BOVINE SPONGIFORM BOVINE SPONGIFORM ENCEPHALOPATHY (BSE) or “Mad ENCEPHALOPATHY (BSE) or “Mad Cow Disease”: Cause and effect Cow Disease”: Cause and effect

on the beef market.on the beef market.

Name: Odette K Name: Odette K BusambwaBusambwa

IntroductionIntroduction

• The BSE is a disease of an adult cattle The BSE is a disease of an adult cattle affecting the central nervous central. The affecting the central nervous central. The affected cattle progressive behavior changes, affected cattle progressive behavior changes, abnormal posture, incoordination, reduced abnormal posture, incoordination, reduced milk production and weigh lost (Mad Cow milk production and weigh lost (Mad Cow Disease, information page).Disease, information page).

• The BSE was for the first time The BSE was for the first time diagnosed in the United states in December diagnosed in the United states in December 23, 2003 (USDA-APHIS,2003).The disease 23, 2003 (USDA-APHIS,2003).The disease was first diagnosed in Great Britain in the was first diagnosed in Great Britain in the 1986.1986.

cowcow

IntroductionIntroduction

• After the outbreak in British cattle, After the outbreak in British cattle, the epidemic peaked in the 1993 at 1000 the epidemic peaked in the 1993 at 1000 cases per week. BSE has been diagnosed cases per week. BSE has been diagnosed in cattle in several European nations, in cattle in several European nations, Japan, Israel and Canada (NU institution of Japan, Israel and Canada (NU institution of agriculture and natural resource, 2004). agriculture and natural resource, 2004). The cattle diagnosed with BSE in the The cattle diagnosed with BSE in the United States was imported from Canada United States was imported from Canada as an adult (USDA-APHIS,2003).as an adult (USDA-APHIS,2003).

IntroductionIntroduction

• The risk to human health is The risk to human health is miniscule. However, BSE can be transmitted miniscule. However, BSE can be transmitted to humans through the consumption of to humans through the consumption of infected tissues and transmission from infected tissues and transmission from animal to animal is unlikely to occur (NU animal to animal is unlikely to occur (NU institute of Agriculture and natural institute of Agriculture and natural resource, 2004).resource, 2004).

• Occurrence of BSE has caused Occurrence of BSE has caused great fluctuation in production and great fluctuation in production and consumption of beef. The disease had consumption of beef. The disease had significant effect on trade and price of significant effect on trade and price of cattle and beef (Kenneth et al, 2001).cattle and beef (Kenneth et al, 2001).

CauseCause

BSE is one of a family of similar BSE is one of a family of similar diseases known as transmissible diseases known as transmissible spongiform encephalopaties (TSE) spongiform encephalopaties (TSE) (USDA-APHIS,2003).(USDA-APHIS,2003).

The cause of the disease is not known The cause of the disease is not known for sure, but a leading theory is that the for sure, but a leading theory is that the disease is transmitted by ingestion of an disease is transmitted by ingestion of an infectious prion protein (Jin et al ,2004).infectious prion protein (Jin et al ,2004).

CAUSECAUSE

The affected cattle were connected to a The affected cattle were connected to a common source of feed contaminated with common source of feed contaminated with the infectious prion protein of the infectious prion protein of contaminated feed products (NU Institute contaminated feed products (NU Institute of Agriculture and Natural resource,2004).of Agriculture and Natural resource,2004).

In 1996 a possible link was proposed In 1996 a possible link was proposed between BSE and a disease of human between BSE and a disease of human which was a variant form of CJD which was a variant form of CJD (Crentzfeldt-Jacob disease), a fatal form of (Crentzfeldt-Jacob disease), a fatal form of TSE in man, recently observed in Britain.TSE in man, recently observed in Britain.

CauseCause

This link which was likely to happen, This link which was likely to happen, between vCJD and consumption of between vCJD and consumption of BSE-contaminated the beef industry BSE-contaminated the beef industry was very devastating to beef was very devastating to beef industry (NU institute of Agriculture industry (NU institute of Agriculture and natural resource,2004).and natural resource,2004).

