Volume 10: Economic Impact and International Trade
3. Impact on the private sector
Assessing the impact on the private sector

3.1 During 1986-96 there was a decline in beef production and consumption in the UK. It is unclear to what extent BSE contributed to this decline, as a variety of factors probably gave rise to an overall downward trend in consumption.

3.2 One approach to assessing the impact of BSE on the private sector is to examine the following areas:

• the fall in beef production;
• the rise in production of substitute products;
• the increases in real resource costs of production; and
• the transitional adjustment costs. ¹

3.3 Part 1 examines market trends and movements in the light of the fall in beef production and consumption and the concurrent rise in production and consumption of substitute products.

3.4 Part 2 examines the increases in real resource costs of production and the transitional adjustment costs by focusing on individual sectors of the beef industry.