Financial Impact of Foot and Mouth Disease on Large Ruminant Smallholder Farmers in the Greater Mekong Subregion

A retrospective investigation of financial losses incurred by large ruminant smallholder farmers due to outbreaks of foot and mouth disease (FMD) in 2010-12 in northern Laos was conducted in 2012. The aim was to support recommendations on sustainable transboundary animal disease control strategies in the Greater Mekong Subregion (GMS). Large ruminant smallholders in the three northern provinces of Luang Prabang (LPB), Xiengkhoung (XK) and Xayyabouli (XYL) were interviewed (n=310). Financial losses were determined, including direct losses due to mortality (100% of pre-FMD sale value) and morbidity (difference between the expected sale price pre-FMD and 1month following onset of FMD), and indirect losses due to costs of treatments. The losses due to FMD per household varied between provinces (P<0.001) and were USD 1124, USD 862 and USD 381 in LPB, XK and XYL, respectively, being 60, 40 and 16% of annual household income. Comparison of the costs of FMD with annual household income from sales of large ruminants indicated losses of 213, 181 and 60% of the income in LPB, XK and XYL, respectively. The variation in losses between provinces was due to differences in levels of morbidity with highest in LPB, treatment methods with antibiotic use common in LPB, age of animals sold and sale prices with higher prices in XK. Partial budget analysis of biannual FMD vaccination indicated an average net benefit of USD 22 and USD 33 for cattle and buffalo, respectively. However, vaccination alone is unlikely to control FMD in the region. Promotion of multiple large ruminant health and production intervention programmes to stimulate interest in biosecurity in addition to vaccination is recommended, providing a more sustainable pathway for poverty reduction through the current expansion of livestock investments in the GMS.