As the bluetongue disease spreads, are you prepared for the financial fallout?
By Robert Blair, Partner and ARA specialist
As the bluetongue disease continues to spread, the recent declaration of a ‘restricted zone’ across Norfolk and Suffolk, following an increase in cases, has raised concerns for farmers in neighbouring Cambridgeshire.
With cases detected at five sites, the Department for Environment, Food and Rural Affairs (Defra) has implemented strict restrictions on the movement of livestock.
As the disease poses a growing threat to livestock, farmers must understand not only the health risks but also the financial implications for their businesses and how to overcome these challenges.
The potential impact of bluetongue on farms
Bluetongue disease, spread by midges, primarily affects cattle, goats, sheep, and camelids, such as llamas and alpacas.
While there is no risk to humans and products from infected animals, including meat and milk, are safe, the disease can impact farm productivity.
Affected livestock may experience symptoms such as fever, swelling, and reduced milk yield, with severe cases proving fatal.
The immediate restrictions imposed by Defra require farmers in Norfolk and Suffolk to avoid unnecessary movement of animals, and these limitations could soon affect neighbouring counties like Cambridgeshire.
For farmers, the movement restrictions have serious financial consequences.
Livestock sales, transportation, and even access to slaughterhouses may be limited, which can disrupt normal farm operations and cash flow.
The increased costs of managing livestock within the restricted zone and following new licensing requirements will also add pressure to already tight margins.
Financial implications of movement restrictions
Defra’s restrictions mean that farmers within the affected areas cannot move susceptible animals without a specific licence, except under certain conditions, such as moving animals to designated abattoirs.
However, the limited movement opportunities will undoubtedly affect the timing of livestock sales, potentially leading to a backlog of animals on farms.
For businesses dependent on regular turnover, delays in processing or selling livestock can lead to a strain on cash flow, requiring careful financial management.
Farmers may also face additional costs related to veterinary care, increased biosecurity measures, and the need to manage and feed livestock for longer periods.
Transport costs could increase as routes to abattoirs and markets become more complicated under the restrictions, further stretching budgets.
Overcoming financial challenges
While the financial impact of bluetongue and the resulting movement restrictions may seem daunting, there are steps farmers can take:
- Review cash flow management
- Apply for relevant licences and permits
- Explore Government support and grants
- Maintain close contact with vets and industry bodies
Future-proofing your business
While bluetongue is currently concentrated in certain regions, the rising temperatures and increased midge activity mean that the disease could spread further across the UK.
Farmers must take steps to future-proof their operations against ongoing or future outbreaks.
For example, farms that rely solely on livestock sales are particularly vulnerable to restrictions like those caused by bluetongue, so they could look at alternative revenue streams, such as direct-to-consumer sales and farm shops as a way of expanding their revenue streams.
Insurance policies tailored to livestock health and disease outbreaks can offer financial protection in the event of significant losses.
Also, preventative measures, such as regular midge control and vaccinations (if available), can help reduce the risk of bluetongue spreading to your livestock.
In the long run, investing in biosecurity will protect your herd and avoid the associated financial risks of disease outbreaks.
Our firm of accountancy experts can help you review cash flow, apply for necessary licences, and explore available support schemes.
If you are worried about the financial impact that the bluetongue disease could have on your business, please contact us today for advice and support.