Short-Term Economic Impact of COVID-19 on Spanish Small Ruminant Flocks

Abstract

The human pandemic COVID-19 caused by the severe acute respiratory syndrome coronavirus-2 (SARS-CoV-2) started in China in 2019 and has rapidly spread around the world, leading to extreme control measures such as population confinement and industry activity closure. Although small ruminants are not sanitary affected by this virus, the short-term economic impact derived by COVID-19 on Spanish flocks is estimated in this study, using data provided by producers and two major slaughterhouses. Milk prices of dairy goat flocks suffered a substantial drop in April 2020, close to 4.5 cts EUR/liter compared to the previous month. In contrast, the monthly milk prices in sheep remained almost stable during this period, and even increases of more than EUR 6 cts were reported in comparison with the previous year. Nevertheless, economical differences are reported by areas where producers could receive a higher income, close to EUR 0.3 per liter of milk. Global data provided by feedlots affecting 2750 Spanish flocks evidenced a lamb price drop ranging from 16.8% to 26.9% after the pandemic arrival; in line with the data directly reported by a limited sample of producers (ranging from 11.0% to 23.7%). The goat kid meat market also suffered a reduction in prices per kg, near 12.5%; although, for some flocks, losses reached up to 40%. In the same line, 2 slaughterhouses reported a sudden sacrifice drop around 27% for lambs and goat kids sacrifices in April, in contrast with the usual sacrifice figures from the beginning of 2020. Moreover, our study showed a temporary and unexpected retention of lambs and goat kids at farms due to a reduction in animals slaughtered during this period. In conclusion, data evidenced a considerable negative economic impact on Spanish small ruminant flocks, throughout the first 60 days after COVID-19’s pandemic declaration. Further studies are needed to evaluate the long-term economic consequences, in order to establish contingency plans and avoid the collapse of small ruminant industries when a crisis of these characteristics occurs.

One welfare impacts of COVID-19 – A summary of key highlights within the one welfare framework

“…The livestock industry suffered great economic impacts ( Biswal et al, 2020 , Rude, 2020 ), irrespective of whether the actual livestock was affected by the virus directly. For example, a study in Spain reported that, although small ruminants are not sanitary affected by this virus, global data evidenced a lamb price drop ranging from 16.8% to 26.9% and a 12.5% to up to 40% drop in the goat kid meat market ( Vidaurreta et al, 2020 ). Some have also reported that decreased access to pastoral areas due to COVID-19 measures will impact desert locust control, disaster relief or disease control ( Griffith et al 2020 ).…”

“…This had an impact on human wellbeing, animal welfare, and the environment ( Marchant-Forde Jeremy and Boyle Laura, 2020 ). The reduction on processing capacity affected transport, with some animals/hauliers travelling longer distances to plants in operation, live animals kept living for longer periods with an impact on stocking densities and space on farm, leading, for example, to increased heat production and associated reduced environmental factors as well as the need for on farm culling of animals ( Parry, 2020 ; Marchant-Forde Jeremy and Boyle Laura, 2020 ; Vidaurreta et al, 2020 ). Some reported farmers using abortion as a population control measure or inhumane culling methods that would impact animal welfare, such as ventilation shut down ( Hashem et al, 2020 ).…”

“…Simple daily routines, such as walking a dog or caring for livestock have been affected by sickness, social distancing and/or quarantine restrictions ( Bowen et al, 2020 ). Wider issues such as transport, education and training, animal care or safeguarding the average food and feed supply, vital for both people and animals, were and still are being affected ( Marchant-Forde Jeremy and Boyle Laura, 2020 ; Vidaurreta et al, 2020 ; Zhuo et al, 2020 ). World leaders had to prioritise key issues such as food security and livelihoods of the most vulnerable, as well as setting up expert groups to understand and mitigate the pandemic’s impact on society, by improving our understanding on the virus origin, spread and control measures ( EU, 2020 ; CA, 2020 )…”

Meat Production and Supply Chain Under COVID-19 Scenario: Current Trends and Future Prospects

“…The short-term impact of COVID-19 on Spanish small ruminant flock production was investigated (15). To which, the authors observed the sudden impact on meat markets, particularly in small ruminant flocks.…”

Price Fluctuation, Protected Geographical Indications and Employment in the Spanish Small Ruminant Sector during the COVID-19 Crisis

“…Even without a direct effect on health, preliminary data obtained from a limited number of Spanish farms during the confinement showed that this sector suffered a short-term economic impact that resulted in lower milk and meat prices paid to producers, considering that the year 2020 started with high prices for small ruminant milk and meat, following the trend of high prices registered during the last years. [12]. Variation in prices is considered to be a normal aspect of well-functioning markets, but price volatility becomes problematic when price movements are large and unpredictable [13].…”