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Decision Making when Salmonella enteritidis is Present in Laying Flocks

Department of Agricultural and Resource Economics University of Maryland, College Park, MD 20742; Phone: (301) 405-1262; FAX: (302) 314-9091

Eric D. Ebel

USDA APHIS, Veterinary Service, SE Task Force 6525 Belcrest Road, Hyattsville, MD 20782

Correspondence: Filmore E. Bender

Current public health concerns and federal regulations have resulted in the imposition of new decision criteria on egg producers. Using the theory of optimal replacement and computer generated egg production budgets, this paper develops rules of thumb to assist egg producers in the task of deciding whether or not to depopulate when Salmonella enteritidis (SE) is present.

This study shows that a firm that is prohibited from selling into the table egg market because of the presence of SE could face a reduction in net income of 47 percent. However, alternatives are explored in a production budget context to indicate ways that a typical firm can reduce the adverse economic impact of the presence of SE.

Finally, this analysis indicates that the newly revised regulations, which permit firms to consider each egg house of a complex separately, provide flexibility to producers to minimize the adverse impact of these regulations.

Key Words: Salmonella enteritidis • economics • food safety • optimal replacement • laying flock