Do Antibiotics Reduce Production Risk For U.S. Pork Producers?
Production risk from live weight variation of market pigs has become a more important concern in U.S. swine production. Packers are concerned about the variation in carcass size because of the demand for standardized cuts and the use of automation in the slaughter process. Swine producers care about standardized pigs because of revenue implications and possible links to animal health and productivity. Pig size variation can be due to various condition and inputs including antibiotics. However, discussions on risk reduction from antibiotic use have generally not been considered. Our work extends previous studies by systematically examining the aspects of production risk reduction and highlights the potential results of banning antibiotics from a risk perspective. Using data from National Animal Health Monitoring System 2000 survey data and PigCHAMP, we identify the relationship between antibiotic use and production risk by an econometric model. Applying production costs for feeder to market pigs and a price matrix, the uncertainty in profits is evaluated. The impacts of risk on the decision making of swine producers are examined under the framework of expected utility and stochastic dominance analysis. Our results show that production risk from weight variability of market hogs is important in determining profits and utility under a pricing system. Production risk (i.e. weight gain variability) is related to the use of sub-therapeutic antibiotics. Swine producers could decrease production risk and enhance utility by adjusting antibiotic use. These results offer some support for optimal use of sub-therapeutic antibiotics.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Meyer, Jack, 1987. "Two-moment Decision Models and Expected Utility Maximization," American Economic Review, American Economic Association, vol. 77(3), pages 421-30, June.
- Davidson, Russell & Duclos, Jean-Yves, 1998.
"Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality,"
Cahiers de recherche
9805, Université Laval - Département d'économique.
- Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
- Davidson, R. & Duclos, J.-Y., 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," G.R.E.Q.A.M. 98a14, Universite Aix-Marseille III.
- 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).
- 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 Archive 5139, Iowa State University, Department of Economics.
- Russell Davidson, 2006. "Stochastic Dominance," Departmental Working Papers 2006-19, McGill University, Department of Economics.
- David E. Sahn & David C. Stifel, 2002. "Robust Comparisons of Malnutrition in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 716-735.
- Lawrence, John D. & Kliebenstein, James, 1995. "Contracting and Vertical Coordination in the United States Pork Industry," Staff General Research Papers Archive 5050, Iowa State University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea03:22026. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.