benefit-cost analysis of foot and mouth disease control in large ruminants in cambodia
TRANSCRIPT
ORIGINAL ARTICLE
Benefit-Cost Analysis of Foot and Mouth Disease Control inLarge Ruminants in CambodiaJ. R. Young1, S. Suon2, L. Rast3, S. Nampanya1, P. A. Windsor1 and R. D. Bush1
1 Faculty of Veterinary Science, University of Sydney, Camden, NSW, Australia2 Department of Animal Health and Production, Ministry of Agriculture, Forestry and Fisheries, Phnom Penh, Cambodia3 Charles Sturt University, Wagga Wagga, NSW, Australia
Keywords:
public health; trade; cattle; buffalo;
smallholder farmers; value chain
Correspondence:
J. R. Young. Faculty of Veterinary Science,
University of Sydney, Camden, NSW,
Australia. Tel.: +64211427340;
Fax: +61293511693;
E-mail: [email protected]
Received for publication August 9, 2014
doi:10.1111/tbed.12292
Summary
Foot and mouth disease (FMD) is endemic in Cambodia and throughout the
Greater Mekong Subregion and causes significant losses to rural smallholders
owning the majority of the national large ruminant population. However, due to
underreporting, paucity of knowledge of FMD impacts, limited veterinary capac-
ity and deficits of data available for analysis, the quantifiable benefits of a national
FMD control programme are unknown. To address this deficit, existing literature
and research data from the ‘Best practice health and husbandry of cattle, Cambo-
dia’ project conducted between 2007 and 2012, were used to develop a three-
phase analysis framework to: assess the impacts of the recent widespread FMD
epizootic in Cambodia in 2010, conduct a value chain analysis of the large rumi-
nant market and estimate the costs and benefits for a national large ruminant
biannual FMD vaccination programme. A trader survey conducted in 2010–2011provided cattle and buffalo value chain information and was matched to village
herd structure data to calculate a total large ruminant farm-gate value of USD
1.271 billion in 2010. Monte Carlo simulation modelling that implemented a 5-
year biannual vaccination programme at a cost of USD 6.3 an animal per year
identified a benefit-cost ratio of 1.40 (95% CI 0.96–2.20) when accounting for
recent prices of cattle and buffalo in Cambodia and based on an expected annual
incidence of 0.2 (assuming one major epizootic in the 5-year vaccination pro-
gramme). Given that the majority of the large ruminants are owned by rural
smallholders, and mostly the poor are involved in agricultural employment, the
successful implementation of an FMD control programme in Cambodia would be
expected to avoid estimated losses of USD 135 million; equivalent to 10.6% of the
2010 farm-gate value and contributing to important reductions in rural poverty
and food insecurity.
Introduction
Cambodia together with Myanmar, Lao PDR, Thailand,
Vietnam and the Yunnan Province of China make up the
six states of the Greater Mekong Subregion (GMS), a natu-
ral economic area bound by the Mekong River basin com-
prising 2.6 million km2 and inhabited by ~326 million
people (ADB, 2013). Cambodia has a population of ~14.3million people, with an estimated 70% reliant on agricul-
ture for employment (MAFF, 2012; The World Bank,
2013). Cambodia has a total land area of 181 035 km2, with
75% consisting of the Tonle Sap Basin and Mekong Low-
lands. The relative contribution of agriculture to gross
domestic product (GDP) in Cambodia was 36.0% in 2010
(Trading Economics, 2014) of a total GDP of USD 14 bil-
lion (The World Bank, 2013). Cambodia is one of the poor-
est countries in South-East Asia, ranked 136th on the
Human Development Index slightly ahead of its neighbour
Lao PDR at 139th (UNPD, 2014). Although significant
improvements have been made in the last two decades,
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases. 1
Transboundary and Emerging Diseases
rural poverty remains an important issue with an estimated
30% of people living below the poverty line (MAFF (Minis-
try of Agriculture Forestry and Fisheries), 2012). While rice
production remains the major contributor to the agricul-
tural sector, livestock play an important role in smallholder
farm systems. Livestock often serve multiple purposes
including a source of draught power for transport and till-
age, manure for biodigester fuel and fertilizer, sale for beef,
and importantly as a cash asset store which can be sold
when money is needed (Shankar et al., 2012; Young et al.,
2013a).
Improving cattle and buffalo (large ruminant) produc-
tion in Cambodia is a recognized pathway to alleviate rural
poverty and improve food security in the GMS (Windsor,
2011). However, the national large ruminant herd declined
3.1% between 2009 and 2010 and a further 2.0% between
2010 and 2011 (Suon et al., 2013). In 2011, the national
herd comprised 3 406 972 cattle and 692 611 buffalo with
over 99% of large ruminants owned by smallholder farm-
ers, typically owning 3 or fewer animals (Young et al.,
2013a). Production levels are low, with mean average daily
weight gains of ~50 g per day, poor body condition year
round and poor reproductive performance (Young et al.,
2013a). Foot and mouth disease (FMD) and haemorrhagic
septicaemia (HS) have been identified as the most signifi-
cant transboundary animal diseases (TADs) affecting large
ruminants in the GMS (Young et al., 2013c).
In 2010–2011, a major FMD epizootic highlighted seri-
ous failures in international biosecurity in the GMS, with
regional epizootic peaks in December 2010 until February
2011 and sporadic outbreaks in the following months (OIE
Sub-Regional Representation for South-East Asia, 2011).
The Department of Animal Health and Production
(DAHP) in Cambodia reported 61 449 FMD cases in large
ruminants in 2010 and a further 11 335 in 2011. Further-
more, major FMD outbreaks that occurred in 2010 in both
Japan and South Korea (both previously FMD free without
vaccination) were of virus serotypes shown to have origi-
nated in South-East Asia (Knowles et al., 2012). The global
annual impact of FMD in terms of visible production losses
and vaccination costs in endemic regions has been esti-
mated to be between US$6.5 and US$21 billion (Knight-
Jones and Rushton, 2013).
