Three Things to Know
Free-roaming dogs pose a significant challenge in North Macedonia, as evidenced by the 6 to 10 dog bites reported monthly in just one municipality. Despite this pressing issue, existing shelters are operating at near-capacity. To determine the feasibility of constructing a new shelter, researchers conducted a financial and socio-economic cost-benefit analysis.
While the shelter itself may not be financially profitable, it offers substantial economic benefits to society, such as reduced costs associated with dog bites, traffic accidents, and diseases.
The researchers suggest two potential funding models: a donation-based approach or a public-private partnership where the municipality provides initial funding and a private operator manages the shelter.
The Full Picture
Free-roaming dogs, often abandoned or relinquished due to illness, age, housing changes, or behavioral issues, contribute to growing stray populations. Past practices like mass euthanasia have largely been replaced by CNVR (Collect, Neuter, Vaccinate, and Return) initiatives and shelter-based care. Yet, many shelters are struggling with overcrowding, limited funding, and operational inefficiencies. Despite adoption efforts, many dogs are euthanized due to space and resource constraints.
This study, titled “Financial and Socio-Economic Effects of Investment in the Context of Dog Population Management,” assesses the financial and societal benefits of building a new animal shelter in North Macedonia’s Vardar Planning Region (VPR). The study uses a cost-benefit analysis (CBA) to determine the financial and community-level impacts of this investment.
Background and Current Situation
The Vardar Planning Region (VPR), home to over 154,000 people across nine municipalities (2002 census), grapples with a significant stray dog problem. Urbanization has led to increased food availability for these animals, including garbage and intentional feeding by residents. As a result, stray dogs account for roughly 40% of citizen complaints to public utility companies. In the municipality of Veles alone, dog bite reports range from 6 to 10 per month, incurring over €150,000 (MKD 10.6 million) in fines and court costs over the past five years.
North Macedonia’s Law on the Protection and Welfare of Animals mandates temporary sheltering, vaccination, sterilization, microchipping, and either adoption or release for stray dogs. However, the two active shelters within the VPR have limited capacity (a total of 27 boxes). Both shelters operate at over 90% capacity, with Čaška focusing on adoption and Negotino euthanizing dogs that fail health or socialization assessments.
Municipal stray dog control programs, such as catch-neuter-release initiatives, are inconsistently implemented. Despite marking dogs as part of these programs, ear-tagged dogs are rarely seen outside of Veles. Unregistered shelters, funded by donations, supplement these efforts.
Study Methods
This study employed Cost-Benefit Analysis (CBA) as the primary framework to assess the feasibility of constructing a new animal shelter in VPR. The analysis considered both financial and socio-economic factors, assigning monetary values to non-market impacts (such as, reduced bites) to gauge the project’s overall value to the community.
This analysis made several assumptions about the projected number of dogs in the region, construction and operating costs, potential income for the shelter, and the socio-economic benefits resulting from a reduced stray dog population.
To establish a baseline, researchers also conducted a stray dog population count following the International Companion Animal Management Coalition’s (ICAM) methodology. This data informed the financial and economic impact assessments.
Study Results
Stray Dog Population Assessment
Researchers counted approximately 1,231 stray dogs in urban areas of the VPR in March 2022. The study found higher concentrations of stray dogs in cities like Demir Kapija and Veles compared to rural areas like Lozovo. Additionally, the presence of ear-tagged dogs, primarily in Veles, indicates that population control programs are more active in this area.
Financial Analysis
The study estimates that the animal shelter project will require an initial investment of €366,251 to cover costs such as land acquisition, construction, and equipment. Additionally, the project will incur fixed costs of €94,070 (excluding salaries) and variable costs of €72,000 in its first year of operation.
The shelter’s revenue will be generated through fees charged to municipalities for treating stray dogs and fees for returning lost dogs to their owners (€7 per day). However, the financial analysis indicates that the project is not financially sustainable on its own. The negative net present value (FNPV) of €75,291 and the low internal rate of return (IRR) of 0.57% suggest that the project is not financially viable when socio-economic benefits are not quantified.
Socio-Economic Analysis
The proposed animal shelter project offers several significant socio-economic benefits:
- Reduced Costs from Dog Bites: By effectively managing the stray dog population, the project aims to reduce the number of dog bite incidents. This reduction will lead to substantial savings in medical costs, lost productivity, and legal expenses.
- Reduced Traffic Accidents: A lower stray dog population will also decrease the number of traffic accidents involving dogs, leading to fewer injuries, property damage, and traffic disruptions.
- Reduced Disease Transmission: The project will help reduce the transmission of diseases like leishmaniasis and echinococcosis, which can affect both humans and animals.
Factoring in these benefits and calculating their monetary values, researchers noted that the project demonstrates an economic net present value (ENPV) of €789,916, and an economic internal rate of return (EIRR) of 25.94%. The positive Economic Net Present Value (ENPV) and high Economic Internal Rate of Return (EIRR) indicate that the project will generate significant economic benefits for the Vardar region. Even when considering additional operational costs, such as salaries, the project remains economically viable. Overall, the proposed animal shelter project is a valuable investment that will address public health concerns, improve road safety, and reduce the economic burden associated with stray dogs.
Conclusion
The Vardar Planning Region (VPR) in North Macedonia has a significant stray dog problem. To address this issue, the construction of a new animal shelter is necessary. While the project may not be immediately financially profitable, its socio-economic benefits outweigh the financial costs.
The project could be financed through donations, municipal contributions, or public-private partnerships. A regional company formed by local governments could manage and operate the shelter. Future research could explore additional socio-economic benefits and refine the financial model.
Miscellaneous
Data From Study:
–
Year of Publication:
2022
External Link:
Ćetković J, Žarković M, Knežević M, Cvetkovska M, Vujadinović R, Rutešić S, Beljkaš Ž, Grujić M, Adžić B. Financial and Socio-Economic Effects of Investment in the Context of Dog Population Management. Animals. 2022; 12(22):3176. https://doi.org/10.3390/ani12223176