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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 US pork industry routinely adds antibiotics to rations of weaned pigs both to prevent illness before symptoms emerge and to increase growth rates. The EU is in the process of restricting feed use of antibiotics, and the U.S. is currently reviewing the practice. The strategic issue facing US 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

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 5139.

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Date of creation: 01 Jan 2001
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Publication status: Published in International Food and Agribusiness Management Review 2001, vol. 4 no. 1, pp. 81-97
Handle: RePEc:isu:genres:5139

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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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. 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).
  2. 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.
  3. 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).
  4. 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).
  5. 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.
  6. 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).
  7. 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.

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