According to the WUR . report

Fipronil damage amounts to 33 million euros

24 August 2017 - Bart-Jan van Zandwijk - 1 reaction

The damage caused by the fipronil crisis is so far estimated at €33 million. This is reported by Wageningen Economic Research on 23 August in the report: 'First indication of economic consequences of the fipronil affair for the poultry sector'. 

The poultry sector itself estimated the damage at €50 million. This means that the damage estimated to date appears to be lower, but this will increase due to a lot of consequential damage. An example of this is reputational damage and damage to surrounding companies in the chain, such as egg packing stations and propagation companies. 

33

million

euros is the estimated damage

The total damage is estimated at €33 million. For a company, the size of 1 full-fledged worker, the damage quickly amounts to €80.000 to €320.000 per company. That is why the damage varies greatly from company to company.  

Damage due to blockage: €16 million
These costs are reasonably easy to estimate. There are about 200 companies that have used fipronil. The damage from blocking these farms, where eggs had to be destroyed, is estimated at €16 million. The damage varies from €1 to €2 per hen. At organic farms, that number is slightly higher, at €3 per hen. However, these amounts only give an indication of the actual damage. 

Damage caused by clearing or moulting: €17 million
In addition, the sector suffers damage from the measures to be taken, such as moulting or clearing. Every company gets a choice. For these companies, the damage is estimated at €17 million. That is then subdivided into €9 million for culling and €8 million for moulting. 

For blocking and culling the animals, the costs are estimated at €4,50 to €11,50 per hen, at 60 weeks of age. If the animals are younger, the costs are higher. For blocking and moulting the hens, the costs are approximately €2,50 to €6 per hen. This also depends on the farming system. 

Image damage: unknown
There is also talk of reputational damage. This can be very large, because 60% to 65% of Dutch eggs are exported. The damage to the other chains in the sector cannot yet be calculated. This concerns farms, egg packing stations and breeding companies. The companies also suffer damage due to the disruption of the supply and discharge flows. 

Second toxic substance found

It was agreed on Wednesday 16 August that the data available at that time would be updated one month later. 

Amitraz encountered
In addition to fipronil, a second toxic substance has now also been found in the pesticide against red mites. It concerns the substance amitraz. At present, the drug is said to have been used at 7 farms, including 5 poultry farms, 1 calf farm and 1 mixed farm with calves and poultry.

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Comments
1 reaction
Mark van der Lee 25 August 2017
This is a response to this article:
[url=http://www.boerenbusiness.nl/rss/algemeen/ artikel/10875660/schade-fipronil-loops-op-tot-33-million-euro][/url]
Of course, entrepreneurs suffer. Those are the hard $$$.
"There is also talk of reputational damage." As if that matters. With an export share of 2/3, the Dutch egg sector knows what they stand for: they can win back their customers and, more importantly, their trust with cap in hand. Other providers have taken over positions and are doing their utmost to retain those new customers. The real bill is yet to be made...
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