COSTS OF A MAEDI VISNA FLOCK CERTIFICATION PROGRAM AND THE CHANGES IN PRODUCTIVITY AND ECONOMIC OUTPUT

 

 

J.W. Fisher, Kemptville College, University of Guelph

Kemptville, Ontario, Canada K0G 1J0

telephone:(613)258‑8336 ext. 447

e‑mail:jfisher@kemptvillec.uoguelph.ca

 

 

P.I. Menzies, Ontario Veterinary College, University of Guelph

Guelph, Ontario, Canada N1G 2W1

telephone:(519)824‑4120 ext. 54043

e‑mail:pmenzies@ovc.uoguelph.ca

 

 

 

 

Summary:

            Maedi Visna (MV) has been identified as a common viral infection in Ontario sheep.  The Maedi Visna Flock Certification Pilot Project attempts to set protocol for control of this disease, including flock eradication.  A static normative model was designed to measure the economic costs of such a program.  Of the 16 producers enrolled on the program in 2002, 15 were surveyed.

            Two benefits were identified from being MV free, better breeding sales and some improvement in ewe productivity.  The benefits to breeding sales warranted eradication within sheep flocks.  With a mere 10% improvement in sales on 25% of lambs sold for breeding stock a producer would expect to breakeven just shortly after becoming ‘A’ Status.  This outcome was robust for all combinations of flock size, ewe and breeding sales values, and bleeding costs.

            Commercial sheep producers did not find the same positive outcome.  With low prevalence of the disease, few benefits accrued.  Only with prevalence over 10% with low bleeding costs and large flocks would commercial producers show a reasonable payback period of about 6 years, and then only with the Monitored Program.  Payback would never be reached on the Whole Flock Program for commercial sheep producers.   

Key Words:   Maedi Visna; Economics; Sheep; Flock Certification Program; Disease

Introduction:

            Maedi Visna (MV) is a common viral infection in Ontario sheep flocks, and has been identified as a significant production‑limiting factor in sheep.  Infected ewes are less likely to lamb, and thus have fewer lambs.   Their lambs are smaller at birth and tend to grow at a slower rate when compared to lambs born to uninfected ewes.   Ewes often lose weight and milk production decreases (Bruere & West, 1993).  This loss of productivity results in a decreased profit for the sheep producer.   The Maedi Visna Flock Certification Program (MVFCP) attempts to identify MV positive sheep and requires their subsequent removal from the flock to decrease the prevalence of MV. 

            The purpose of removing all MV positive individuals from the flock is to eradicate this disease in Ontario sheep and to certify farms as MV ‘free’. There is no known cure for this disease and so disposal is the only solution.  Obviously, there are considerable costs attached in making the decision to remove all sero‑positive sheep.  Costs will include depreciation on sheep that are culled, isolation facility costs and costs associated with the testing process.  Other more indirect costs might include keeping track of and facilitating the process of testing.

            Productivity losses due to MV are especially important to commercial sheep producers, who rely on the weight, quantity and quality of their animals to turn a profit.  For sheep breeders, more important is the simple ability to state that their sheep are MV ‘free’.  Being MV free may result in an improvement of breeding sales, particularly if their customers understand the importance of a good health management process.

            In addition to these expenses, there are also various expenditures associated with enrolling in the program.  These include ear tags, isolation facilities, veterinary supplies, laboratory charges, paid labour and various equipment fees, among others.  This project will attempt to quantify the costs associated with a MV eradication and certification program.

            The main objective of this project is to quantify the costs associated with a Maedi Visna Flock Certification Program (MVFCP).  In addition, an attempt will be made to determine the conditions under which this program will provide net economic benefits for different sectors of the sheep industry.

Review of the Literature:

            Although considerable work has been done with respect to Maedi Visna control programs, there is very little research concerning their economic consequences.  The costs and benefits of a disease eradication program have a direct influence on whether the program will be implemented and followed by producers.  However, there is seldom a report concerning Maedi Visna that does not acknowledge the fact that it has important financial implications (Houwers et al, 1984; Sihvonen et al, 2000; Varea et al, 2001).