To justify and direct allocation of resources in FMD con-
trol and eradication programmes, evaluation of the finan-
cial impacts at the national level is required. Several recent
studies have investigated the financial impacts of FMD in
Cambodia and within the GMS (Shankar et al., 2012; Ver-
gne et al., 2012; Young et al., 2013b). However, evaluation
of the national impact of FMD is limited by underreporting
of cases; absence of data on impacts on a per unit basis (i.e.
per animal, household or village), the inability to confi-
dently confirm the diagnosis of FMD and differentiate it
from HS and other diseases in the field, undetermined total
value of the large ruminant industry and inadequate esti-
mates of the quantity of international trade in livestock.
Between 2007 and 2012, the ‘Best practice health and hus-
bandry of cattle, Cambodia’ (BPHH) research project
sought to identify and evaluate a series of health and hus-
bandry interventions implemented at the smallholder
farmer and village level, using a collaborative adult educa-
tion-based extension and farming systems approach. This
project proposed that by increasing farmer knowledge of
large ruminant health and husbandry techniques improved
health and productivity would in turn lead to improved
rural smallholder livelihoods. This study aimed to develop
a framework to enable: (i) further understanding of the
large ruminant value chain; (ii) estimation of the impact of
the 2010 FMD epizootic on smallholder farmers; and (iii) a
benefit-cost analysis (BCA) for improved FMD control
through a national biannual vaccination programme to be
conducted.
FMD and associated impacts
The movement of live animals is considered the most
important method of transmission of FMD virus (Rosen-
berg et al., 1980; Rweyemamu, 1984; Fonnan, 1991; Ferris
et al., 1992; Perry et al., 2002; Windsor et al., 2011). How-
ever, there is a paucity of information describing the large
ruminant value chain in Cambodia, and indeed, significant
challenges are faced when attempting to capture this infor-
mation. Much of the trade is informal (and in some cases
illegal) with smallholders selling their livestock for a num-
ber of reasons other than for beef, such as to liberate an
asset in times of cash need. The National Bank of Cambo-
dia (central bank) reported total depositors reached
1 266 412 by the end of 2011 (National Bank of Cambodia,
2012). Assuming 95% of these are personal accounts and
5% business accounts, then the estimated proportion of the
population with a bank account is only ~8.4% (ANZ Ben
Smith, Personal communication), indicating the use of
large ruminants as a storage of wealth may be highly signifi-
cant. To date, the majority of research on FMD impacts has
focused at the producer level of the value chain.
The first study to report the financial and social impacts
of FMD in Cambodia utilized data from 59 households
affected by FMD in 2006–07 from a total of 117 households
(Shankar et al., 2012). The mean aggregate cost of FMD in
cattle per infected household was USD 45, which accounted
for treatment (USD 23), loss of current sales due to mortal-
ity (USD 15), lost draught work (USD 7) and other (USD
0.06), equating to 7.6% of annual household income or
10% for lower income households (Shankar et al., 2012). A
2010 study of 62 farmers impacted by FMD included the
change in value of sick animals (representing a mean
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases.2
Benefit-Cost Analysis of FMD Control in Cambodia J. R. Young et al.
immediate opportunity cost of USD 200.94), mean draught
replacement costs (USD 31.22), treatment and manage-
ment costs (USD 15.13), and the salvage value of dead ani-
mals (USD 80.50) (Young et al., 2013c). The financial
impact of FMD had increased significantly (when com-
pared to Shankar et al., 2012), likely reflecting a rapid
increase in prices between 2006–2007 and 2010, plus the
inclusion of the significant opportunity cost due to weight
loss resulting from clinical FMD (O’Connell et al., 2013;
Young et al., 2013c). Of note, neither Cambodian study
investigated losses due to chronic FMD, despite an assess-
ment of FMD in South Sudan suggesting the chronic form
of FMD accounted for 28.2% of total FMD losses (Barasa
et al., 2008).
FMD reporting
Cambodia’s administrative structure contains 24 provinces,
185 districts, 1621 communes and 14 073 villages (MoP
(Ministry of Planning), 2009). Government veterinary ser-
vices have offices and staff in the central (Phnom Penh),
provincial and district levels. Although there are no animal
health resources dedicated at the commune level, 12,474
private village animal health workers (VAHWs) were
reported active in 2010, covering ~89% of the villages
(MAFF, 2011).
FMD was reported to occur nearly every year by 41.5%
of VAHW’s and every few years by 27.4% of VAHW’s
(Stratton, 2013). During village FMD outbreaks, 45.4%
VAHW’s reported that greater than 60% of the village herd
was affected (Stratton, 2013). FMD was the disease most
likely to be reported by VAHW’s at ~83%, with HS close
behind at ~81% (Stratton, 2013). However, underreporting
of FMD and HS cases is known to occur in Cambodia
(Shankar et al., 2012; Vergne et al., 2012; Kawasaki et al.,
2013; Young et al., 2013b) and is also likely throughout the
GMS. A two-source capture–recapture analysis for estimat-
ing the true number of villages experiencing clinical FMD
in 2009 was conducted in Svay Rieng province in Cambo-
dia (Vergne et al., 2012), evaluating the reporting rate to
provincial authorities at 0.05 (95% CI 0.03–0.13). In a large
study, 445 VAHW’s conducted in 2010, approximately
72% of VAHW’s claimed to report FMD immediately
(Stratton, 2013).
