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Economic Impact Of A Ban On The Use Of Over The Counter Antibiotics In U.S. Swine Rations

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Author Info

  • Hayes, Dermot J.
  • Jensen, Helen H.
  • Backstrom, Lennart
  • Fabiosa, Jacinto F.

Abstract

The U.S. pork industry routinely adds antibiotics to rations of weaned pigs both to prevent illness before symptoms emerge and to increase growth rates. The European Union (EU) is in the process of restricting feed use of antibiotics, and the U.S. is currently reviewing the practice. The strategic issue facing U.S. pork producers is whether another food safety dispute with the EU is worthwhile. This paper evaluates the economic impact of such a ban in the U.S. The analysis uses a set of technical assumptions derived from the experience of a similar ban in Sweden and finds such a ban would increase production costs per head between $5.24 and $6.05; net profit would decline $0.79 per head. On the consumer side, the effects of a ban would raise the retail price of pork by 5 cents per pound.

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Bibliographic Info

Article provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.

Volume (Year): 04 (2001)
Issue (Month): 01 ()
Pages:

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Handle: RePEc:ags:ifaamr:34371

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Related research

Keywords: Food Consumption/Nutrition/Food Safety; Livestock Production/Industries;

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References

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  1. Hayenga, Marvin L. & Buhr, Brian L., 1994. "Ex Ante Evaluation of the Economic Impacts of Growth Promotants in the U.S. Livestock and Meat Sector," Staff General Research Papers 11318, Iowa State University, Department of Economics.
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Cited by:
  1. Miller, Gay Y. & Liu, Xuanli & McNamara, Paul E. & Bush, Eric J., 2003. "Producer Incentives For Antibiotic Use In U.S. Pork Production," 2003 Annual meeting, July 27-30, Montreal, Canada 21931, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Algozin, Kenneth A. & Miller, Gay Y. & McNamara, Paul E., 2001. "An Econometric Analysis Of The Economic Contribution Of Subtherapeutic Antibiotic Use In Pork Production," 2001 Annual meeting, August 5-8, Chicago, IL 20633, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Unnevehr, Laurian J. & Jensen, Helen H., 2003. "Industry Compliance Costs: What Would They Look Like in a Risk-Based Integrated Food System," Staff General Research Papers 10163, Iowa State University, Department of Economics.
  4. Michael G. Hogberg & Kellie Curry Raper & James F. Oehmke, 2009. "Banning subtherapeutic antibiotics in U.S. swine production: a simulation of impacts on industry structure," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 314-330.
  5. Liu, Xuanli & Miller, Gay Y. & McNamara, Paul E., 2003. "Do Antibiotics Reduce Production Risk For U.S. Pork Producers?," 2003 Annual meeting, July 27-30, Montreal, Canada 22026, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. McBride, William D. & Key, Nigel D. & Mathews, Kenneth H., Jr., 2006. "Sub-therapeutic Antibiotics and Productivity in U.S. Hog Production," 2006 Annual meeting, July 23-26, Long Beach, CA 21148, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Saitone, Tina L. & Sexton, Richard J. & Sumner, Daniel A., 2013. "What Happens When Food Marketers Require Restrictive Farming Practices?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151268, Agricultural and Applied Economics Association.

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