            Fortunately, there is a growing field of research, animal health economics that evaluates the economic losses due to disease and the expenses that accompany an eradication program.  Research in this area is not only concerned with specific medical conditions in livestock, but also concentrates on developing general guidelines for evaluating the costs of disease and disease control.  This is particularly useful since the costs of disease vary with the type of disease and the type of control program used (Putt et al, 1988). 

            Davies (1980) recognizes four significant elements that contribute to the costs of a disease eradication program.  The first variable that must be taken into consideration is the amount of disease present in the flock.  It is reasonable to state that as the prevalence of disease in the flock increases, the costs associated with eliminating the disease will also increase.  Secondly, the value of the stock is determined by the value of the animal with the MV virus, the cost of culling the animal, and the loss of farm income due to time spent on eradication procedures.  A third important factor is the effect of the disease on trade, which is of particular importance to sheep breeders.   Finally, the cost of serological testing procedures can be measured via the cost of collecting blood samples, the cost of laboratory testing, and the time scale of the eradication program.

            This last variable is often neglected in the literature, but it is of great importance.  Although a minimum of four years is required for a flock to become MV free, more time is needed to ensure complete disease eradication (Houwers et al, 1984).  The additional costs of maintaining the program, even after an apparent elimination of the disease from the flock, must be taken into consideration. 

            Putt et al (1988) distinguish between non‑medicinal prevention and medicinal measures when proposing a method to evaluate the costs of a disease control program.  Non‑medicinal prevention includes factors such as the producer’s time spent with the flock for disease control purposes or the construction of new buildings, specifically assembled for the disease eradication program.  In comparison, medicinal measures include the identification of the disease through diagnosis and surveys followed by the treatment of the disease.  Costs of treatment are a function of the reported incidence and severity of the disease (Wesley, 1987).  For the MV virus, the only current treatment is to cull all infected sheep (Houwers et al, 1984) and to remove lambs born to infected ewes immediately upon birth (Bruère & West, 1993).  Therefore, culling of all affected sheep can also be classified as the treatment of the disease.  Preventive measures such as culling are generally seen as quite costly, but necessary (Horst, 1998; Lassauzet et al, 1991; Wesley, 1987).

            Overall, there is a great deal of repetition in the literature regarding those variables that contribute to the costs of a disease eradication program.  As the current veterinary services to individual farms are changing from the traditional ‘first‑aid’ practices to planned prevention and control programs, the role of the veterinarian is becoming increasingly important (Dijkhuizen et al, 1991).  As such, veterinary fees must be accounted for when estimating the costs of a disease eradication program.  Labour performed by the farm operator and other staff, including those involved in administrative duties, must be accounted for when considering the costs associated with a disease control program (Berger, 1980; Caporale et al, 1980; deGraaf et al, 1999; Putt et al, 1988; Renkema, 1980).  In addition, various medical equipment, such as syringes, needles and/or vials contribute to the costs of the control program (Caporale et al, 1980; Paniagua Arellano & Diaz Yubero, 1980; Putt et all, 1988).

            Lee (1981) refers to certain indirect costs, such as training and education of farmers.  Although these expenses were not included in the economic evaluation of the disease in Lee’s research (due to a lack of information), their importance was noted.  Having a solid understanding of the disease that is being dealt with is essential for a farmer, and costs due to education are often incurred.  

            Of course, there are several benefits that accompany a disease eradication program.  With a control program in place, there will be increases in the production of meat, milk and wool, a rise in birth rates and an improvement in breeding sales (Oluokun, 1980; Paniagua Arellano & Diaz Yubero, 1980).  Any constraints that the disease imposed on the flock, such as limited productivity, will be lifted once the disease is eradicated.  Benefits such as these are generally referred to as ‘indirect benefits’ (Putt et al, 1988).

             As is the case with almost any disease, the profitability of a sheep flock is limited by the presence of Maedi Visna.  Infected ewes are only two thirds as likely to lamb as uninfected ewes, and infected ewes have 0.13 fewer lambs born per ewe exposed to the ram.  Thus, the first main effect of the Maedi Visna virus (MVv) is that it causes a reproductive loss to the sheep producer (.  In contrast, Dohoo et al (1987) found that although MV significantly decreases conception rates, it has no effect on lambing rates.