Effect on the beef marketEffect on the beef market

The BSE has an effect on The BSE has an effect on agriculture effect in agriculture effect in various countries around various countries around the world( GREEN,2003).the world( GREEN,2003).

The economic effect of the The economic effect of the outbreak involve (Henson outbreak involve (Henson & Mazzocchi,2004):& Mazzocchi,2004):

*cattle producers*cattle producers *crop producers. *crop producers.

(devaluation of (devaluation of pastureland and hayland).pastureland and hayland).

*Agribusiness.*Agribusiness. Agribusiness includes:Agribusiness includes: +Institution (banks, +Institution (banks,

farm...).farm...). +consumer demand for +consumer demand for

beef.beef. +consumer perception of +consumer perception of

the relative safeness of the relative safeness of beef.beef.

+beef export (lost exports +beef export (lost exports on the US beef prices).on the US beef prices).

+Live cattle future +Live cattle future prices, cash beef prices.prices, cash beef prices.

Effect on the beef marketEffect on the beef market

Reduction of cattle feeders marketing Reduction of cattle feeders marketing for cattle and reduction of slaughter for cattle and reduction of slaughter cattle due to the high prices.cattle due to the high prices.

In international market, it may take In international market, it may take years for exports relations to return to years for exports relations to return to early levels and needs (US, Japan and early levels and needs (US, Japan and South Korea) (Kenneth et al,2001).South Korea) (Kenneth et al,2001).

Effect on the beef marketEffect on the beef market

Adjustment for change in products Adjustment for change in products eligible for trade by the cattle sector eligible for trade by the cattle sector (Kenneth et al,2001).(Kenneth et al,2001).

These changes are far from cost free These changes are far from cost free and reaching implication for many and reaching implication for many products, industries and sectors products, industries and sectors (Kenneth et al, 2001).(Kenneth et al, 2001).

ConclusionConclusionThe degree of influence of each factor on the beef The degree of influence of each factor on the beef

market remains unclear.market remains unclear.A single ,isolated case of BSE may reduce A single ,isolated case of BSE may reduce

domestic consumption by 5-10%(USDA-domestic consumption by 5-10%(USDA-APHAS,2003).APHAS,2003).

This decline could potentially reduce the domestic This decline could potentially reduce the domestic price of slaughter cattle by 13.5% and the price of price of slaughter cattle by 13.5% and the price of feeder cattle by 16% (USDA-APHIS,2003)feeder cattle by 16% (USDA-APHIS,2003)

Reduction and discontinuation of the international Reduction and discontinuation of the international beef trade: case of the Japanese experience beef trade: case of the Japanese experience (USDA-APHIS,2003).(USDA-APHIS,2003).

TableTable

• The following table gives some The following table gives some scenarios of effects of decreased scenarios of effects of decreased beef demand on Farm-level, prices beef demand on Farm-level, prices and supply quantity.and supply quantity.

