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GDLN Third Seminar Series on Avian and Human Influenza, Compensation Policies, Feb 2007

January 14, 2016

Third Seminar Series on Avian and Human Influenza, Compensation Policies, Feb 2007

1. Introduction by Chris Delgado, WB (4: 36)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Introduction by Chris Delgado, World Bank.

Summary: This session is on compensation issues and good practices in managing Avian Influenza.

2. David Nabarro (5:48)

TitleThird Seminar Series on Avian and Human Influenza.David Nabarro, Senior UN System Influenza Coordinator on the Fourth International Avian Influenza Conference in Bamako, which Highlighted Good Practices in Compensation for Enhanced Control of Highly Pathogenic Influenza in Developing Countries

Summary: There are significant challenges in encouraging communities to report Avian Influenza, and ensure that the necessary actions are taken to control the disease. There must be compensation for birds/properties as result of control measures.

3. Intro Panel (1:34)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Christopher Delgado, World Bank, Introduces Panelists  

4. Alain Dehove (3:55)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Presentation by Dr. Alain Dehove, Coordinator, World Animal Health & Welfare Fund, OIE.

5. Anni McLeod (21:26)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Enhancing Control in Developing Countries through Compensation Issues and Good Practice. Anni McLeod, Senior Policy Officer, FAO.

Summary: Compensation encourages early reporting of disease outbreaks and compliance with culling orders. Before conducting compensation it is advisable to divide systems in two types: large commercial systems and smallholder and backyard systems and consider the following: Compensate an appropriate amount; ensure a short interval between reporting, culling, and payment; and plan for considerable advance preparation. Legislation must spell out rights and responsibilities of individuals and state actors; Prior agreement among stakeholders on who, when, how, and how much would be compensated is critical. There are different types of losses: Direct losses (birds destroyed, cost of disinfection/disposal); consequential losses such as impact of movement controls and price declines and indirect losses including lost input sales or lost tourism, are typically not compensated. When determining compensation rates it is important to set relevant categories in advance and to develop a database of eligible parties for a rapid response. Compensation rates should be >50 percent and ideally between 75 and 90 percent of the market value. Indicators of success include: reduced disease spread and reduced livelihoods distress related to culling.

6. Vietnam, ministry of agriculture (4:30)

TitleGDLN: Third Seminar Series on Avian and Human Influenza.Vietnam, Ministry of Agriculture. Vietnam Policy for AI Outbreak. Nguyen Thanh Son, Deputy Director Livestock Production Department, Ministry of Agriculture and Rural Development, Vietnam.

Summary: Risk sharing between the government and farmers is a key principles of Vietnam’s AI strategy. Some of the lessons learned include the need for a medium- and long-term national compensation policy, and timely payment (funds should be adequate and readily available) of farmers. The government recommends increasing the compensation rate to 75 percent of market value, and enhancing monitoring systems to improve transparency.

7. Romania (10:44)

TitleGDLN: Third Seminar Series on Avian and Human Influenza.Romani’s Response to the AI. Sorkin Chelmu, Romania, Ministry of Agriculture.

Summary: Owners of culled birds were registered and compensated through funds from the state budget. The amount paid was established by the Assessment Commission. Lessons learned were the following: i) keeping the population fully informed helps to avert rumors and unnecessary panic; ii) cooperation and collaboration between institutions at the central and local levels is essential; and iii) excessive media coverage can have negative effects. Conclusions: Given the source of the virus, new centers of contagion of AI are always possible. Romania, which is known for biodiversity of bird species registered the most outbreaks of AI.

8. Discussion (13:44)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Discussion on the Importance of a Database in AI Preparedness. Sorin Chelmu, Secretary General, Ministry of Agriculture, Romania

Summary: The discussion centers on compensation and the importance of having a database of birds culled for better preparedness, particularly for small farms. Nigeria has an accurate database of total farmers affected, total birds culled, total compensation paid to each farmer in commercial, semi-commercial, and rural poultry settings. Romania, on the other hand, has an accurate database for poultry population in every area, especially high-risk ones and continuously monitors and gathers data. Nigeria stopped restocking farms with birds because the program was expensive and difficult to sustain on a long-term basis. In Vietnam, the World Bank–financed Ministry of Agriculture project provides farmers with technical support and biosecurity measures to improve farming practices. In Nigeria, voluntary and religious organizations, NGOs, and market leaders at all levels play an important role in disseminating information on issues and concerns. Romania’s National Association of Poultry Breeders have worked alongside authorities to improve communication with poultry owners and to regain consumer confidence in poultry meat.  A reasonable compensation rate of 75 to 90 percent of market price is reasonable. The rate must be attractive but must not encourage over-reporting. Farmers must trust that government will pay, therefore government must (i) determine a timeframe for payment upfront, (ii) communicate that to farmers, and (iii) comply with it.

9. NIGERIA (5:49)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Nigeria’s Experience with AHI Related Compensation. Dr. Mohammed Saidu, Component Coordinator, Avian Flu Animal Health, Nigeria.

Summary: When H5NI was confirmed in 2008, the Government of Nigeria immediately announced a flat compensation rate to relieve farmers with culled birds. The challenge was that the flat rate could lead to concealment as some considered it insufficiently attractive. Lessons learned were the following: timely and transparent payment of compensation is essential; compensation rate must be based on prevailing market prices, cost of production, type, and age; and rates must be uniform throughout the country to prevent movement of poultry to areas where higher rates are paid.

10. KENYA (0:56)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Kenya’s AI Preparedness.

Summary: Kenya has not had any outbreak of AI. It will cull and compensate farmers if outbreak occurs. Plans for a compensation mechanism are ongoing through a FAO project.

11. INDONESIA (6:37)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Indonesia’s AI Experience.

Summary: Compensation is a key piece in Indonesia’s AI control puzzle, but it must be in conjunction with other aspects as the budget is limited. Compensation for Indonesia’s 1.3 billion birds could get very expensive very quickly.

12. Final Remarks (21:54)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Final Remarks by Moderator and Speakers.

Summary: Romania has taken measures to improve biosecurity in poultry farms and to modernize technological capabilities. It will continue to research on migration routes of migratory birds and to carefully analyze how the virus spreads. In Nigeria, the issue of poultry movement control is important. Indonesia has emphasized the need to make administration of the compensation policy simpler. Culling and compensation are a step-by-step process requiring careful setting of targets and sticking to them, and measures for rehabilitation other than compensation should be included. There is need for uniformity of vision on timeliness, transparency, rates and percentages of birds to be compensated. More work is needed on how movement control is linked with compensation; and on sustainable compensation funds where the private sector is involved to compensate smallholders. To reduce time between culling and compensation it is essential to ensure coordination between the ministries of livestock and finance, and to engage the local community. A bottom up approach is best while letting local banks pre-finance, thus shifting risk from local farmers to financial entities, which are reimbursed by the state government.

13. CLOSING (5:34)

TitleGDLN: Third Seminar Series on Avian and Human Influenza. Closing Remarks.

Summary: The constant theme of the conference is preparedness. There is need for: appropriate legislation for control of animal diseases; agreement and consensus with people all along the value chain on rights and responsibilities of governments; widespread awareness of dangers of the disease; procedures for implementation of culling and compensation; databases; funding channels; agreements on procedures; and knowledge of who to compensate, how to compensate, and when.