Regional and plant-size impacts of COVID-19 on beef processing.

During the COVID-19 pandemic, U.S. consumers witnessed changes in the volume and type of meat products available at retail and food service markets. Simultaneously, widening farm-to-wholesale price spreads fueled calls for industry change and several related policy proposals. The objective of this study is to document fed cattle slaughter and evaluate the structure and performance of the beef processing industry during the early stages of the COVID-19 pandemic. For major beef-producing regions, the 2019-2020 change in federally inspected U.S. cattle slaughter volumes varied in isolated instances with regional reliance on larger processing facilities. Implications of this are discussed both for current policy and industry discussions, as well as to encourage additional future research.

U.S. Cattle Producer Adoption of Secure Beef Supply Plan Enhanced Biosecurity Practices and Foot-and-Mouth Disease Preparedness.

The prospect of a foot-and-mouth disease (FMD) outbreak in U.S. livestock populations has motivated the development of the Secure Beef Supply (SBS) Plan, which includes a comprehensive list of enhanced biosecurity practices that aim to prevent FMD transmission and facilitate continuity of business during an outbreak. While FMD poses a serious threat to livestock production in the United States, little is known about producers' uptake of the enhanced biosecurity practices included in the SBS Plan. In this study, we benchmark adoption and feasibility-of-adoption perceptions for U.S. cattle producers. Our results show adoption of the 13 enhanced biosecurity practices is generally low. Especially concerning is the low adoption of the three strongly-recommended pre-outbreak practices-having a biosecurity manager, having a written operation-specific enhanced biosecurity plan, and having a line of separation. Adoption of the pre-outbreak practices is likely low because the benefits of adopting the practices depend on a low probability, uncertain event. That said, producers who have adopted the pre-outbreak practices are more likely to have higher feasibility ratings for the remaining enhanced biosecurity practices, suggesting that adoption of the strongly recommended practices is associated with adoption of all enhanced biosecurity during an FMD outbreak. Complementarity is examined and shows that adoption of the pre-outbreak practices coincides with adoption of the outbreak-specific practices. Taken together, our results suggest that adoption of the strongly recommended pre-outbreak practices could help facilitate a quicker and more effective U.S. cattle industry response to an FMD outbreak in the United States.

A descriptive analysis of the COVID-19 impacts on U.S. pork, turkey, and egg markets.

The novel coronavirus SARS-CoV2 (COVID-19) severely disrupted the U.S. food supply chain. In its initial aftermath, and as we contemplate a potential reignition, the food supply chain industries, researchers, and policy makers search for evidence, causes, and consequences. This article uses publicly available data on the pork and egg industries and a survey of the turkey industry as a first step to document the impact of COVID-19. Researchers can learn from the experiences in industries where disruptions evolve differently in the face of simultaneous supply- and demand-side shocks and that stem from differences in structures of the supply chains. This early evidence is used to motivate future research needs and highlight opportunities for industry investments in resiliency strategies.

Innovative strategies for managing swine welfare during the COVID-19 pandemic in Iowa.

Coronavirus Disease 2019 (COVID-19) was declared a global pandemic on March 11, 2020 by the World Health Organization and its impact on animal agriculture in the United States was undeniable. By April, COVID-19 resulted in the simultaneous closure or reduced operations of many meat processing plants in the upper Midwest, leading to supply chain disruptions. In Iowa, the leading pork production and processing state, these disruptions caused producer uncertainty, confusion, and stress, including time-sensitive challenges for maintaining animal care. The Iowa Resource Coordination Center (IRCC) was quickly created and launched by the Iowa Department of Agriculture and Land Stewardship (IDALS). The IRCC included public representation from the Iowa Pork Producers Association (IPPA), Iowa Pork Industry Center (IPIC), and Iowa State University Extension and Outreach, and private partners including producers, veterinarians, and technical specialists. Supporting swine welfare, the IRCC provided information on management strategies, dietary alterations to slow pig growth, alternative markets, on-farm euthanasia, and mass depopulation under veterinary oversight. In a crisis, Iowa created a model that reacted to producers' pragmatic, mental and emotional needs. This model could be quickly replicated with an introduction of foreign animal disease.