             Second, since lambs born to infected ewes weigh 0.16 kg less at birth than lambs born to uninfected ewes, there is a serious effect of the disease on the birth weight of lambs (.  Similar results were found by Keen et al (1997), who reported that lambs reared by MV positive ewes weighed 0.15 kg less at birth.

            A third major effect of MV is its influence on lamb growth.  Keen et al (1997) report that a single lamb nursing an infected ewe will weigh 0.59 kg less at 56 day weaning than a lamb nursing an uninfected ewe.  Menzies (internet resource) reports that twin lambs nursing infected ewes will each weigh 1.03 kg less at 60 days than twin lambs nursing an uninfected ewe.  Finally, infected ewes will wean 11.0 pounds less lamb per ewe exposed to the ram.  This loss of profitability contributes to the cost of the disease.  Once a disease eradication program is put into effect, the constraints of the disease will be lifted, and there will be many visible benefits. 

            The literature seems to be somewhat divisive on the amount of economic losses due to this disease.  Identification of a mere 11 pounds of lamb per year lost to a sero‑positive ewe certainly is not enough to warrant eradication programs.  Vilmos (1996) concluded based on histopathological changes in 50% of culled ewes in his study, that Maedi Visna is one of the most frequent causes of diminished life production and thus it causes significant economic losses.

            There is a great deal of literature dedicated to helping individuals in making decisions regarding livestock management, particularly under conditions where disease is present.  The decision process usually pertains to evaluating various disease control policies and incorporates their economic aspects. 

            Dijkhuizen at al (1991) and Renkema (1980) refer to positive and normative approaches when dealing with the costs of a disease control program.  A positive approach will evaluate the field data directly, using statistical/epidemiological models.  In contrast, the normative approach makes predictions based on existing knowledge.  Results are generated by the method of system modeling, enabling a simulation of the effects of various management decisions and control strategies.  The data used in the normative approach may be derived from field data.  Since the field experiments used in the positive approach are costly and often interfere with the implemented program, a normative procedure may be the best route to take.  Bennett (1992b) highlights the benefits of using such a simulation approach; it is not necessary to experiment with the system itself, but only a model of the system.  The aim of the simulation is to see ‘what happens’ under a number of different circumstances or assumptions.

            Bennett (1992b) refers to a 1988 study by Davis, in which the steps to constructing a quantitative model to aid decision-making are discussed.  The first step involves developing a model to help visualize the problem.  The second step is to apply a mathematical formulation to this model, or at least to the areas which need to be quantified.  Finally, the appropriate quantitative techniques must be chosen, which can then be applied to the mathematical formulations.  In a disease eradication program, mathematical formulations could be applied to a model of the control strategies.  By doing this, costs and benefits associated with progressing toward disease ‘free’ status could be generated.

            Bennett (1992a) describes the construction and possible uses of a simple decision support system.  In order to assess the economic effects of a disease and its eradication program adequately, a model should be constructed that allows one to produce ‘best’ and ‘worst’ case scenarios, or any other scenario required by the analyst.  The purpose of this model is not only to estimate the costs and benefits of the disease eradication program, but also to predict what will occur when estimates and values of different parameters are altered and to investigate various ‘what if’ questions.  It is particularly useful if this model can be modified to specific farm situations, for example, the size of flock or value of livestock.  It should be possible for the data to be entered into the model with relative ease, and the changes due to any adjustments should be seen immediately. 

            In Bennett’s (1992a) model, three different options for disease control are evaluated: ‘Do nothing’, "Vaccinate’, and ‘Test and cull’ (the model pertains to the Bovine Pestivirus Syndrome, or BPS).  By comparing the costs of different control strategies, it is easy for the farmer to make wise decisions concerning the health of the flock. 

            Putt et al (1988) further break down types of models into dynamic versus static and deterministic versus stochastic.  While static models often deal with the average of a set of values once a system has reached equilibrium, dynamic models take into account daily values over a certain period of time.  In contrast, a deterministic model describes the situation which would arise if all the variables had average values, while a stochastic model allows the variables to take values from a range of values according to some probability distribution.  In the case of Maedi Visna, a static model may be the best way to measure the costs of an eradication program, since it is assumed that flock size does not fluctuate over time for each scenario. 