ScenariosScenariosPrice of Price of slaughter slaughter cattlecattle

Quantity Quantity of of slaughteslaughter cattler cattle

Price of Price of feeder cattlefeeder cattle

Quantity Quantity of feeder of feeder cattlecattle

Producer Producer suppliessupplies

Demand Demand decreasedecrease

Exports Exports decreasdecreasee

Base price Base price $67.14$67.14

35.835.8 Base Base price$80.07price$80.07

32.732.7 Base price Base price $22,974.00$22,974.00

5%5%50%50% $61.63$61.63 36.636.6 $72.05$72.05 32.732.7 $21,562.00$21,562.00

75%75% $59.99$59.99 36.936.9 $69.96$69.96 32.732.7 $21,137.00$21,137.00

100%100% $58.34$58.34 37.137.1 $67.66$67.66 32.732.7 $20,706.00$20,706.00

10%10%50%50% $59.64$59.64 36.936.9 $69.46$69.46 32.732.7 $21,045.00$21,045.00

75%75% $58.05$58.05 37.237.2 $67.26$67.26 32.732.7 $20,630.00$20,630.00

100%100% $56.46$56.46 37.437.4 $65.05$65.05 32.732.7 $20,210.00$20,210.00

15%15%50%50% $57.99$57.99 37.237.2 $66.89$66.89 32.732.7 $20,561.00$20,561.00

75%75% $56.26$56.26 37.537.5 $64.77$64.77 32.732.7 $20,156.00$20,156.00

100%100% $54.71$54.71 37.737.7 $62.65$62.65 32.732.7 $19,745.00$19,745.00

CONCLUSIONCONCLUSION

Speaking in terms of public health, in order Speaking in terms of public health, in order to prevent BSE occurrence, and ensure the to prevent BSE occurrence, and ensure the safety of humans and animals, efforts need safety of humans and animals, efforts need to be undertaken at all levels (Mijic, P. et to be undertaken at all levels (Mijic, P. et al,2005).al,2005).

Responsible state institutions should Responsible state institutions should implement effective measures to maintain implement effective measures to maintain consumers’ trust and avoid possible consumers’ trust and avoid possible economic losses caused by the outbreak economic losses caused by the outbreak abroad (Mijic, P. et al,2005).abroad (Mijic, P. et al,2005).

CITATIONCITATION

• Green , P. (2003, Dec.). Canadian Green , P. (2003, Dec.). Canadian animal. animal. Health coalitionHealth coalition..

• Jin, H J., Skripnitchenko, A. (2004). Jin, H J., Skripnitchenko, A. (2004). The effectsThe effects of the BSE outbreak in of the BSE outbreak in the US on the beef and cattle the US on the beef and cattle industry.: W.W. Koo (ed).industry.: W.W. Koo (ed).

CITATIONCITATION

• Kenneth, M., Perry, J.( 2003, Jan.). The Kenneth, M., Perry, J.( 2003, Jan.). The economic consequence of BSE & Food and economic consequence of BSE & Food and Mouth Disease outbreak in the US. Mouth Disease outbreak in the US. Department of Agriculture, A26.Department of Agriculture, A26.

• Mad Cow Disease. Information page. Mad Cow Disease. Information page. (2004, may 01).Retrieved 11 Nov. (2004, may 01).Retrieved 11 Nov. 2003,from 2003,from http://ianrhome.unl.ed/inthernews/bse.shthttp://ianrhome.unl.ed/inthernews/bse.shtml.ml.

citationcitation

• Mijic, P., Tolusic, Z. ,Rimac, D. (2005, 24-27 Mijic, P., Tolusic, Z. ,Rimac, D. (2005, 24-27 Aug.). Effect of bovine spongiform Aug.). Effect of bovine spongiform encephalopathy on consumption and beef encephalopathy on consumption and beef meat market in Croatia. meat market in Croatia. University of Josip University of Josip Juraj Strossmayer in Osijek, CroatiaJuraj Strossmayer in Osijek, Croatia..

• NU Institute of Agriculture and Natural NU Institute of Agriculture and Natural Resource.( 2004, May 01). Domestic Resource.( 2004, May 01). Domestic demand helps beef industry through demand helps beef industry through uncertain time. Retrieved 11 Nov.2006, uncertain time. Retrieved 11 Nov.2006, from from http://ianrnews.unl.ed/static/0405010.shtml.http://ianrnews.unl.ed/static/0405010.shtml.

CitationCitation

• USDA-APHIS. ( 2003, Dec.23). Mad USDA-APHIS. ( 2003, Dec.23). Mad cow disease. Retrieved 11 Nov. 2006, cow disease. Retrieved 11 Nov. 2006, from from http://ianrhome.unl.ed/inthernews/bshttp://ianrhome.unl.ed/inthernews/bse.shtml.e.shtml.