| In this paper, we evaluated the welfare effects of a hypothetical programme of Johne's disease eradication from the Scottish dairy herd on different stakeholders in the domestic milk market. We undertook the evaluation using a Markov-Chain simulation and applying an economic welfare analysis which takes into consideration the effects of an eradication programme on product price, on output quantity, on cost and on milk yield for given levels of supply and demand elasticities. We found that, following the eradication of the disease, milk yield per cow increased for all herd sizes in Scotland whereas price and unit cost of milk production fell. Consequently, milk consumers gained around £14.3 million in discounted economic surplus and producers with infected... |