In a recent study in Laos investigating the financial
impact of FMD, 310 smallholder farmers were surveyed of
which 163 (~53%) responded that they reported FMD
(Nampanya et al., 2013), with a range between 25 and 65%
between the three northern provinces investigated. Of
interest was that farmers indicated they report FMD to the
village chief or village veterinary worker (equivalent to
Cambodia’s VAHW) 69–92% of the time and to the district
officer 8–31% of the time, generally 2–3 days after seeing
the disease (Nampanya et al., 2013). These survey results
confirm that non-reporting of disease occurs from initial
detection and subsequent transfers of information as was
experienced with highly pathogenic avian influenza in
South-East Asia (FAO, 2013). Further filtering can occur at
the next step (usually district level) if the outbreak is to be
judged to be a common endemic problem rather than a
major disease incident requiring immediate investigation
(FAO, 2013) or an emergency response intervention
(Windsor et al., 2011). As capturing disease incident infor-
mation may impose financial burdens from use of time and
communication costs, and these are often borne by those
volunteering information, there is likely to be a decline in
enthusiasm for the reporting process over time (FAO,
2013). Furthermore, this private–public partnership relies
on the efforts of ‘upstream’ officials and the quality of their
engagement with the private village-level workers (FAO,
2013). Surveillance is the foundation of infectious disease
control, and poor reporting sensitivity and specificity is
problematic (Coker et al., 2011), particularly when
attempting to estimate financial burdens and undertake
economic modelling for supporting control decisions.
Large ruminant trade in Cambodia
Large ruminant trade pathways have recently been
described (Cocks et al., 2009; Kerr et al., 2012) and suggest
export of the highest quality Cambodian animals to major
Vietnamese cities, supply of lower quality animals to the
domestic market in Phnom Penh and processing of poor
quality animals at local slaughter points for sale in local dis-
trict and provincial markets. Cambodia was also identified
as a major transit pathway for up to 150 000 large rumi-
nants moving through Cambodia from Thailand to Viet-
nam in 2009 (Kerr et al., 2012). These transit journeys are
usually rapid, crossing Cambodia in as little as 1 day, with
livestock often held in depots (along with cattle sourced
from Cambodia and Myanmar) for up to 4 days prior to
(often illegal) border crossings into Vietnam (Kerr et al.,
2013). It was ascertained that there was limited regulation
with FMD occurring within depots. Disease risks were asso-
ciated with direct contact of livestock from different con-
signments, indirect contact through uncleaned water
troughs and trucks moving through pens, plus limited bio-
security knowledge by depot staff (Kerr et al., 2013), identi-
fying depots as an unmanaged critical control point and
potential amplification point for TAD transmission. Trans-
boundary trade was also shown to be dynamic with the
Thai–Vietnam transit trade greatly decreasing by 2010 due
to currency fluctuations. This indicates that traders operate
on slim profit margins and were inclined to work around
official pathways or stop trading (Kerr et al., 2013). Traders
are recognized as an important source of information on
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases. 3
J. R. Young et al. Benefit-Cost Analysis of FMD Control in Cambodia
animal movements, particularly as previous investigations
indicate that official movement permits did not capture
information on the significant unofficial livestock trade as
well as the movement drivers and trading practices that
influence disease risk (Kerr et al., 2012; O’Connell et al.,
2013). Although these investigations of trader activities
have provided valuable information on regional animal
movement, there remains a paucity of quantifiable infor-
mation on the large ruminant value chain within Cambo-
dia.
Methodology
To identify the required inputs for the BCA of a biannual
FMD vaccination control programme in Cambodia, a
three-phase analysis framework was developed involving
six steps (Fig. 1). Following framework development and
then by working backwards, known information sources
enabled identification of knowledge gaps, then identifica-
tion of specific steps where estimations were required.
Estimation of the financial impact per animal
The mean financial impact of FMD on a per animal basis
was calculated using previously reported estimated average
costs (Young et al., 2013b). This included four possible
outcomes and mean costs: (i) animal survival with treat-
ment USD 216.32; (ii) animal survival with treatment and
draught replacement USD 247.54; (iii) animal dies with
treatment USD 339.32 and (iv) animal dies with treatment
and draught replacement USD 370.54. Using Microsoft
Excel (2013), the four outcomes were proportionally
weighted, based on reported village morbidity (77.3%) and
mortality (7.3%) and use of draught (27%) (Young et al.,
2013b). Monte Carlo (MC) simulation was then applied to
the four mean cost outcomes using normal distribution
and one standard deviation to calculate the predicted mean
cost per animal of clinical FMD using 10 000 iterations in
@risk 6 (Palisade 2014).
Estimating the true FMD incidence in 2010
A reporting probability model was developed to describe
the reporting cascade of FMD from the smallholder farmer
(animal owner) to the central DAHP in Phnom Penh. The
model included the five stages involved in passing on FMD
outbreak information. These included the smallholder
farmer, the VAHW, the district office of animal health and
production (DOAHP), the provincial office of animal
health and production (POAHP), the national veterinary
research institute (NaVRI) and the central DAHP. The
model used a dichotomous scenario, of ‘yes’ – the FMD
report was passed further up the cascade resulting in a
successful report (SR), or ‘no’ – the FMD report was not
escalated resulting in a non-report (NR). The model was
used to calculate the estimated true incidence (ETI) by
Fig. 1. The three-phase analysis framework comprising six steps developed to evaluate the large ruminant value chain in Cambodia and to determine
the financial impact and BCA of potential FMD control in 2010.
