Independent author disclaimer. This exploratory analysis reflects the views, interpretations and calculations of Dr Bouda Vosough Ahmadi alone. It does not represent the official position, policy or endorsement of any employer, client, government, international organisation, research institution or other affiliated organisation. References to organisations and official sources do not imply endorsement. Results are conditional research scenarios, not forecasts, professional advice or operational disease-control guidance.
United Kingdom · published economic evidence

Foot-and-mouth disease: economic impact

Compare published UK livestock market outcomes and historic fiscal costs. The scenarios below reproduce aggregate results from Feng, Patton and Davis (2017); they are not current forecasts.

STAGING · RESEARCH REVIEW

Economic assumption sensitivity

Published outcomes remain separate from illustrative adjustments. Revenue exposure is not welfare loss.

Undiverted export revenue exposure = annual affected exports × months / 12 × (1 − diversion share). It is not net economic loss and must not be added to the published output changes.

Published market period
Days to application for disease-free status in source study
Beef price vs baseline
Published 2017 model price
Sheepmeat price vs baseline
Published 2017 model price
Pigmeat price vs baseline
Published 2017 model price

Published sector outcomes

Source study: change in 2017 price and gross output value against its own no-event baseline. £ million figures are 2017 model values, without inflation uplift.

Change in gross output value

Gross output value is price × production. It is neither net farm income nor a social welfare loss.

CommodityBaseline £mSelected £mChange £mPrice change

Trade assumptions

All three alternatives are published sensitivity cases, not user-created event paths.

Under the study's full UK export closure assumption, the key difference is whether imports adjust as redirected exports enter the domestic market. Trade value is already reflected in the modelled price and output changes.

Historic public and private cost

Observed 2001 eventPublicPrivate
NAO 2002, prices at the time>£3bn>£5bn
NAO 2025, 2023–24 prices£5.2bn£8.6bn

The 2025 amounts re-express the 2001 event; they are not a second event or an incremental cost. Private cost includes wider sectors. Public expenditure can include transfers and should not be added to lost output as a welfare total.

NAO 2002 · NAO 2025

Representative farm income lens

Transparent sensitivity using prototype gross margins; the market result is applied uniformly to a selected farm as a price exposure, not presented as a calibrated LP solution.

Prototype head counts and margins come from Syntera's FMD economic twin. Those defaults have no established price year or farm survey validation. Dairy is deliberately withheld because the source market paper models beef, sheep and pigs, not milk.

Welfare and decision model status

Producer surplusNot estimated
Consumer surplusNot estimated
Total social welfareNot estimated
Public response cost by scenarioNot reported in the market paper

Market output changes cannot be relabelled as surplus. A defensible surplus calculation needs calibrated supply and demand curves, import and export treatment, and a shared baseline. The existing PE module is a prototype with separate data and configuration; no calibrated welfare output has been verified here.

Longer-run market values

Published percentage changes in discounted 2017–2025 output values, relative to the source baseline. The authors use 3.5% discounting.

SectorSource baseline £mSelected changeApprox. value difference £m*

*Percentage × source baseline, rounded. This is our arithmetic on rounded published percentages, not an additional model run; totals should not be summed with the year-one output differences.