Beef and Pork Marketing Margins and Price Spreads during COVID-19.

COVID-19-related disruptions led to a historic rise in the spread between livestock and wholesale meat prices. Concerns about concentration and allegations of anticompetitive behavior have led to several inquiries and civil suits by the U.S. Department of Agriculture and the U.S. Department of Justice, with increases in price differentials serving as a focal point. This article notes the difference between price spreads and marketing margins, outlines corresponding economic theory, and describes the empirical evidence on wholesale meat and livestock price dynamics in the wake of COVID-19 disruptions. At one point during the pandemic, beef and pork packers were both operating at about 60% of the previous year's processing volume. We explore how such a massive supply shock would be expected to affect marketing margins even in the absence of anticompetitive behavior. Moreover, we document how margin measurements are critically sensitive to the selection of data and information utilized. Finally, we conclude with some discussion around policy proposals that would pit industry concentration against industry coordination and economies of scale.

Will an incentive-compatible indemnity policy please stand up? Livestock producer willingness to self-protect.

This study evaluates the role of private market signals and conditional indemnity policies in livestock producer willingness to self-protect against disease and invest more in biosecurity. Our focus on Tier 1 swine diseases and U.S. hog producer decision-making is timely and informative for a multitude of current disease discussions. We find biosecurity effort adjusts to economic incentives in private, livestock markets and public, indemnity policies.

Adoption of Secure Pork Supply Plan Biosecurity by U.S. Swine Producers.

There is mounting concern about the negative animal health and supply chain consequences of animal disease outbreaks in the United States. Recent disease outbreaks have drawn attention to the need for additional understanding of biosecurity efforts to reduce disease frequency, spread, and impact. Biosecurity is a key component of the Secure Pork Supply (SPS) Plan designed to provide business continuity in the event of a foreign animal disease outbreak as well as help protect operations from endemic diseases. Core biosecurity recommendations outlined in the SPS Plan are a written site-specific biosecurity plan and implementation of a perimeter buffer area and a line of separation. To-date, no benchmarking of SPS Plan biosecurity implementation has been done. Utilizing data from a 2017 survey of U.S. swine producers, this study shows that SPS Plan biosecurity adoption varies and is affected by how feasible producers believe implementation of each biosecurity practice is on their operation. Furthermore, binomial logit regression analyses indicate producer and operation demographics and producer risk attitudes and perceptions affect biosecurity adoption. Conditional probabilities reveal that adoption of biosecurity practices is overwhelmingly complementary, suggesting that one biosecurity practice likely increases marginal efficacy of another biosecurity practice. The insights this study provides regarding the complexities of biosecurity adoption are vitally important to both educators and policy makers.

Effects of extended-release eprinomectin on productivity measures in cow-calf systems and subsequent feedlot performance and carcass characteristics of calves.