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases.4
Benefit-Cost Analysis of FMD Control in Cambodia J. R. Young et al.
multiplying each SR up the cascade. To apply sensitivity to
the model and account for assumptions, a MC simulation
using @risk 6 was applied to the cascade reporting model
for each reporting step to calculate the ETI of FMD using
the formula:
ETI ¼ ðReported FMD casesÞ=ðReporting rateÞ@risk incorporates MC simulation that is based on
inputs including minimum (Mi), most likely (Ml) and
maximum (Ma) values and defining the distribution, then
running the model through 10 000 simulations to provide
an output. A triangular distribution was used where pub-
lished literature provided input mean and range and one
standard deviation (SD) for Mi and Ma where only a singu-
lar value was available or assumptions were used. For esti-
mating the number of farmers who report FMD cases to
the VAHW, values of 25% (Mi), 53% (Ml) and 65% (Ma)
were used based on previous published surveys (Nampanya
et al., 2013). For the number of VAHW’s reporting a case
of FMD to the DOAHP, 72% (Ml) was used (Stratton,
2013) with Mi and Ma as one SD from the mean. In the
remaining three steps of the cascade (Fig. 2) a value of
two-thirds SR (66.6%) was determined to be the Ml with a
triangular distribution and one SD for Mi and Ma values.
The MC model was run using 10 000 iterations to calculate
the ETI.
Establishing the large ruminant value chain including a
farm-gate valuation
To gain further understanding of the large ruminant value
chain, a survey of 100 traders operating in Cambodia was
performed in December 2011 and January 2012. Traders
were purposively selected by DAHP project staff through
known networks, as no sampling frame was available. They
were advised that the information was for research pur-
poses only. Traders were asked to provide details on large
ruminant trading during the previous 12 months. The
structured survey included closed questions on trader’s
address, years trading, primary operating location and total
number of large ruminants purchased during the previous
12 months, broken down by
• Species (cattle or Asiatic buffalo)
• Breed
• Sex (male or female)
• Age groups (0–2, >2–8, >8 years)
• Body condition score (skinny, medium or fat)
The purchase price (per animal) and market sale price
(per kg) for meat from both species was recorded. The tra-
der survey data were summarized to provide mean sale val-
ues for each large ruminant species, sex, age group and
body condition score. Where large ruminant categories
were not represented in the survey, the mean purchase
value was predicted using the proportional variation in cat-
egories of the same breed where the full range of prices was
available. Traders were asked to identify the transport
methods used and what proportion of large ruminants was
sourced directly from farmers and from other traders.
Traders were questioned on costs relating to transport,
slaughter, animal movement levies, meat inspection and
market stall rental. Data from traders who traded more
than 100 large ruminants per year (considered ‘large trad-
ers’) were further summarized to provide value chain infor-
mation, including sources of large ruminants and transport
Fig. 2. Probability model to calculate the estimated true incidence (ETI) of FMD reporting.
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases. 5
J. R. Young et al. Benefit-Cost Analysis of FMD Control in Cambodia
routes and methods. If traders identified more than one
source province, the first-named province was used due to
the assumption that the first was the primary source.
Finally, traders were asked a series of open-ended questions
to describe their views on current issues relating to the large
ruminant marketing and what possible solutions they
might suggest. The results of the trader survey were entered
into and analysed (Microsoft ExcelTM 2010) to provide a
descriptive analysis of the value chain. Purchase and sale
data were provided in Cambodian Riel and converted to
USD at a rate of 4018 Riel = 1 USD. Longitudinal cattle
and buffalo production surveys (Young et al., 2013a) were
used to provide an estimate of smallholder large ruminant
herd age and livestock class structure, to be matched to the
trader survey results. This analysis enabled calculation of
the national farm-gate valuation of large ruminants in
Cambodia.
Estimating the national financial impact of FMD on the
large ruminant industry
The national impact of FMD in Cambodia in 2010 was esti-
mated as:
Total impacts at farm-gate USD¼Mean financial impact per animal (calculated in Step 1)� ETI of FMD in2010ðcalculated in Step 2Þ
Estimating the cost of FMD control
Cost data from regular cattle and buffalo vaccinations in
BPHH project villages was used to prepare a budget for
biannual FMD vaccination at the village level (Table 1). To
vaccinate a village of 400 large ruminants generally requires
3 staff due to the limited availability of large ruminant han-
dling facilities making this a time and labour intensive
activity. The vaccination procedure involves DAHP staff
setting up a vaccination station in each village location with
farmers invited to bring their large ruminants for vaccina-
tion. Smallholder farmers will generally be available from
8:30 a.m. to 11:00 a.m. due to other household work and
employment commitments. On average, 100 large rumi-
nants are vaccinated per day for 4 days. The budget for the
village vaccination was developed and then scaled to calcu-
late the cost of a national herd control campaign by calcu-
lating the cost on a per animal basis and then multiplying
that cost by the national population.
Undertaking a benefit-cost analysis for FMD control using
biannual vaccination
A BCA was performed to determine the economic feasibil-
ity for conducting a national large ruminant biannual FMD
vaccination campaign over a 5-year duration. A benefit-
cost ratio (BCR) was determined as the decision criterion
and was calculated based on the formula (Dijkhuizen and
Morris, 1997):
BCR ¼ PV(benefits)=PV(costs)
PV = FV=ð1þ r=100Þn
r is the annual ‘interest rate’ (in %) and n is the number of
years in the future
The present value (PV) of a future cost or benefit (FV)
incorporates the discount rate to ensure costs and benefits
are comparable. The BCR was calculated assuming a major
outbreak (equivalent to the 2010 outbreak) occurs in either
year one, two, three, four or five (i.e. an incidence of 1.00,
0.50, 0.33, 0.25 and 0.20 over the 5-year control pro-
gramme). A discount rate of 8% was selected based on the
10-year average interest rate (1994–2014) in Cambodia of
4% (Trading Economics, 2014) and an additional 4% to
account for an estimated agricultural investment risk, and
applied to both the FMD vaccination programme cost and
predicted financial impact. MC simulation using defined
inputs (from steps 1 to 5) was applied to the BCA model
with 10 000 iterations for the five different incidence sce-
narios. A BCR ≥1 indicates the investment is worthwhile.
