Mycoplasma Bovis and Livestock Insurance: What Farmers Need to Know

Mycoplasma bovis and livestock insurance in NZ. How the disease impacts dairy cattle and what insurance coverage is available. Guide for NZ dairy farmers.

Mycoplasma Bovis and Livestock Insurance

Mycoplasma bovis (M. bovis) was first detected in New Zealand in 2017 and has resulted in government-ordered culling of tens of thousands of dairy cattle. For many affected farmers, the experience revealed significant gaps in their livestock insurance cover.

What Is Mycoplasma Bovis?

M. bovis is a bacterial disease affecting cattle that causes respiratory disease, mastitis, arthritis, and other conditions. New Zealand's government initiated an eradication programme that has involved mandatory culling of infected and exposed herds.

The eradication programme pays compensation, but at government-set rates that often fall below full market value — particularly for elite genetics dairy cows and stud bulls.

The Insurance Gap

Most standard livestock mortality policies are written to pay out when animals die. M. bovis presented a different scenario: animals were being killed (not dying naturally) under government order, as part of a management programme.

Standard mortality cover often did not respond to:

Government-ordered culling of healthy exposed animals

Culling of animals showing disease symptoms (as opposed to dying)

Production losses during de-stocking

What Disease & Illness Cover Provides

Comprehensive disease & illness cover is designed for exactly these scenarios. It typically covers:

Compensation top-up above government payments for ordered culls

Direct disease-related deaths

Veterinary costs for notifiable disease management

Production losses in some comprehensive policies

Recommendations for NZ Dairy Farmers

Check your current policy for M. bovis or notifiable disease coverage — specifically whether government-ordered culling is covered

Get disease & illness cover explicitly — don't assume your farm pack covers it

Value your herd accurately — if government compensation falls short, you need the difference covered

Discuss M. bovis risk with your adviser — FMG and other rural insurers have specific M. bovis endorsements available

The rural insurance advisers we work with are familiar with the NZ M. bovis insurance landscape and can help you ensure you're adequately covered.