            In addition, there are some extremely basic models discussed in the literature.  In research by Oluokun (1980), a flow chart illustrates a simple economic evaluation of a disease control program.  The total cost of a disease eradication program, such as the Maedi Visna flock certification program, will equal the costs of controlling the disease in addition to the benefits from eliminating the disease.

            There are considerable costs associated with disease control programs, but these costs are necessary in order to reap the benefits of having a disease free flock.  It is generally found that although most disease eradication programs are quite costly, especially in their early years, the benefits outweigh the costs by the time that the program is completed (Davies, 1980; Polydorou, 1982; Putt et al, 1988).   This is particularly true concerning the Maedi Visna flock certification program, in which culling of sero‑positive sheep is the only way to eliminate the disease. 

            McInerney (1996) defined the responsibility of economists in the question of disease control as those who will help set the boundary to controls.  Some systemic diseases (for example mastitis) may optimally exist at some level if we consider the balance between control costs and controllable losses due to the disease.  Where a disease is not systemic and can be controlled only by eradication, such as with Maedi Visna, then the optimal level will exist (if the losses are great enough) or it will not exist at all for that particular economic environment.

            Taken directly from McInerney, figure 1 shows a hypothetical efficiency frontier for a disease, below which is impossible to achieve.  The y‑axis represents production losses due to the disease which includes loss of productivity, death loss, loss of markets, etc..  The x‑axis represents expenses to control and fight the disease, such as veterinary services, medicines, Flock Health Level I expenses, etc. When eradication is necessary, the efficiency frontier L’L" will intersect the x‑axis.  Maedi Visna is such a disease.  Isocost lines must be by definition a 45° angle to the x‑axis and represent combinations of equal cost to the disease if we accept the basic premise that the cost of the disease is equal to the losses plus the control expenditures.  McInerney argues that the optimal disease level is seldom at zero.  The isocost line that is tangent to the efficiency frontier defines the optimal level of disease loss and control expenditure, at M. 

            With Maedi Visna at the farm level, there is no middle ground.  Either the producer eradicates the disease with all the requirements of the program or simply tries to minimize the chances of having lots of the disease by careful purchasing of replacement animals and culling of suspect animals.  In this study we will attempt to demonstrate this concept given commercial and breeding enterprises.

Materials and Methods:      

            The original protocol for this study involved each participant returning annual business reports for analysis.  Due to the low numbers enrolled in the program, a static normative model of the MVFCP was designed.   Phone interviews were conducted in order to collect data and this information was entered into the model.  The model reported the costs of participation in the project.  Written feedback was given to the participants shortly after the phone interview took place.  Each participant was sent a schematic of the MVFCP, copies of the Whole Flock and Monitored flock programs pertaining to their individual situation, and a letter explaining the two programs.  Participants were invited to contact the researcher if they had any questions or comments.  This served as a beta test for the model.

            Because the average results of the 16 participants in the program were not of particular significance to anyone, they were merely summarized.  Of more importance is the effect of certain flock characteristics on the economics of the program.   A flock size of 100 and 500 breeding ewes was stated and then scenarios were proposed.   The scenarios had different variables, such as the type of sales (commercial or breeding stock), type of program (Whole Flock versus monitored), observed increase in breeding sales and value of sales, value of ewes, bleeding costs, labour costs, prevalence of the disease, and the occurrence of positive tests later in the process.  The dependant variables observed included cost to reach ‘A’ Status and how long it would take to breakeven.

 

Results and Discussion:

            The computer model was programmed in Lotus 123 Release 5.  The models are fairly straight‑forward, accounting for cycles involved in the program protocols (see Appendix I for a copy of the models).  The simplicity of the models can be largely attributed to the assumption that producers were at a Level I health status1 prior to enrolling on the Maedi Visna Flock Certification Pilot Project (MVFCP).  By doing this we have removed many complicating issues for comparing productivity gains due to this program.  Indeed, part of the research protocol was that participants must be on the Ontario Sheep Health Program which ensures they were at Level I health status.  Therefore, just the costs of Maedi Visna testing and the benefits from this testing need be modeled. 