Results
Estimation of the financial impact per animal
The mean financial impact per animal of FMD in Cambo-
dia was USD 247.34 based on a proportional weighted out-
come using the four possible outcomes (Fig. 3).
Estimating the true incidence of disease in 2010
Using the probability model in Fig. 2 and applying MC
simulation, the estimated reported number of FMD cases
accounted for 11.3% of the ETI. Therefore the ETI of FMD
in Cambodia in 2010 was calculated as 545 109 individual
large ruminant cases.
Table 1. FMD vaccination budget in USD for a village with 400 large
ruminants
Item Unit cost (USD) Total (USD)
FMD vaccine $1.30 per animal 9 400 $520.00
Vehicle cost $100 per day 9 4 days $400.00
Equipment Cooler box, vaccination
guns, needles, recording sheets
$100.00
Accommodation $10 per person per
night 9 4 nights
$120.00
Per diem $10 per person per
day 9 3 people
$120.00
Total $1260.00
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases.6
Benefit-Cost Analysis of FMD Control in Cambodia J. R. Young et al.
Evaluating the farm-gate value of large ruminants in
Cambodia
Surveyed traders had a mean of 10.0 years (range 1–32 years) trading experience. A descriptive summary of
traders who traded 100 or more large ruminants in the
12 months prior to the survey is provided (Table 2). The
mean sale prices recorded by the traders for each large
ruminant stock class is also provided (Table 3). Large
ruminant herd structure including age, sex and body condi-
tion was matched to longitudinal data to calculate the
national farm-gate valuation of USD 1 271 789 989.
Traders operated in multiple geographic areas with 49%
of traders sourcing animals from outside of their home
operating location and purchasing 64.7% of livestock
traded. All traders (100%) determine the purchase price of
large ruminants based on body condition score and general
appearance. Their primary operating locations included the
provinces of Kandal (18 traders), Kampong Thom (19),
Takeo (10), Kampot (14), Kampong Cham (33), Beantey
Men Chay (2), Phnom Penh (1), Peras Vihar (1) and Thai-
land (2). All but 5 traders stated that they were farmers as
well as traders. Districts where ‘large traders’ sourcing more
than 100 large ruminants in the 12-month period are
shown (Fig. 4) and value chain information is summarized
(Table 2).
Traders sourced large ruminants by multiple methods,
including: (i) 94% of traders purchase livestock directly
from farmers; (ii) 36% purchase from a middleman trader;
(iii) 6% purchase from a broker and (iv) 2% of trader’s
sourced livestock by ‘other’ means.
Twenty-three traders were based in Phnom Penh primar-
ily supplying large ruminants to the Choy Chhangva
Slaughterhouse in Phnom Penh. Large ruminants were
sourced from seven provinces including Kampong Cham,
Oddar Meanchey, Kampong Thom, Preah Vihear, Oddar
Meanchey, Stung Treng, Banteay Meanchey and one trader
sourced large ruminants from Thailand. Average beef prices
at six markets are provided (Table 4).
Traders were asked open questions about issues they
faced in their occupation. These were grouped where possi-
ble to highlight the most common issues (Table 5).
National financial impact of FMD to the large ruminant
industry
The estimated financial national impact on the farm-gate
valuation of large ruminants was calculated as the
ETI 9 (mean costs). This equated to USD 134 829 478
equivalent to 10.6% of the farm-gate valuation.
Estimated cost of FMD control in Cambodia
The cost of FMD control on an animal per year basis was
calculated as USD 3.15 per animal per vaccination, or USD
6.30 an animal per year. The total annual cost for the
national herd was USD 25 827 373.
Cost-benefit analysis for improved FMD control in
Cambodia using biannual vaccination
Results from a baseline model to determine the benefits
and costs for improved FMD control in Cambodia using
biannual vaccination are presented (Table 6). Both costs
and impacts were adjusted annually to account for the
discount rate. Only in the fifth year of the programme
did the BCR 95% CI drop below the decision criterion
of 1.
Fig. 3. Proportional weighted animal survival outcome of FMD infection.
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases. 7
J. R. Young et al. Benefit-Cost Analysis of FMD Control in Cambodia
Table
2.Descriptive
summaryoftrad
erswhotrad
ed100ormore
largeruminan
tsin
the12monthspriorto
thesurvey
Trad
ers(n)
Source
province/Country
Sourcedistrict
Total
cattle
Total
buffalo
Prim
aryroute
(nTrad
ers)
Tran
sport
method
Averagetran
sport
cost(USD
)Slau
ghterhouse
Salepoint
10
Kam
pongCham
Cham
kaler,Tu
ongKmom,
Kam
pongSe
em,Se
iySo
ntuor,
KosSo
etin,KongMea
s,
Prey
Chor
2649
0Mek
ongRiver
(8),
Road
6,7an
d
8(2)
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© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases.8
Benefit-Cost Analysis of FMD Control in Cambodia J. R. Young et al.
