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The Economic Impacts of 2015 Avian Influenza Outbreak on the U.S. Turkey Industry and the Loss Mitigating Role of Free Trade Agreements
Author(s) -
Çakır Metin,
Boland Michael A,
Wang Yanghao
Publication year - 2018
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppx027
Subject(s) - outbreak , international trade , economic impact analysis , influenza a virus subtype h5n1 , free trade agreement , business , free trade , economics , agricultural economics , international economics , virus , virology , biology , microeconomics
We investigate the economic impacts of the 2015 HPAI outbreak on turkey producers in Minnesota and the United States. Using a partial equilibrium model of the meat and poultry industry we find that the cost of the outbreak to U.S turkey producers was $225 million; $207 million of which were due to the loss in exports. However, it could have been worse if not for implementation of regional bans by trading partners who have negotiated free trade agreements with the United States. Our results show that for every percentage point of additional exports, U.S. turkey producers avoided a loss of about $6 million.