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Effect of Corn Price on Profitability of Control Vs Phytase Enhanced Diet of Hogs

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  • Atreya, Ajita
  • Vitale, Jeffrey D.
  • Stoecker, Arthur L.
  • Carter, Scott D.
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    Abstract

    Economic Simulation model (SIMETAR) was used to investigate the effect of future corn price on profitability of control and phytase enhanced diet of hogs. The completed simulation model was used to estimate probability distribution for control vs lower excretion diet profitability under different corn prices. Data used was collected from recent field trials in Oklahoma that tested the effect of phytase enhanced diets on reducing phosphorus emission. The results showed that as the market price of corn increases control diet will be more profitable than phytase enhanced diet, given the cost of other remaining feed ingredient is constant for both the diets.

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    Bibliographic Info

    Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46864.

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    Date of creation: 2009
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    Handle: RePEc:ags:saeana:46864

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    Keywords: profitability; SIMETAR; control diet; phytase enhanced diet; swine; Production Economics;

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    1. Yap, Crystal & Foster, Kenneth A. & Preckel, Paul V. & Doering, Otto C., III & Richert, Brian T., 2004. "Mitigating the Compliance Cost of a Phosphorus-Based Swine Manure Management Policy," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), April.
    2. Boland, Michael A. & Preckel, Paul V. & Foster, Kenneth A., 1998. "Economic Analysis Of Phosphorus - Reducing Technologies In Pork Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
    3. Hien, Victor & Kabore, Daniel & Youl, Sansan & Lowenberg-DeBoer, J., 1997. "Stochastic dominance analysis of on-farm-trial data: The riskiness of alternative phosphate sources in Burkina Faso," Agricultural Economics, Blackwell, vol. 15(3), pages 213-221, January.
    4. Boland, Michael A. & Foster, Kenneth A. & Preckel, Paul V., 1999. "Nutrition And The Economics Of Swine Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(01), April.
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