Market Failure in Disease Control: Bovine Viral Diarrhea Virus (BVDV) and the Economic Feasibility of Enhanced Control in the Beef Cattle Industry

Abstract

Bovine Viral Diarrhea Virus (BVDv) is a disease that has effects that are not identified by the majority of operations in the beef industry. This research is designed to evaluate the cost of the disease at every level and compare that to the cost of implementing an enhanced control system. By evaluating the cost of vaccination and eradication versus morbidity and mortality from cow-calf operations, feeder/backgrounding operations, and feedlot operations a base partial budgeting model can be used to determine the cost of BVDv on each individual operation and the cost of vaccination and eradication. A cost-benefit analysis on every level will determine if enhanced control is a cost-effective endeavor for the industry. This will indicate that feedlots and stockers would benefit from providing a monetary incentive to cow-calf producers to vaccinate and eradicate possibly infected animals would be plausible. This disease can be better managed if the industry implements a control program across all sectors.