Working Document Series Open Access 2012 RUF-32327

Economic Analysis of Transboundary Animal Disease Control in Ntungamo and Rakai Districts in Uganda

I. BayiyanaW. Ekere

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Abstract

364 words

Livestock plays an important role in the economies of many developing countries. It provides food, income, employment and foreign exchange. Transboundary animal diseases (TADs) are a major threat to livestock keepers. They have evident economic impacts both through the private and public costs of the outbreak, and through the costs of measures taken to control infestation and disease outbreaks. This study assessed the socioeconomic effects of two TADs namely Foot and Mouth Disease and East Coast Fever and farmers’ willingness to pay for the control of these diseases. The study characterised agropastoralists in Ntungamo and Rakai districts in Uganda; evaluated the farm level benefits and costs associated with the control of TADs; and determined the factors influencing farmers’ willingness to pay for TADs control. A sample of 176 farmers from Rakai and Ntungamo districts was used to generate responses. Data were collected using pretested questionnaires and analysed using SPSS and STATA. Analytical tools used included descriptive statistics, Cost Benefit Analysis (CBA) and Logit models. The study found that spraying and vaccination were the most commonly used methods of TADs control. Annual cost of spraying per animal was estimated atUGX 8,867 (equivalent to about US$3.3) while that of vaccination was UGX 500 ($0.2) per animal per year. Total annual losses avoided per animal were 64% higher if TADs were controlled than if they were not controlled. The benefit cost ratio was 4.4 indicating that the benefits of TADs control were greater than the costs. Whereas high income earning farmers had a higher probability of paying for TADs control, low income earning farmers reported a lower probability to do so. The study revealed that 60% of the farmers were willing to pay for TADs control. In order to ensure effective TADs control, farmers should be encouraged to pay for TADs control because it is from the healthy animals that reasonable annual income is realised. Vaccination should be subsidized to encourage farmers’ willingness to pay for TADs control. Farmers should also be sensitised about the importance of their payment towards TADscontrol as this boasts their output and hence their profits. Veterinary services delivery should also be improved by making veterinary services more accessible to farmers through training.

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