Retrospective Economic Analysis of Foot and Mouth Disease Eradication in the Latin American Beef Sector
2017
Countryman, Amanda M. | Hagerman, Amy D.
Foot‐and‐mouth disease (FMD) damaged Latin America's beef sector through both production losses and limits to international market access in the early to mid‐2000s. Using a base year of 2001, we utilize historical FMD outbreak data and a global economic model to estimate the consequences of FMD on domestic beef production, prices and trade across markets in multiple Latin American countries. Results show that, had FMD been prevented in 2001, Latin America may have benefited from increased access to the world market but relatively small impacts may have occurred on world beef prices. Regional welfare could have improved over observed 2001 market conditions. Regionally, Uruguay may have benefited most if production losses resulting from FMD would have been mitigated. [JEL Classifications: F10; Q11; Q17].
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