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Desk study on the operation of high value livestock markets - MP0164

We are currently working on a rationalisation of compem=nsation arrangements for animal disease control. Essentially the proposed mechanism will provide for a single compensation rate for all animal diseases, thus developing a more consistent overall approach to compensation. We need to develop a mechanism that can transparently calculate compensation rates for easily definable categories of animal species. compensation for each will be based on an average market price. We are currently looking at avaliable data sources.

We have a specific problem in setting compensation rates for high value animals. Legal advice is that very high valus=e animal needs to be given special consideration. We therefore need to consider introducing different tiers of compensation for pedigree and high value animals to avoid challenges from owners of high value animals under European Community Human Rights legislation. To produce creditable justification for the setting of valuation thresholds, we require a deeper understanding of the high value livestock market.
1- A general background to the way high and very high value animals are valued, the way they are sold (it is our understanding they are hardly ever sold at markets)

2- A more detailed overview of the high value animal market, i.e. the range of values, (are they homogenous or clustered). We need to know the size of the population of high value animals in Great Britain, the distribution of their values and how this has fluctuated over a period of 5 yrs.

3- depending on data sources, ideas for a mechanism that can transparently obtain and use data on high value animals that allows the setting of "reasonable" compensation values for different tiers.

4- Depending on the proce of distribution, we require draft definitions of each price category to enable swift and transparent decisions to be made about which category high value animals should be placed in the event of disease outbreaks.
We are aware that very high value animals rarely do through markets, the identification of creditable sources of this type of information is central to the project and any future work maintaining relevant threshold levels for the different compensation tiers.

5- (Tertary objective, time and budget allowing)
We also require data on minor species such as goat, deer and camelids. They can be susceptible to some of the notifiable diseases for which we pay compensation. We are looking for a data source or calculation method that would provide a realistic and acceptible price to owners of this type of animal. As with the high value livestock market, we are aware that these animals rarely appear at market.
Time-Scale and Cost
From: 2003

To: 2003

Cost: £10,000
Contractor / Funded Organisations
Animal Production              
Livestock Farming              
Sustainable Production