Impact of farm disease 'slows'

The number of stock market-listed firms warning that the foot-and-mouth outbreak may impact trade has fallen in line with the incidents of the disease, BBC News Online research has revealed.

Seven companies have mentioned the disease in official announcements to UK investors so far this week, compared with a high of 10 reached earlier in the outbreak.

The drop mirrors a fall in the number of farms reporting outbreaks.

The number of daily cases of foot-and-mouth has halved from about 40 two weeks ago to 20, say government experts who predict the disease could be virtually eradicated from the UK by June.

Economic impact

The Institute of Directors (IoD) has warned that a lengthening of the outbreak to the end of July would cost affected firms an average of £125,000 in takings.

The 35% of IoD members who say the disease has hit operations say they have lost £50,000 to the outbreak so far.

The figure, if extrapolated, suggests that the epidemic has cost the UK economy £20bn.

But the IoD admitted that, because its members generally work at smaller companies, the figure is likely to be an overestimate, with £5bn a more realistic figure.

The Centre for Economic & Business Research, a think tank, predicted one month ago that the outbreak will cost the country £9bn.

The Confederation of British Industry last week blamed the epidemic in part for a decision to cut its growth forecast for the UK economy this year to 2.0% from 2.5%.

Travel firms hit

Listed firms which have this week warned that the outbreak had affected trade include British Airways, which on Wednesday said earnings for March would be down by £15m-20m.

The announcement followed warnings last week from transport firms BAA and Eurotunnel that the disease was hitting the number of visitors to Britain.

Avis on Tuesday said there were "some signs" that the car hire market had been affected.

And Chepstow Racecourse has revealed that it is in talks with insurers over compensation for five fixtures lost to the outbreak.

Implications abroad

Foreign firms blaming the disease for affecting trade this week included hamburger giant McDonalds, revealing profits down 16%.

Nike, the world's number one shoe maker, on Wednesday warned that rising leather costs, prompted by the disease, could hit profits.

Companies which have benefited from the outbreak include Accles & Shelvoke, a Birmingham-based manufacturer of humane animal killing equipment, which has seen a surge in sales.