The objective of this study was to estimate the impact of a single injection of extended-release eprinomectin on economically relevant production variables in beef cows and calves as well as subsequent feedlot health, performance, and carcass traits of calves compared with a traditional, short duration anthelmintic. Animals from 13 cooperator herds across seven states were stratified within herd and assigned to one of two treatments; injectable doramectin (DOR; Dectomax; n = 828) or injectable eprinomection (EPR; Longrange; n = 832). Fecal samples were randomly collected from a subset of cows at both treatment and the end of grazing to evaluate fecal egg count (FEC). Continuous and categorical data were analyzed using the MIXED and GLIMMIX procedures of SAS, respectively. Cow treatment body weight (BW) and final BW were not different (P ≥ 0.40) between treatments. There were no differences (P ≥ 0.12) between treatments in cow ADG, change in BW, or body condition scores during the grazing season. While FEC at treatment did not differ (P = 0.18), cows treated with EPR had lower final FEC at the end of the grazing season (P = 0.02) and a greater reduction of FEC over the grazing season (P = 0.01). Calf treatment BW, weaning BW, and ADG did not differ between treatments (P ≥ 0.34). Incidence of pinkeye tended to be less (P = 0.06) for cows treated with EPR but was not different for calves (P = 0.43). Conception to AI, overall pregnancy rates, and calving interval were not different between treatments (P ≥ 0.45). A subset of calves from each herd was sent to Tri-County Steer Carcass Futurity (TCSCF) feedlot for the finishing phase. Calf BW did not differ at initiation of feeding (P = 0.20). While EPR calves tended to be heavier at reimplantation (P = 0.07), final BW and overall ADG were not different between treatments (P ≥ 0.13). Health records indicated lower morbidity for EPR calves (P = 0.05). Carcass performance including HCW, dressing percent, backfat, KPH, REA, YG, were not different between treatment groups (P ≥ 0.12). However, EPR calves had a greater marbling score, greater average quality grade (P < 0.01), and higher proportion of calves that graded average choice or greater (P = 0.03). Results of this study indicate no difference in cow or preweaning calf performance, however, carcass quality in the feedlot phase was improved. Thus, economic analysis indicates opportunities for return on investment if animals treated with EPR have improved health status and/or carcass quality during the feeding phase.

Economic impact of university veterinary diagnostic laboratories: A case study.

Veterinary diagnostic laboratories (VDLs) play a significant role in the prevention and mitigation of endemic animal diseases and serve an important role in surveillance of, and the response to, outbreaks of transboundary and emerging animal diseases. They also allow for business continuity in livestock operations and help improve human health. Despite these critical societal roles, there is no academic literature on the economic impact of VDLs. We present a case study on the economic impact of the Iowa State University Veterinary Diagnostic Laboratory (ISUVDL). We use economic contribution analysis coupled with a stakeholder survey to estimate the impact. Results suggest that the ISUVDL is responsible for $2,162.46 million in direct output, $2,832.45 million in total output, $1,158.19 million in total value added, and $31.79 million in state taxes in normal years. In an animal health emergency this increases to $8,446.21 million in direct output, $11,063.06 million in total output, $4,523.70 million in total value added, and $124.15 million in state taxes. The ISUVDL receives $4 million annually as a direct state government appropriation for operating purposes. The $31.79 million in state taxes in normal years and the $124.15 million in state taxes in an animal health emergency equates to a 795% and 3104% return on investment, respectively. Estimates of the economic impact of the ISUVDL provide information to scientists, administrators, and policymakers regarding the efficacy and return on investment of VDLs.

Assessment of the economic impacts of porcine epidemic diarrhea virus in the United States.

Porcine epidemic diarrhea virus (PEDV), which first emerged in the United States in 2013, spread throughout the U.S. hog population. Limited preemptive knowledge impeded the understanding of PEDV introduction, spread, and prospective economic impacts in the United States. To assess these impacts, this article reviews the timeline of PEDV in the United States and the corresponding impacts. PEDV is a supply-impacting disease and is not demand inhibiting, as pork demand remained strong since PEDV first appeared. Pig losses reached significant levels during September 2013 through August 2014, with the majority of pork production impacts occurring in 2014. PEDV had differing impacts for subsectors of the pork industry. A budget model demonstrates that producers could have had pig losses and decreases in productivity proportionally smaller than price increases, resulting in net returns above what was expected before the major outbreak of PEDV. Previous literature is reviewed to identify the potential main industry beneficiaries of the PEDV outbreaks in the United States. As a result of reduced volumes of available pig and hog supplies, reductions in annual returns likely occurred for packers, processors, distributors, and retailers. In addition, pork consumers who experienced reduced-supply-induced pork-price increases were likely harmed directly by higher prices paid for pork and indirectly as prices of competing meats were also likely strengthened by PEDV. This article also identifies future considerations motivated by the appearance of PEDV in the United States, such as discussions of industry-wide efficiency and competitive advantage, the future role of PEDV vaccines, enhancement in biosecurity measures, and consumer perceptions of food safety and insecurity.