            Fifteen producers enrolled in the MVFCP were telephone surveyed using the model.  Twelve producers were breeding flocks enrolled in the Whole Flock Program, one breeder was on the Monitored Program, and two commercial producers were on the Whole Flock Program.  Table 1 displays the average of all farms on the Whole Flock program (other summaries are not shown due to the small data set).  All of these producers sold breeding stock.

            On average, producers enrolled on the Whole Flock Program had 149 ewes.  Some expenses were invested in isolation facilities, although these were not elaborate.  Double ear tags were required, so one additional tag per animal was accounted for.  Participants were required to register in the OSHP, which costs $75, and most partook in some sort of education program concerning flock health or Maedi Visna specifically. 

            Bleeding charges included laboratory fees, veterinary services and labour.  Laboratory fees range from zero for the general population, $2.50 per test if enrolled in the MVFHP, to $8.50 which is the cost recovery rate proposed by the Canadian Food Inspection Agency.  Veterinary services range at about $3.33 per sheep, which is a flow rate of about 30 sheep per hour.  Enough help is needed to assure this flow rate.  Operator labour was charged at $1.05, hired labour at $0.17 and labour to keep necessary records at $0.75 per test.  Table 1 shows veterinary services and labour at less than these rates because some bleeding was done by the research team at no charge.  Isolation labour was $13.33 per ewe put in isolation. 

            The value of breeding ewes was $374 and these were depreciated over 6.75 years.  The average cull value was $69.  The average age at culling was 3.8 years.  Positive tests where ewes were culled cost the producer the remaining depreciation between 3.8 and 6.75 years (straight line depreciation).

            Benefits from Maedi Visna eradication can be two fold, a productivity increase or an improvement in breeding sales from displaying a Maedi Visna free status.  The literature states a commercial benefit of 11 pounds of lamb per infected ewe. (In the author’s opinion, this may underestimate the impact of Maedi Visna on the productivity of a flock).  Breeders who advertise various flock health credentials, find it easier to sell stock to shepherds.  Those surveyed sold 26% of their stock as breeding stock and estimated an improvement of 11% in breeding sales.  This improvement in breeding sales could be price or quantity.

            The results of this group of producers, with an average of 7.25 positives on the first test and 5.83 culls were costs of $5,207 to become ‘A’ Status, on average.  By this time benefits of $14,851 had accrued.  This group would break even 1.5 years before becoming ‘A’ Status.  Also this group would have taken five years to become ‘A’ Status.  The majority of the benefits come from improvement in breeding sales.  In fact only a 3.7% improvement in breeding sales (on 26% of lambs being sold for breeding stock) is needed to breakeven by the time ‘A’ Status is achieved.

            The variables of importance to the economic success of the MVFCP program appear to be flock size (because the random sample size becomes relatively smaller as flock size increases, see appendix II), bleeding costs, ewe value and breeding sales value.  To summarize the effects of these variables on the costs/benefit of the MVFCP, scenarios are presented for four groups of producers; breeder and commercial producers in either the Whole Flock Program or the Monitored Program.  The standard scenario includes isolation facilities at $125, ear tags at $0.36, OSHP at $75, education at $150, salvage at $69, isolation labour at $13.33 per animal, age at 3.8 years, 6.75 years of use for ewes, 11 pounds in added productivity, 10% improvement in breeding sales, 2 lambs per ewe per year, 25% of sales as breeding, and commercial sales at $100.   

            Bleeding costs were varied between $4.50 and $15.00 per test while ewe value was varied between $200 and $600 per ewe.  Direct bleeding costs consisted of six items, lab charges, vet supplies, and labour for record keeping, help, operator and veterinarian.  It doesn’t matter how the cost of each of these are distributed.  Also, to reflect the value of ewes as this affects the value of her lambs, the value of breeding sales were set to be the same as the ewe value, so these two variables act together.  Breakeven (years) shows how long it will take for the producer to cover the direct expenditures with reduced loses (the x and y‑axis in figure 1) (see footnote 1). 

