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

  • 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)

Registered author(s):

    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.

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    File URL: http://hdl.handle.net/10.1002/agr.20204
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    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 25 (2009)
    Issue (Month): 3 ()
    Pages: 314-330

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    Handle: RePEc:wly:agribz:v:25:y:2009:i:3:p:314-330
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    1. 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).
    2. Lusk, Jayson L. & Norwood, F. Bailey & Pruitt, J. Ross, 2006. "Consumer Demand for a Ban on Antibiotic Drug Use in Pork Production," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35273, Southern Agricultural Economics Association.
    3. 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.
    4. 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.
    5. 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," Staff General Research Papers 5139, Iowa State University, Department of Economics.
    6. 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).
    7. 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).
    8. Brorsen, B. Wade & Lehenbauer, Terry & Ji, Dasheng & Connor, Joseph, 2002. "Economic Impacts Of Banning Subtherapeutic Use Of Antibiotics In Swine Production," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(03), December.
    9. James M MacDonald & Michael E Ollinger, 2000. "Scale Economies and Consolidation in Hog Slaughter," Working Papers 00-03, Center for Economic Studies, U.S. Census Bureau.
    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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