Disease outbreak will cost YOU £50,000

An outbreak of Avian Influenza will cost the average free range producer £50,000. And it could be much more.

That is the alarming result of a BFREPA investigation into the figures that lie behind Government plans to cope with both AI and Newcastle Disease.

The findings reflect the new Government policy of forcing farmers to pick up most of the bill in the event of a major disease outbreak requiring stock slaughter.

As previously made clear in the Ranger the contingency plans for AI and ND lay down demands for individual producers to cover the cost of cleaning, disinfection and disposal. And offer minimum compensation payments.

In its study of the implications of the plans BFREPA examined the theoretical case of a producer with 10,000 birds struck by the disease at 40 weeks of age.

Defra has a standard rate for compensation based on the age of the bird. At 40 weeks of age the pay out will be £2.55p for each bird not actually affected by the disease at the time of slaughter. We have assumed 25 per cent of the flock were affected. So total compensation is in the order of £20,000.

The loss of income from eggs, assuming depletion at 70 weeks, is around £70,000. That is after feed costs have been deducted from the egg revenue.

Under the terms of the contingency plan the producer is also held responsible for the second of two cleaning operations on the shed or sheds, disposing of the manure according to strict guidelines and cleaning of the range.

We estimate the shed cleaning and disinfecting operations will cost £1,750. The stacking and storage of 200 tons of manure followed by its transportation in sealed vehicles to an approved disposal site will add a further £2,000. Alternatives would be to bury or burn it.

The plan is vague about what will be needed to be done to clear range areas of infection but Defra vets will be able to demand ploughing and reseeding of the entire area. We have assumed this operation only on that part of the pasture nearest the shed and have priced it at £1,000. That creates total costs of £74,750.

This assumes that birds will be back on the unit in 32 weeks, when the replacement flock would have been installed. According to the Defra plan birds can be allowed back into a building 21 days after all cleaning has been completed. But if manure is not destroyed it requires storage on farm for 42 days before removal. And no range will be declared clear for 56 days after cleaning operations.

But this assumes no further disease outbreaks in the area. Each new case will extend local restrictions by 30 days. In any case finding an alternative supply of pullets at short notice is likely to prove impossible particularly given that even if birds exist they may be held in a restriction zone.

Further assumptions are that the pullets already ordered by the producer will still be available—and not culled themselves.

“Our estimates could be very much on the low side,” said BFREPA vice-chairman John Widdowson, “but even at these levels the costs could easily mean the end for the businesses who are caught in an outbreak.

“If disease strikes in this country it will not be the fault of the individual producer yet he or she is clearly being asked to pick up the bill. The Government is suggesting that farmers take out insurance to cover this situation. But no such insurance is available.”

BFREPA has already pressed for a change in Government policy on compensation. Defra officials have responded that they are researching the prospects for insurance cover.

* Defra has begun a research project to establish rates of compensation for free range and organic layers, as well as other forms of poultry. At present compensation is calculated only for broiler breeders and cage flocks and are used to calculate payments in the case of salmonella related culls.

How the bills add up...

Loss of income from sales of eggs £70,000

Cost of second clean down £1,750

Cost of range ‘cleaning’ £1,000

Manure removal to approved site £2,000

LESS

Compensation at £2.55p per bird

for 75% of flock £20,000

TOTAL COSTS £54,750