            Breeding flocks with 100 ewes and 500 ewes on the Whole Flock Program are evaluated in Table 2.  All scenarios had very early payback periods of either just before becoming ‘A’ Status or just shortly after.  With 500flock size, there is a slight improvement in all payback periods, however small.  This has implications for sheep breeders in Ontario, because most breeding flocks in Ontario tend to be smaller (i.e. less than 100 ewes).  Neither of higher bleeding costs, the prevalence of sero‑positive animals, lower ewe/lamb value, nor smaller flock size seems to impede the financial success of this program for breeding flocks.

            Breeding flocks enrolled in the Monitored Program (Table 3) again show very encouraging payback periods.  Certainly the Monitored Program is cheaper because it uses random samples, however it takes one additional test.  The status is not as good, and with smaller flocks, the random sample number is relatively large compared to the flock size.  So cost savings between the Whole Flock and the Monitored Programs are minimal, particularly in smaller flocks.

            Commercial flocks in contrast, never have the opportunity to breakeven given the standard scenario presented.  The annual cost of testing is always greater than disease losses with the Whole Flock Program (Table 4).  This is because without the prevalence of the disease in a flock, there is no benefit seen after testing.  It appears that those who should test are those who suspect they have high prevalence of Maedi Visna in their flocks.

            Commercial flocks of any size had no chance of payback in the Monitored Program given the representative data (Table 4).   However, commercial operations would breakeven when prevalence is greater than 3.6 percent with large flocks (500 ewes) and low bleeding costs, in 308 years.  At a 10% prevalence the payback is in 5.9 years after becoming ‘B’ Status.  The implications for the Ontario commercial sheep industry is, if prevalence is expected to be low, then the program will not pay.  If prevalence over at least 10% is suspected, then the program has potential to pay.

            Efficiency frontiers for Maedi Visna control on Ontario farms are difficult to identify.  This program does however identify the production losses (y‑axis) and the expenditures (x‑axis) for efficiency frontiers given specific farms (or scenarios).  Remember with eradication, the efficiency frontier intersects the x‑axis.  What the curve looks like between these two points is undetermined.  Also, each farm is different (breeders versus commercial operations) and the frontier will change daily as prices and input costs change over time.  For example,

1.         Breeding operations on the Whole Flock program show potential losses of $13,500 and expenditures of $1,930 to become ‘A’ Status (100 ewes with value on ewes/sales at $600), figure 2.  This has an average slope of ‑7 which is less than an isocost’s slope of ‑1 (45° angle).  As long as the curve of the efficiency frontier L’L" touches the isocost Cm at the x‑axis intercept, then the point of the x‑axis intercept is the optimal control point for this farm.  And as such this demonstrates that eradication is the most economical option in this case, point m in figure 2.

2.         However, a commercial operator with 500 ewes, low bleeding costs and 10% prevalence would save production losses of $1,100 and incur control expenditures costs of $3,209 to achieve a ‘ B’ Status, figure 3.  This is the scenario where breakeven will occur in another 5.9 years after becoming a ‘B’ Status (taking four years). Over the next 5.9 years the efficiency frontier #1 for this producer is shifting to the northeast until it’s slope, frontiers #2 and #3 become equal to ‑1.   The frontier shifts because the annual costs of testing is less than the annual benefits after the first year or so when all sero‑postitive animals are disposed of.  Eventually the frontier will be above an isocost where again, the optimal point will be at the x‑axis intercept (as is the case in figure 2).

3.         Also for a commercial operator (figure 4) on the Whole Flock Program (100 ewes, low bleeding costs and 10% prevalence) the savings from production losses would be $275 and control expenditures would be $2,824 with no potential to breakeven.  This is because the annual costs exceed the annual returns as time goes on.   The efficiency frontier J’J" has a slope that is more than ‑0.1 and will never shift lower than a slope of ‑1.  Therefore the isocost Cx will intersect the efficiency frontier J’J" at an optimal point Y, that does not represent eradication.   Actually, point Y is very close to the y‑axis intercept, suggesting that very little control expenditure is economically warranted in Maedi Visna control, for this scenario.  The implication is that commercial producers with low prevalence should practice selective culling and good bio‑security and not enroll in the MVFCP.

