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Abstract

Foot and mouth disease (FMD) has caused significant damage to Latin America‟s beef sector through both production losses and limits to international market access. Using a base year of 2001, we utilize historical outbreak data and estimated production losses in select Latin American countries in tandem with a global economic modeling framework to understand what the domestic and international price effects as well as trade effects could have been, had FMD outbreaks in 2001 been prevented. Results show that Uruguay would have benefited most if production losses resulting from FMD would have been mitigated. This study is a first step in understanding the economic implications of an FMD-free Latin America on the world meat and livestock markets.

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