Socio-economic Impacts of Avian Influenza Outbreaks on Small-scale Producers in Indonesia

Since its first introduction in 2003 until January 2009 highly pathogenic avian influenza (HPAI) was reported in 31 of 33 provinces of Indonesia. In addition, 115 fatal human cases have been reported in the same period and about 11 million chickens had died or been culled. In 2005 alone, about 60% of farms stopped their operations. The objective of this paper is to describe the socio-economic impact of HPAI on small producers in Indonesia. Simultaneous surveys were conducted in three provinces representing low, medium and high incidence areas, with total respondents of 720 farms. Socio-economic information before, during and after the HPAI outbreak were collected. Results indicated that poultry-raising decreased due to HPAI by 25-80% for broiler, 7-93% for layer and 48% for ducks. Overall, the number of farms stopping operations was 30% and in the high incidence area nearly 70%. The proportion of income from poultry for daily household expenditure decreased from 75-91% before to 38-82% after the HPAI outbreak. We observed more loan requests and less saving in the HPAI-infected farms. Direct impact of HPAI was also seen by decrease in expenditures for education and daily consumption in particular in the high incidence farms. The high proportion of income in pre-HPAI infection indicated the poultry enterprise as the main source of income. HPAI caused significant losses in all study areas through high mortality, lower production and lower demand for poultry products. However, levels of social relationship, social networking, social trust, social organization and decision making remained unchanged. To re-establish the poultry enterprise, the best target are low incidence areas that are less densely populated with humans and poultry.