The impact of the fipronil crisis on the financial performance of Dutch laying hen farms
- PMID: 33228802
- PMCID: PMC7686768
- DOI: 10.1186/s13071-020-04458-8
The impact of the fipronil crisis on the financial performance of Dutch laying hen farms
Abstract
Background: Illegal use of fipronil as an insecticide in 2017 has caused substantial damage to Dutch laying hen farms. We assessed how the fipronil crisis has affected the financial performance of affected farms as well as unaffected farms. While affected farms faced culling their flocks and lost revenue, unaffected farms benefitted from temporary high egg prices.
Methods: A three-step normative modelling approach is taken using financial statements and a partial budget. The estimations are for a 50,000 laying hen farm facing the fipronil crisis for 5 months. First, a baseline is created by generating an income statement of this laying hen farm representing a 'normal year'. Second, incremental costs and revenue as a result of the fipronil crisis are estimated. Third, the baseline income statement is updated with the outcomes of the partial budget. This results in two additional income statements that report the net operating result of this farm being unaffected and affected by the fipronil crisis.
Results: While in a normal year this average-sized farm has a net operating result of around 18,000 euros, profitability was estimated to be - 369,000 euros and + 169,000 euros for the affected and unaffected farm due to the crisis respectively. For affected farms, impacts were especially high as there was no government compensation or insurance.
Conclusions: As Dutch farms typically operate as independent family farms, there was also no compensation from other chain actors. The affected farms therefore likely have faced financial distress and have had to increase debt or use their financial reserves for household consumption and restarting the business. Outcomes contribute to discussions around liability claims and cost-benefit assessments of measures to improve the chain food safety and rapid alert systems.
Keywords: Family farm; Financial distress; Financial performance; Fipronil crisis; Laying hen; Partial budget.
Conflict of interest statement
The authors declare that they have no competing interests.
Figures
Similar articles
-
Prevalence of mites and their impact on laying hen (Gallus gallus domesticus) farm facilities in Egypt, with an analysis of deltamethrin residues in eggs and tissue.Avian Pathol. 2018 Apr;47(2):161-171. doi: 10.1080/03079457.2017.1388500. Epub 2017 Nov 9. Avian Pathol. 2018. PMID: 28975807
-
Quantitative exposure assessment and risk characterization for fipronil residues in laying hen eggs.J Food Sci. 2022 Jun;87(6):2775-2788. doi: 10.1111/1750-3841.16161. Epub 2022 May 9. J Food Sci. 2022. PMID: 35534087
-
Transfer and risk assessment of fipronil in laying hen tissues and eggs.Sci Total Environ. 2024 Jul 1;932:172811. doi: 10.1016/j.scitotenv.2024.172811. Epub 2024 May 1. Sci Total Environ. 2024. PMID: 38701918
-
Risk Factors Associated With Salmonella in Laying Hen Farms: Systematic Review of Observational Studies.Avian Dis. 2015 Jun;59(2):291-302. doi: 10.1637/10997-120214-Reg. Avian Dis. 2015. PMID: 26473681 Review.
-
Intervention strategies for Salmonella enteritidis in poultry flocks: a basic approach.Int J Food Microbiol. 1994 Jan;21(1-2):145-54. doi: 10.1016/0168-1605(94)90207-0. Int J Food Microbiol. 1994. PMID: 8155471 Review.
Cited by
-
Rapid response screening for emerging zoonotic pathogens, barriers and opportunities: A study for enhanced preparedness of the Netherlands.One Health. 2023 Feb 14;16:100507. doi: 10.1016/j.onehlt.2023.100507. eCollection 2023 Jun. One Health. 2023. PMID: 36852195 Free PMC article.
-
Multi-Criteria Decision Analysis in Food Safety Risk Management: The Case of Dioxins in Baltic Fish.Foods. 2022 Apr 6;11(7):1059. doi: 10.3390/foods11071059. Foods. 2022. PMID: 35407145 Free PMC article.
-
Interactions between risk assessors and risk managers during three major food incidents in Europe.J Food Sci. 2021 Aug;86(8):3611-3627. doi: 10.1111/1750-3841.15824. Epub 2021 Jul 15. J Food Sci. 2021. PMID: 34268783 Free PMC article.
-
Temporal Dynamics of Cloacal Microbiota in Adult Laying Chickens With and Without Access to an Outdoor Range.Front Microbiol. 2021 Jan 28;11:626713. doi: 10.3389/fmicb.2020.626713. eCollection 2020. Front Microbiol. 2021. PMID: 33584593 Free PMC article.
References
-
- Munoz-Pineiro MA, Robouch P. Fipronil in eggs: factsheet. Joint Research Centre, European Commission; 2018.
-
- Wageningen Economic Research: De eierketen in beeld (in Dutch). 2019. https://www.agrimatie.nl/ThemaResultaat.aspx?subpubID=2232&themaID=2270&.... Accessed 11 May 2020.
-
- Meuwissen Miranda PM, Van Andel Alex LA, Van Asseldonk Marcel APM, Huirne Ruud BM. Eliciting processing industry damage from feed crises. Br Food J. 2009;111(8):878–892. doi: 10.1108/00070700910980982. - DOI
MeSH terms
Substances
LinkOut - more resources
Full Text Sources
Research Materials