Discussion
This study provides one of the first attempts to quantify
both the national impact of a large-scale FMD epizootic
and conduct a BCA of a national FMD control pro-
gramme. This BCA analysis supports the implementation
of a national biannual FMD vaccination control pro-
gramme in Cambodia, with sensitivity analysis using con-
fidence intervals only marginally dropping below 1 in the
fifth year of the programme. As the movement of live
animals is considered the highest risk factor for FMD
Table 3. Mean price of large ruminants in Cambodia between December 2011 and January 2012
Breed Sex Age Condition n traders
Total head
sold Lower price Upper price Mean price (USD)
L F 0–2 1 0 0 – – 255.09a
L F 0–2 2 5 131 249.69 374.53 335.46
L F 0–2 3 2 60 424.47 449.44 441.16
L F >2–4 1 2 21 174.78 174.78 174.78
L F >2–4 2 28 1200 149.81 624.22 413.34
L F >2–4 3 9 439 299.63 923.85 597.15
L F >4–10 1 2 63 249.69 249.69 249.69
L F >4–10 2 47 2966 324.59 749.06 505.44
L F >4–10 3 16 742 299.63 823.97 608.64
L M 0–2 1 0 0 – – 265.35a
L M 0–2 2 5 152 274.66 424.47 364.02
L M 0–2 3 2 110 499.38 499.38 499.38
L CM >2–4 1 2 33 199.75 199.75 199.75
L CM >2–4 2 27 2231 199.75 624.22 484.89
L CM >2–4 3 9 849 324.59 998.75 660.81
L CM >4–10 1 2 78 299.63 299.63 299.63
L CM >4–10 2 49 4443 299.63 873.91 633.40
L CM >4–10 3 16 1888 374.53 998.75 541.75
CB F >2–4 3 2 1400 523.04 523.04 523.04
CB F >4–10 3 2 100 560.40 560.40 560.40
CB CM >2–4 3 2 2440 523.04 523.04 523.04
CB CM >4–10 3 2 100 560.40 560.40 560.40
CH F 0–2 1 0 0 – – 184.01a
CH F 0–2 2 2 82 224.16 249.07 239.35
CH F 0–2 3 1 50 311.33 311.33 311.33
CH F >2–4 1 0 0 – – 325.22a
CH F >2–4 2 6 188 186.80 435.87 340.94
CH F >2–4 3 6 248 249.07 435.87 357.43
CH F >4–10 1 0 0 – – 291.38a
CH F >4–10 2 8 365 249.07 373.60 361.15
CH F >4–10 3 15 1367 311.33 498.13 447.62
CH M 0–2 1 0 0 – – 322.47a
CH M 0–2 2 2 57 249.07 373.60 358.31
CH M 0–2 3 1 50 398.51 398.51 398.51
CH M >4–10 1 0 0 – – 412.32a
CH M >4–10 2 1 15 435.87 435.87 435.87
CH M >4–10 3 1 25 460.77 460.77 460.77
CH CM >4–10 1 0 0 – – 304.52a
CH CM >4–10 2 8 596 273.97 473.23 379.53
CH CM >4–10 3 15 1247 373.60 560.40 473.02
CH CM >2–4 1 0 0 – – 240.60a
CH CM >2–4 2 6 207 211.71 498.13 323.00
CH CM >2–4 3 6 360 311.33 535.49 433.62
B F >2–4 2 1 10 186.80 186.80 186.80
B F >4–10 2 7 175 249.07 311.33 276.11
B CM >4–10 2 8 256 249.07 373.60 285.79
NB: L = Local breed, CB, Crossbred/Brahman, CH, Crossbred/Haryana, B, Asiatic Buffalo, aEstimated mean purchase value predicted using the pro-
portional variation in categories of the same breed where the full range of prices was available, F = female, M = entire male, CM = castrated male.
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases. 9
J. R. Young et al. Benefit-Cost Analysis of FMD Control in Cambodia
transmission, consideration of control measures without
attempts to understand the smallholder large ruminant
value chain may be limited in value. In this analysis, the
farm-gate value of the national large ruminant herd was
USD 1.271 billion. This represents a significant store of
wealth predominantly held by smallholder farmers. There
is a paucity of information on the large ruminant value
chain, and baseline descriptive information on the large
ruminant market is needed to assist in allocation of
resources to both protect and develop this market.
Not surprisingly, a large variation in both trader prac-
tices and prices for livestock was reported, demonstrating
the heterogeneous nature of the large ruminant industry in
Cambodia, a not uncommon finding in smallholder live-
stock systems. Cattle beef prices were generally higher than
buffalo at market, and the highest beef price was reported
in Phnom Penh and Kandal Province, most likely reflecting
the highest demand for red meat in the capital. Traders
used multiple methods both to source and transport large
ruminants to markets, with almost all traders sourcing
directly from farmers, and approximately a third sourcing
from middlemen. This study identified five slaughterhouses
where surveyed traders reported over 100 trades in a 12-
month trading period. Further engagement with both trad-
ers and slaughterhouse operators could offer opportunities
for the development of meat processing, food safety, live-
stock recording systems, market trends, disease prevention
activities and biosecurity. While further research is needed,
particularly in value chain components beyond the farm
gate, this study provides information on large ruminant
trading, transport methods and routes, processing and sale
points in Cambodia. This information is important in
understanding where to apply disease control interventions,
including both specific locations and key stakeholders. The
farm-gate valuation provides a method to help quantify the
impact of the 2010 FMD epizootic on the collective small-
holder farmer.
The calculated total impact of the 2010 FMD epizootic
of USD 135 million represents 10.6% of the farm-gate
value. Flow-on effects further along the value chain are
likely to add to negative financial impacts of FMD and fur-
ther support the decision for FMD control using economic
evidence. Chronic impacts of FMD may also exacerbate the
losses. Food security and poverty are major issues within
the GMS, with the sustainable production of red meat
highlighted as a priority by the Cambodian government.
However, the ongoing secure supply of red meat from large
ruminants is subject to the introduction of improved con-
trol and prevention measures for diseases such as FMD and
HS. The allocation of limited resources for disease risk
management and control must be supported with accurate
evidence of disease cost to promote government policy for-
mation and facilitate support from donor organizations.
This paper enhances knowledge of the Cambodian large
ruminant value chain as well as proposes a model for
improved estimates of the costs of FMD and benefits of
FMD control in Cambodia. As impact per animal data was
sourced from four villages and the resultant potential of
sample size to lead to sampling bias and impact validity,
Monte Carlo simulation modelling was developed using
Microsoft Excel with@risk to apply sensitivity analysis.
