Animal Health1 1 The views expressed in this background paper do not purport to reflect the views of the Minister or the Department of Agriculture, Fisheries and Food. 1 Introduction - globalisation: opportunities and challenges Ireland as a small open economy has benefited enormously from global export trade. Globalisation however has brought both benefits and challenges to Irish farmers and food processors. As globalisation has intensified (in particular, with an increase in agricultural exports from countries in the developing world), Irish farmers and food processors now face additional competitive challenges. At farm level these are reflected in downward pressures on farm-gate returns, decreasing levels of subsidy support and additional pressures to the cost of production associated with increases in farm input costs. Ireland must increasingly compete against agricultural products from a range of other exporting nations, including northern Europe, North America, Australasia and South America. In coming years, therefore, the viability of Irish agriculture will depend, in large part, on the ability of industry to maximise the competitiveness of Irish product. Animal Health in a global trading environment Animal health is a critical contributor to the international competitiveness of agricultural product. Ireland has benefited from its image as a ‘green’ natural grassbased production facility, with a healthy herd of naturally reared animals – supporting access to some important high profile markets. However, whilst good animal health is perceived to deliver safe wholesome food, increasingly Ireland’s position in this regard is subject to challenge – recalling the BSE situation and the feed contamination event of 2008. It is increasingly likely that international competitors will seek to challenge this strong marketing position and Ireland will need to be in a position to bolster marketing claims with robust supporting evidence. The critical role of animal health can be seen to have an impact at two levels. Firstly in the national and international market-place. This is due to the impact (perceived or otherwise) of animal disease on product quality, safety and food security and also to the specific importance of animal health in international trade. Secondly, animal health is a critical contributor to efficiency, profitability and thus competitiveness at individual farm level. Ireland’s current animal health performance Animal health issues may be considered in two broad categories i. Those issues where ‘biosecurity’ is important (in broad terms, this includes diseases such as bovine tuberculosis, bovine brucellosis, infectious bovine rhinotracheitis (IBR), or Johne’s) and of concern to those who ‘neighbour’ or purchase from infected farms, as well as the infected farm itself), and ii. Those diseases where ‘between herd biosecurity’ is generally not the most significant concern, such as mastitis, fertility or lameness and where the ‘problem’ relates to the individual farm itself. Of the ‘biosecure’ diseases, some are currently subject to government-led control with a view to reduction and eradication (such as bovine tuberculosis and brucellosis), whereas others (IBR, BVD, Johne’s disease) are not. In areas of animal health where government is currently involved, there has been some significant progress. An example is the eradication of bovine brucellosis, with 2 the recent recognition of Ireland as being an Officially Brucellosis Free country - and the resolution of the BSE issue. In areas of animal health where government is not currently involved, Ireland would not be considered to be to the forefront of international efforts in achieving international best-practice, either in the adoption of appropriate processes or in measured outputs. The beneficiaries of improvements in animal health Animal health is also a critical contributor to both international competitiveness and on-farm profitability. Among the potential adverse impacts from animal diseases and sub-optimal health2, include: Adverse effects on food safety and human health, with consequent economic costs including increased health service demands, Major national socio-economic consequences, through very serious international trade losses, national market disruption and very serious production losses in the livestock industries, Less significant national/regional socio-economic consequences, and Consequences that mainly affect the industry alone, such as production loss diseases. These impacts represent a gradation of effects. There is substantial ‘public good’ associated with the control of animal diseases that also have serious effects on human health. Conversely, there is little ‘public good’, but substantial ‘private good’, associated with the control of animal diseases, which have consequences that mainly affect the industry alone. Comparative position within EU In considering relative animal health positions of countries, one must seek to evaluate across three distinct categories – i. Assessing positions regarding the high profile global epizootics, ii. Evaluating progress in eradicating a range of what might be termed ‘second order’ diseases, (some of which have public health significance whilst others are primarily production impacting diseases) and iii. The distribution, impacts and responses to underlying endemic diseases, (which are primarily production impacting conditions). Ireland has a relatively enviable animal health position with regard to many of the significant epizootic diseases that occur internationally and even within Europe. Over the years, Ireland has maintained (or quickly regained) freedom from many of these significant epizootics such as Foot & Mouth Disease, Classical Swine Fever, African Swine Fever, Rabies, African Horse Sickness, Avian Influenza, Newcastle disease. Ireland is also fortunate that it is free from brucella in small ruminants (Brucella melitensis), which is a very significant zoonoses throughout many regions of southern Europe. Ireland can point to success in addressing food safety concerns relating to Salmonella typhimurium and Salmonella enteriditis in the egg and poultry industries, 2 www.animalhealthaustralia.com.au 3 to overcoming significant challenges associated with transmissible spongiform encephalopathies in ruminants and in eradicating bovine brucellosis. On a less positive note, progress with regard to control and eradication of bovine tuberculosis remains stubbornly slow, however Ireland is leading international efforts towards a practical solution to the problems presented by an infected protected wildlife reservoir. At farm production level, Ireland faces significant challenges across all species – mainly associated with both clinical and sub-clinical disease relating to udder health, fertility, lameness and numerous viral diseases, (with respiratory, enteric and reproductive manifestations). Attached EU maps, produced in 2008, provide a visual display of the distribution of a number of diseases across the EU. To be updated to reflect decision in Aug 2009 to recognise Ireland, Poland and the Azores as OBF. 4 Response to globalisation among international competitors International competitors have adopted a range