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Economic analysis of new generation vaccines for control of lumpy skin disease and Rift Valley Fever in South Africa

Mdlulwa, Zimbini, Masemola, Mampe, Chaminuka, Petronella, Madyo, Sipho
Agrekon 2019 v.58 no.1 pp. 125-140
Monte Carlo method, Rift Valley fever, decision making, disease control, disease outbreaks, economic analysis, farmers, issues and policy, livelihood, livestock, livestock diseases, livestock productivity, lumpy skin disease, milk production, research and development, technology, vaccination, vaccines, veterinary medicine, South Africa
Livestock disease outbreaks in Africa threaten improved animal and human health, increased productivity, and sustainable agricultural livelihoods. Investment into research and development of livestock vaccines has potential to generate new technologies that can benefit the livestock sector and result in control of diseases such as Rift Valley fever (RVF) and lumpy skin disease (LSD). Veterinary research and development efforts have focussed on the development of an improved, combined LSD RVF 2-in-1 vaccine, using new generation technologies. Through collaborative, multidisciplinary research, it is possible to create solid economic arguments that guide policy and investment on strategies for controlling livestock diseases. Using Monte Carlo simulation through various vaccination scenarios this paper evaluates ex-ante the costs and benefits of an LSD RVF 2-in-1 vaccine on dairy production in South Africa. Simulations over a 15 year period yielded positive net present values at R830 641 and R13 954 073 with internal rate of return at 32.4 per cent and 32.9 per cent for small scale and large scale operations, respectively. The results of the study provide decision makers with solid economic arguments regarding the potential benefits of investing in new generation vaccines for control of RVF and LSD. Continuous awareness on the importance of the vaccines, particularly for small-scale farmers is recommended for improved livestock productivity.