            This analysis varies slightly from that of McInerney and that of Chi, in that the costs of this disease (production losses plus control expenditures) will not have a particular time frame.  A minimum of four years is needed to gain ‘A’ Status, three years for a Monitored ‘B’ Status and breakeven can happen over any number of years thereafter.  And so the efficiency frontiers presented are quite mobile in time.  Their tendency to shift around should not effect their use to explain the concept of optimal disease control.

            Maedi Visna testing involves a few other issues that may not have been accounted for as yet in this analysis.  Depending on the organization of the farm, pre‑bleeding assembly of animals may be easy or arduous.  Meticulous record keeping needs to be done and strict bio‑security measures followed.  Much effort, time and organization goes with the program.  And then the outside risk that once ‘A’ Status has been achieved, at some point in the future, there may turn up a positive test.  The dollar cost of this one positive test would be that a whole flock test would need to be done the next time and you would cull the culprit.  However, because you would loose your ‘A’ Status, you would need to remove this designation from your promotion, which may cost you breeding sales.  The implication of this one positive test could be relatively large.

Conclusions:

            The Maedi Visna Flock Certification Pilot Program assumes that producers will enroll in the Ontario Sheep Health Program, educate themselves about controlling disease, test their sheep on a regular basis, cull all sero‑positive animals, and practice at Level I flock health management, including bio‑security measures.  Without this type of protocol, the eradication program will not work.  Also, eradication seems to be the only measure to control the disease.  And the two benefits of this program have been identified as a savings of 11 pounds of lamb per year per infected ewe, and for breeders a more significant bonus of improved sales if displaying a certified status.

            Within these parameters, there seems to be a good economic return for breeders in Ontario.  These farms need not be large.  The costs of bleeding can reach $15.00 per test and remain optimal.  Only a portion of lambs need to be sold as breeding stock.  We used 25% of sales achieving a 10% improvement in price, which is quite modest.  Breakeven occurred just before or shortly after becoming ‘ A’ Status for all combinations of flock size, ewe and breeding sale values, and bleeding costs. 

            Commercial producers on the other hand have a conundrum.  If they don’t have the disease, they will have no benefit to being on the program.  At levels above 10% prevalence, with low bleeding costs, commercial producers on the Monitored Program begin to show a reasonable payback of about 6 years.  Some protocols need to be adjusted to encourage more participation from commercial producers.

            More research is needed in the assessment of production losses due to this disease.  The commercial loss of 11 pounds per ewe per year is not enough to warrant eradication or alarm around this disease.  In many countries Maedi Visna is a reportable disease, some national eradication programs have occurred over the years, all which suggests that this disease is more destructive than stated in the literature.

Literature Cited:

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2.      Berger, R.  (1980).  Costs of control of animal diseases in Finland.  In Animal Health and Economics: Technical Series No3.  (pp.  43‑46).  Paris, France: Office International des Épizooties. 

3.      Chi, J., et al. (2001).  The Economics of Controlling Infectious Diseases on Dairy Farms.  Working Paper 02/03.  view.pl?paperid=4022&ftype=.pdf

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5.      Davies, G.  (1980).  The costs of benefits of eradication Enzootic Bovine Leucosis from Great Britain.  In Animal Health and Economics: Technical Series No3.  (pp.  19‑23).  Paris, France: Office International des Épizooties.             

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8.      Horst, H.S.  (1998).  Risk and economic consequences of contagious animal disease introduction.  Wageningen, The Netherlands: Mansholt Institute.

9.      Houwers, D.J., et al. (1984).  Maedi‑visna control in sheep II:Half‑       yearly serological testing with culling of positive ewes and progeny.  Veterinary Microbiology, 9, 445‑451.    

10.  Lassauzet, M‑L., et al.  (1991).  Factors associated with transmission of bovine leukemia virus by contact in cows on a california dairy.  American Journal of Epidemiology, 133(2), 164‑176. 

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            1Level I Health Status can be described as ‘best management practices for producing sheep, including nutrition, facilities, records, medicines and health procedures’.  For a complete description reference Menzies P.I., Fisher J.W., Economics of Flock Health Management.  2001.