An ex-post facto research design was used to investigate the economic losses due to LSD. The present investigation was done in the Indian state of Punjab because of its highest bovine productivity (Singh et al., 2021). For computing the economic impact due to LSD, a semi-structured interview schedule was developed for data collection. Data were collected purposively from 100 dairy farms which has witnessed outbreaks of LSD. The socio-behavioural variables like age, education, herd size and practices pertaining to LSD prevention viz. utilization of herbal or homeopathic treatment with type of agents, vaccination, isolation of sick animals, use of antiseptics and cleaning agents and vector control methods were studied. For understanding the dispersion of data, frequency, percentage along with mean and standard error (SE) were calculated. Epidemiological metrics like morbidity, mortality and case fatality rate were estimated. The major thrust of the study was laid on estimation of economic losses and for the said purpose econometric analysis of LSD was done based on production losses (A), reproduction losses (B), treatment costs (C), preventive costs (D) and other costs (E). The total economic impact of LSD (T) was calculated by summation of all the losses and costs in Indian National Rupee (INR) by development of a simple mathematical model which is given below:
$$T = A + B + C + D + E$$
A. Production Losses
The major production loss is due to reduction in milk production and it was estimated per dairy animal per day using the formula given below:
$$A=\frac{Loss of milk per day in farm \left(liters\right) X Duration of disease \left(days\right) X Selling price of milk \left(INR\right)}{Total animals affected in farm \left(in absolute number\right)}$$
The percentage loss in milk production was also calculated using the formula:
$$Loss in milk production \left(\%\right)=\frac{Milk production before disease-Milk production after disease}{Milk production before disease} X 100$$
B. Reproduction Losses
Reproduction losses were challenging to calculate as there was equivocality in the economic figures obtained during the survey. To address the issue and to bring coherence in the economic losses due to reproductive disorders, the methodologies of Kumar et al. (2013) and Deka et al. (2021) were followed with suitable extrapolations in concurrence with the data collected during the survey. Three major reproductive disorders were reported by the dairy farmers viz. anestrus, repeat breeding and abortion due to outbreak of LSD. Therefore, the equation for reproduction losses per animal per day can be written as:
$$B = Losses due to anestrus + Losses due to repeat breeding + Losses due to abortion$$
Individually these losses were calculated on per day basis as:
$$Losses due to anestrus=\frac{\left(FC+TC+LC+ML\right) }{D} X RDAN$$
$$Losses due to repeat breeding=\frac{(FC+TC+LC+CAI+ML)}{D} X RDRB$$
$$Losses due to abortion=\frac{(FC+TC+LC+ML)}{D} X RDAP$$
Where, FC = Feed cost, TC = Treatment cost, LC = Labour cost, ML = Milk loss, CAI = Cost of extra artificial inseminations, D = Number of days for which animal was affected with LSD, RDAN = Reproductive days lost due to anestrus, RDRB = Reproductive days lost due to repeat breeding, RDAP = Days for which animal was pregnant or days from conception to abortion. FC, TC, LC, CAI and ML corresponds to the total losses or expenditure incurred in these heads during the entire course of the disease.
The expenditure incurred on feed, treatment and labour in one month constitute the net capital loss in one month due to reproductive failures. Milk loss may be excluded on case to case basis in this expenditure because the animal can retain the milk production during reproductive failures as well. However, in certain cases milk loss can be calculated as:
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Direct loss in milk yield because of reproductive failure
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Loss of milk due to elongation of reproductive months i.e. delayed conception due to missed heat increases the calving interval and less number of animals will be in-milk at the certain point of time
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Decreased milk production in next lactation cycle due to the elongation of current lactation
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Incompetence of animal to retain peak milk yield
C. Treatment Costs
Treatment costs consisted of the expenditures made primarily on antibiotics, veterinary consultation and herbal or homeopathic drugs. The treatment costs per animal per day were estimated by the following formula:
$$C =\frac{(Cost of antibiotics + Fee paid for veterinary consultation + Cost of herbal or homeopathic drugs)}{\left(Number of days for which animal was affected X Number of affected animals\right)}$$
D. Preventive Costs
Under the financial head of preventive costs, the expenditures were made on vaccination, antiseptics and cleaning agents, and vector control methods. The preventive costs per animal per day were worked with the formula as under:
$$D =\frac{(Vaccination cost + Cost of antiseptics and cleaning agents + Cost of vector control)}{\left(Number of days for which animal was affected X Number of affected animals\right)}$$
E. Other Costs
For precisely accounting the economic impact of any disease, there are certain hidden costs which are largely neglected. Some researchers term them as opportunity costs and consummate a lump sum amount of these costs into the total cost. However, in the present investigation, these costs are calculated as ‘other costs’ and consists of cost of family labour (FLC), cost incurred on transportation of sick animal (TPC), cost of feeding extra concentrates to sick animals (FCC), cost forfeited due to damaged hides and skins (HSC), reduction in net value or selling price or market value of the animal (SPC) and reduction in draught power of the animal (DPC). These costs were calculated per animal per day as below:
$$E =\frac{(FLC + TPC + FCC + HSC + SPC + DPC)}{\left(D X N\right)}$$
Where, D = Number of days for which animal was affected with LSD and N = Number of affected animals.
The cost of dead animal was calculated based on the primary data collected from the dairy farmers. The average cost of dead animal was calculated by total cost of the dead animals divided by the number of dead animals.