Undertaking large-scale FMD impact studies presents a
range of both logistical (and potentially ethical) difficulties.
This should be acknowledged rather than restrictive in
efforts to develop models to quantify impacts, as ultimately
decisions for improved biosecurity including the use (or
non-use) of vaccination must be made. Indirect impacts
are difficult to assess, and the growing awareness of animal
welfare driving consumer preferences in on-farm manage-
ment must not be ignored, including within developing
countries. In smallholder systems, there is a huge range of
variability between farm-to-farm, village-to-village and so
on. The Cambodian agricultural calendar is determined by
a seasonal climate, and the timing of an outbreak would be
expected to cause variation in the direct and indirect
impact costs on affected smallholders. FMDV infection can
produce variable clinical signs and severity depending on
the strain, infective dose and individual susceptibility (Kit-
ching et al., 2005). Secondary infections may also occur,
leading to greater weight loss or increased mortality. Com-
bined outbreaks of FMD and HS have been reported in
India (Subash et al., 2004), and this scenario may have
occurred in Cambodia as both diseases are endemic.
The chronic impacts of FMD have been reported (Mi-
nett, 1948; Maqsood et al., 1958; Ghanem and Abdel-
Hamid, 2010) and reviewed by Arzt et al. (2011). During
the BPHH project, we were advised of cases of cattle post-
FMD that fit the Arzt et al. (2011) clinical description of
the ‘heat intolerance syndrome’, with farmers commenting
cattle ‘like to swim a lot’ and their ‘coats changed colour’.
Little is known about FMDV recovery in the GMS, with
assumptions that animals make a full recovery, although
there is very little data to support this or information on
how long it takes for return to the pre-disease healthy
weight in ‘the field’. Impacts on future fertility and repro-
duction, growth and lifetime productivity in the GMS are
also unknown and further research is required.
The notifiable disease reporting cascade was presented to
demonstrate the hierarchical nature of veterinary services
in GMS countries. While FMD is often described as being
endemic, this does not always reflect the nature of epizootic
outbreaks that have been observed such as in 2010–2011(Madin, 2011). A number of factors may impact this, such
as an outbreak of a new FMDV strain or subtype, waning
natural herd immunity and market forces leading to
changes in animal movement trends. Since the 2010–2011
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases.10
Benefit-Cost Analysis of FMD Control in Cambodia J. R. Young et al.
epizootic, the Cambodian DAHP has implemented a dis-
ease reporting phone ‘hotline’ (FAO, 2013) to provide a
more direct reporting tool. The effectiveness of this strategy
requires evaluation, particularly as it may be limited in the
absence of a widespread biosecurity public awareness
campaign. Further, the reporting of cases of FMD may be
limited due to a number of reasons. Clinical diagnosis can
be a challenge due to difficulty to recognize the mild form
of the disease (Kitching, 2002) and differentiate it from
other infectious diseases such as HS. Farmers and VAHWs
may not have the knowledge to identify and differentiate
disease based on clinical signs and/or are unaware of the
requirement to report this notifiable disease. Recognition
of clinical signs and knowledge of infectious disease has
been shown to be low (Nampanya et al., 2012; Young et al.,
2014). In the event of widespread outbreaks, as was the case
in 2010, farmers decisions to report may be impacted by a
so-called diffusion of responsibility, not dissimilar to the
‘bystander effect’ reported in psychology literature where
large groups who witness an emergency are less likely to
intervene believing that others will (Darley and Latan�e,
1968). The estimation of underreporting of FMD cases
used both literature reported inputs and estimations, par-
ticularly in the three upper steps of the reporting cascade.
While accuracy in these assumptions would be a valid
query, a detail capture-recapture analysis in southern Cam-
bodia in 2009 reported only 5% of FMD cases were
reported (Vergne et al., 2012). Therefore, our ETI of
545 000 or 11.3% could be considered conservative. Vergne
et al. (2012) identified that only the most severely affected
villages were reported, as the case in Svay Rieng in 2009.
Provincial authorities were aware that many more villages
experienced clinical cases, and their failure to record all the
infected villages can hamper national and regional efforts
to combat and eradicate FMD (Vergne et al., 2012) with
more accurate notification protocols required.
Fig. 4. Districts identified by traders as the primary source of large ruminants along with primary transit routes.
Table 4. Average meat market price per kg
Mean meat market price (USD) per kg
Province Cattle Buffalo
Kandal 6.99 6.49
Kampong Thom 5.49 5.49
Takeo 5.74 5.49
Kampot 5.49 5.49
Phnom Penh 6.99 6.49
Kampong Cham 5.74 5.74
All Provinces 6.08 5.87
Table 5. Cambodian trader comments and issues
Cambodian trader comments & issues %
Low margin on trades 42
Lack formal domestic market 14
DAHP to improve farmer production and knowledge 14
Limited large ruminant supply 11
Suggest improve large ruminant breed 4
Reduce slaughter taxes 3
Vietnam sale payment issues 2
High transport licence costs 2
High transport costs 1
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases. 11
J. R. Young et al. Benefit-Cost Analysis of FMD Control in Cambodia
The cost of biannual vaccination was based on staff from
the DAHP travelling to each village site and undertaking a
vaccination programme. This activity is costly, and greater
engagement with VAHWs and collaboration with the com-
mercial sector would be expected to lead to improved effi-
ciency and a reduction of cost. A government-led national
vaccination programme with the current human resources
available is not considered viable, with research of methods
of implementation and sustainability urgently needed.
