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Effects of Marketing Decisions on Net Present Value of Pork Production for Independent and Allied Swine Producers

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  • Yanghoon Song
  • Gay Y. Miller

Abstract

Competitive environments in swine production make management strategies that increase profitability important. An open-coded model to evaluate the economic impact of two marketing strategies is developed for swine finishing operations. Higher profits are realized for a fixed-date marketing strategy in allied production than for a fixed-target-weight marketing strategy in independent production. Producing pigs to weights heavier than the average market weight also increases profits. Shipping pigs over a shortened time from a barn and decreasing time between batches of pigs improves profits if it can be done with a tighter weight distribution of pigs produced.

Suggested Citation

  • Yanghoon Song & Gay Y. Miller, 2002. "Effects of Marketing Decisions on Net Present Value of Pork Production for Independent and Allied Swine Producers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 181-195.
    • Handle: RePEc:oup:revage:v:24:y:2002:i:1:p:181-195.
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00090
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    References listed on IDEAS

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    1. Michael A. Boland & George F. Patrick, 1994. "Measuring Variability of Performance Among Individual Swine Producers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 16(1), pages 75-82.
    2. Theofanis Tsoulouhas & Tomislav Vukina, 1999. "Integrator Contracts with Many Agents and Bankruptcy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 61-74.
    3. Brian P. Cozzarin & Randall E. Westgren, 2000. "Rent Sharing in Multi-Site Hog Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 25-37.
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