost Analysis (BEA) for the financial investment on the construction (from 2004 to 2008) indicated BCR was from 8.54 to 14.78 each year. The accumulative total Net Present Value (NPV) of stamping-out and vaccination policy for FMD (from 2002 to 2010) was showed to be 1.68 billion Yuan.The policy recommendations proposed in this dissertation include: putting up the research of animal health economics, improving the decision-making support of government; perfecting animal diseases prevention and control system, evaluating the ability to control serious animal diseases' outbreak; pushing health-breeding, transferring the production style of livestock industry; strengthening fundamental vaccination, ensuring the vaccination density and vaccination quality; increasing financial support to animal disease free zone, building animal products export base; using developed countries and areas' experience for reference, strengthening financial support policy on animal diseases prevention and control.