FMD vaccine is costly and significant effort and technical
expertise is required to ensure vaccines provide efficacious
protection to circulating field strains by the collection of
evidence that successful immunomodulation has been
achieved. Education is needed to improve intervention suc-
cess and sustainability, particularly in cold chain manage-
ment of vaccine and farmer understanding of the benefits
of vaccination and improved biosecurity (Young et al.,
2013b). The model does not account for vaccine protection
levels, and instead assumes that herd immunity is achieved
with costs are allowed for the entire national herd. The fun-
damental concept of herd immunity is that it is not neces-
sary to immunize every individual large ruminant within a
population to be able to prevent its entry into that popula-
tion (Roeder and Taylor, 2007). Despite the model, it is
unlikely that any vaccination programme could be expected
to reach all large ruminants, particularly in year 1. Initial
attention should focus on FMD ‘hot spots’ or areas with
high reports and large ruminant density. However, defining
hot spots may be influenced by reporting bias in the
absence of a highly functional and effective veterinary ser-
vice. This indicates that surveillance should focus on areas
of dense large ruminant populations and where high levels
of trade in large ruminants occur. Careful consideration
should be given to areas for zoning under the OIEs guide-
lines, and in particular support (including financial) in the
implementation of such programmes. Applying funding for
vaccination without funding for effective implementation
capacity carries a high risk, with a suggested funding ratio
of 1:1 for vaccine cost and technical support. It should be
noted that this model did not account for FMD control
costs such as on-going disease surveillance.
The OIE defines an ‘outbreak’ as the occurrence of one
or more cases in an epidemiological unit. However, defin-
ing the epidemiological unit can present challenges that
vary depending on management and community structure.
We propose that in Cambodia the epidemiological unit be
defined as the village, as large ruminants are often taken
out daily in groups from multiple smallholdings (Young
et al., 2013a) and that biosecurity interventions should be
targeted at the village level due to the high level of comin-
gling and intravillage trades. The key indicator should be
the recognition of an infected village, rather than number
of cases per se, particularly as underreporting subsequently
results in reduced awareness of the full socio-economic
impacts of the disease outbreak. Use of social network
analysis research techniques could provide valuable infor-
mation on risk quantification of intravillage interactions
and contact rates.
The greatest impact on reducing FMD spread among vil-
lages is considered to involve strategies that reduce the like-
lihood of introductions through livestock purchases and
encourage villagers to take greater care when grazing live-
stock with animals from neighbouring villages, particularly
when sharing common water supplies (Cleland et al.,
1996). Previous research has also identified that biosecurity
education for traders and other market chain participants
would help to reduce TAD transmission in the GMS (Kerr
et al., 2013). However, further evidence is needed to sup-
port this, particularly as there is considerable potential for
traders to purchase and move diseased livestock at ‘salvage’
prices, capitalizing on animals with reduced body weight
and condition and potentially exacerbating disease trans-
mission through direct movement or fomites. Traders cur-
rently establish large ruminant purchase and sale prices on
visual assessment of body weight and condition (Henry
and Bush, 2013). VAHWs may also stand to benefit from
the result of a disease outbreak through the sale of drugs
for treatments, particularly of inappropriate antibiotics of
doubtful therapeutic value for a viral aetiology unless a sec-
ondary bacterial infection has occurred, incurring signifi-
cant losses to household incomes (unpublished
observations). A very different scenario exists for an out-
break of HS, where immediate antibiotic therapy is strongly
indicated to prevent mortalities. This indicates the need for
improved skills in differentiating FMD from HS in the field
and applying the appropriate interventions. Understanding
Table 6. Benefit-cost analysis over the 5-year biannual vaccination programme
Cost-benefit analysis Year 1 Year 2 Year 3 Year 4 Year 5
Annual Incidence 1.00 0.50 0.33 0.25 0.20
Annual cost USD 25 827 373 27 893 563 30 125 048 32 535 052 35 137 856
Accrual cost USD – 53 720 936 83 845 983 116 381 035 151 518 891
Financial impact of outbreak USD 134 829 478 145 615 836 157 265 103 169 846 311 183 434 016
Benefit Cost Ratio (BCR) 5.22 2.71 1.88 1.46 1.21
MC simulation BCR (95%CI) 6.05 (4.11–9.55) 3.14 (2.15–4.97) 2.17 (1.48–3.40) 1.69 (1.15–2.66) 1.40 (0.96–2.20)
© 2014 Blackwell Verlag GmbH • Transboundary and Emerging Diseases.12
Benefit-Cost Analysis of FMD Control in Cambodia J. R. Young et al.
motivations of stakeholders is an important step in manag-
ing disease control efforts. In order to ensure stakeholders
are motivated to report disease, there must be an actionable
result that addresses risk management. If reporting results
in very few emergency response disease control measures
due to limited resources such as vaccination programmes
and movement restrictions (Tum et al., 2011), VAHWs
would be expected to have limited motivation to report
infections to veterinary authorities (Vergne et al., 2012).
Conclusion
Large ruminants are important in smallholder livestock sys-
tems in the GMS and sustainable growth of this market has
significant potential to reduce rural poverty and food inse-
curity. However, significant transboundary animal disease
risks such as FMD need to be addressed to ensure small-
holder farmers have an opportunity to participate in grow-
ing regional economies of the GMS. This study provides a
framework for assessing financial impacts at the national
level and a BCA for FMD control by vaccination. This
framework can be updated with improved data and utilized
in other countries within the GMS. It is envisaged this
information will help direct policy and further TAD control
in Cambodia, and potentially, the GMS. The framework
can be applied to all countries within the GMS and input
data improved upon as future data and research is con-
ducted.
Acknowledgements
The ‘Best practice health and husbandry of cattle, Cambo-
dia’ (AH/2005/086) project was funded by the Australian
Centre for International Agricultural Research, and this
support is acknowledged as many of the results from this
and other recent research were used to develop the frame-
work used in this manuscript. The authors would particu-
larly like to thank the staff from the Department of Animal
Health and Production, Phnom Penh, for their diligent
field work and dedication to animal health and production
extension.
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