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Banning subtherapeutic antibiotics in U.S. swine production: a simulation of impacts on industry structure

Author

Listed:
  • Michael G. Hogberg

    (AgriStrategies, Inc., 17310 Wright Street, Suite 203, Omaha, NE 68130)

  • Kellie Curry Raper

    (Department of Agricultural Economics, Oklahoma State University, Stillwater, OK 74078)

  • James F. Oehmke

    (Department of Food, Agriculture and Resource Economics, Michigan State University, c|o 202 Agriculture Hall, East Lansing, MI 48823)

Abstract

Recent discussions of a subtherapeutic antibiotic ban in U.S. livestock gives rise to much speculation regarding industry impacts. Swine producers are heterogeneous; thus, a ban on subtherapeutic antibiotics could affect producers of different sizes, cost structures, different production systems and management styles differently. The authors combine average cost data with physical production data to simulate the impact of a subtherapeutic antibiotics ban on high, middle, and low-cost producers in different types of swine production operations. Their results suggest that although economies of scale would still be important, the ban would potentially limit or reduce economies of scale in the swine industry. [JEL Codes: L11, Q12, Q13]. © 2009 Wiley Periodicals, Inc.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:agribz:v:25:y:2009:i:3:p:314-330
    DOI: 10.1002/agr.20204
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    References listed on IDEAS

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    1. Miller, Gay Y. & Liu, Xuanli & McNamara, Paul E. & Bush, Eric J., 2005. "Farm-Level Impacts of Banning Growth- Promoting Antibiotic Use in U.S. Pig Grower/Finisher Operations," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 23(2).
    2. McBride, William D. & Key, Nigel D., 2003. "Economic And Structural Relationships In U.S. Hog Production," Agricultural Economics Reports 33971, United States Department of Agriculture, Economic Research Service.
    3. Hayes, Dermot J. & Jensen, Helen H., 2003. "Lessons from the Danish Ban on Feed-Grade Antibiotics," Choices, Agricultural and Applied Economics Association, vol. 18(3).
    4. Liu, Xuanli & Miller, Gay Y. & McNamara, Paul E., 2005. "Do Antibiotics Reduce Production Risk for U.S. Pork Producers?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(03), December.
    5. Mark A. Wade & Andrew P. Barkley, 1992. "The economic impacts of a ban on subtherapeutic antibiotics in swine production," Agribusiness, John Wiley & Sons, Ltd., vol. 8(2), pages 93-107.
    6. Hayes, Dermot J. & Jensen, Helen H. & Backstrom, Lennart & Fabiosa, Jacinto F., 2001. "Economic Impact Of A Ban On The Use Of Over The Counter Antibiotics In U.S. Swine Rations," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 4(01).
    7. Brorsen, B. Wade & Lehenbauer, Terry & Ji, Dasheng & Connor, Joe, 2002. "Economic Impacts of Banning Subtherapeutic Use of Antibiotics in Swine Production," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(03), pages 489-500, December.
    8. James M. MacDonald & Michael E. Ollinger, 2000. "Scale Economies and Consolidation in Hog Slaughter," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 334-346.
    9. Jayson L. Lusk & F. Bailey Norwood & J. Ross Pruitt, 2006. "Consumer Demand for a Ban on Antibiotic Drug Use in Pork Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1015-1033.
    10. Mathews, Kenneth H., Jr., 2001. "Antimicrobial Drug Use And Veterinary Costs In U.S. Livestock Production," Agricultural Information Bulletins 33695, United States Department of Agriculture, Economic Research Service.
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    Citations

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    Cited by:

    1. Hollis, Aidan & Ahmed, Ziana, 2014. "The path of least resistance: Paying for antibiotics in non-human uses," Health Policy, Elsevier, vol. 118(2), pages 264-270.

    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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