of strategies in response to globalisation, including: Leveraging a natural geographic advantage; Reporting transparently on the status of national animal health to support marketing messages Systematically improving national/on-farm animal health status; and Achieving national traceability of livestock product. As two examples, the Netherlands and Australia are considered here. The Netherlands. Efforts towards improved animal health status in the Netherlands are led by GD (Animal Health Services Deventer)3, an organisation founded in 1919 for, and by, Dutch farmers. Now a private company, GD employs more than 180 people, with a turnover in 2005 of €47 million. GD coordinates a large number of animal health programmes, generally on behalf of national commodity boards. The Netherlands is leading international efforts in voluntary animal health programmes, particularly with Johne’s disease in cattle4. Australia. In Australia, Animal Health Australia (AHA)5, a not-for-profit public company established by the Australian, state and territory governments and major national livestock industry organisations manage animal health matters. AHA manages a suite of national programs6 that position Australia as a world leader in terms of its animal health status and systems. Further, industry is a key driver of 3 http://www.gddeventer.com/ As highlighted at the 8th International Colloquium on Paratuberculosis in Copenhagen (14-17 August 2005) (http://www.paratuberculosis.org/proc8/) 4 5 The mission of AHA is to ensure that the national animal health system delivers a competitive advantage and preferred market access for Australia's livestock industries (http://www.animalhealthaustralia.com.au/corporate/company-profile.cfm) 6 Including Animal Disease Surveillance, Emergency Animal Disease Preparedness, Johne’s disease and Animal Health Services 5 change and innovation. Countdown Downunder7 (improving milk quality) and InCalf8 (improving fertility) were each developed and are managed by Dairy Australia9 Lessons from international success Those countries leading international efforts in animal health, particularly those in northern Europe (the Netherlands and Scandinavian countries) and Australasia share a range of factors that have been instrumental in their efforts towards improved animal health, including: Proactive planning Industry-government partnerships Industry funding A focus on continuous improvement Cohesive and integrated industry structures National coordination Coordination of technical efforts Excellence in technical support Planned, focused research Information for improved decision-making Publishing of data to support animal health claims These ‘critical success factors’ are highly relevant to the competitiveness of Irish agriculture and farmers. Challenges – Towards 2020 The significant issues that merit particular attention by way of evaluation include: A. Need to reach an understanding as to the appropriate cost-sharing mechanisms relating to resources engaged in animal health improvements and disease control. This determination can be influenced by current discussions at EU level, in other member states and in other countries relating to the same issue. B. Need for initiatives to seek to minimise the negative impact on productivity and the economic losses associated with both clinical and sub-clinical manifestations of non-regulated diseases. The collaborative approach by government and the range of stakeholders within the ‘value chain’ in the development of Animal Health Ireland (AHI) provides a mechanism by which on-farm productivity and processing efficiency can be maximised. Whilst AHI is designed to address animal health concerns across all species, the reality is that its initial focus will be on bovine diseases, therefore consideration must be given to health issues arising in other species and how best these might be addressed in the short term. 7 Countdown Downunder was established in 1998, in response to EU milk quality requirements (www.countdown.com.au). In 2004, 5.4% of Australian farms exceeded 400,000 cells/ml, in comparison to 20.7% in Ireland during 2005 (all milk recorded herds, based on monthly results) 8 www.incalf.com.au 9 Dairy Australia is a public company, limited by guarantee. Dairy Australia seeks to ‘deliver world’s best service, to achieve the Australian dairy industry’s vision of growing an internationally competitive, innovative and sustainable dairy industry.' This company provides technical expertise and essential services across the whole dairy value chain, from pre-farm and farm activities, through manufacturing to the end products. (www.dairyaustralia.com.au) 6 C. Many existing eradication and control programmes are, both statutorily based, and necessary to ensure that animals and products have international market access. Nonetheless, the range of activities within these programmes need to be assessed on an on-going basis to ensure that they are Maintained as simple as possible, Risk-based, Focussed and targeted, and Non-essential costs are removed from the programmes. D. The challenge to animal and human health from globalisation, climate change, novel or encroaching viruses and other animal or food borne pathogens must be addressed in a coordinated fashion. E. Maximum value must be leveraged from the significant investment and expertise already vested in the DAFF Laboratory Service in the future development on animal health initiatives and research projects. F. Ensure that value is optimised from investments in IT infrastructure. Effective use of data such as, animal health/disease data capture, ‘feed back’ to producers from laboratories, dairy plants, slaughter-plants etc, would enable clients maximise productivity through understanding the causes of economic loss and responding effectively to sub-optimal animal health situations. G. Evaluate the benefits of undertaking appropriate surveillance programmes. These should support on-farm productivity by the early detection of variance in animal health/disease incidence and assist competitiveness by generating animal health data that supports animal and product health and safety claims H. Coordinate investment in appropriate R&D projects to add value and eliminate the potential for waste of resources. I. Evaluate current livestock-farming paradigms to critically assess the extent to which various practices and systems add or take from the overall value. Animal movements are important to animal health. Whilst the movement of animals within the industry is a fundamental necessity, it is universally accepted that ‘animal movement’ introduces additional risk of animal disease. Given the perception that the frequency of animal movements in Ireland is significantly greater than in other countries, it would be prudent to have any such increased risk quantified. Key to dealing with many of these issues is the positioning of animal health as an integral element in the future strategy for the overall sector. This will help integrate its roles in food safety, productivity, R & D and competitiveness into the overall planning process and should also ensure that the views of the diverse internal and external stakeholders are taken on board. December 2009 7