Economic costs of Fusarium Head Blight, scab and deoxynivalenol

Abstract

Fusarium Head Blight (FHB) has led to major economic costs for wheat and barley producers. Grain products and feed grain contaminated with deoxynivalenol (DON) (commonly known as vomitoxin) are subject to Food and Drug Administration advisory limits and as a result end-users place restrictions on their use. This has led to steep price discounts, as well as higher risks for producers and grain merchandisers. Varietal research has led to development of varieties that are resistant or moderately resistant to FHB. Studies indicate combinations of genetic resistance, fungicides and some management practices (combine settings, tillage practices, etc.) can be used to decrease economic costs due to FHB. The purpose of this study was to estimate the economic costs of scab. To do so we developed several economic models, analysed extensive data and conducted surveys of wheat flour millers, barley maltsters, and grain handlers. A detailed assessment of costs indicates the most important costs accrued by the wheat and barley industries were the risk premium paid to induce adoption of DON reducing technologies and the value of yield forgone. These were followed by the direct costs of fungicide, added shipping costs, testing and segregation and discounts.