Is there an economic incentive for farmer participation in a uniform health standard for aquaculture farms? An empirical case study.

The growth of aquaculture, both in terms of the volume of production and the diversity of species and production systems, has created challenges for effective animal health policies. This paper presents results of a case study of the costs to a sector of U.S. aquaculture in which producers raising fish that are sold and shipped live contend with widely differing requirements for testing and certification of aquatic animal health. These are compared to related costs under a proposed uniform standard. The uniform standard scenario assumes adoption by the majority of the industry of a non-regulatory surveillance and biosecurity program with veterinary oversight, as an alternative to the current complex regulatory environment based on administrative political districts rather than on risk of disease transmission. Farm-level cost data were obtained through a survey that captured 74% of the national volume of baitfish and sportfish production in the U.S. Reflecting recent joint industry/federal efforts to develop a non-regulatory national U.S. program to set and verify a uniform standard for aquatic animal health, seven scenarios were modelled to determine the potential benefits and costs of such a program. Results showed that the net benefit of a uniform standard, if adopted nationally, could result in an estimated annual savings of $6.6 million to the U.S. baitfish and sportfish industry, and an average savings of $81,175/farm (with a range of $17,851/farm to $265,968/farm). Such cost savings provide an incentive for producers to support the program. Moreover, development of a uniform standard has potential to move aquatic animal health policies from the current framework of political administrative units to one based on epidemiological approaches and sound science.