IDEAS home Printed from https://ideas.repec.org/p/ags/aaea04/19952.html
   My bibliography  Save this paper

Variability In Growth, Pig Weights And Hog Marketing Decisions

Author

Listed:
  • Huang, Haixiao
  • Miller, Gay Y.

Abstract

Variability in pig growth is an intrinsic characteristic of swine production. The optimal marketing strategies are identified to minimize the negative economic impact of variability for a typical all-in-all-out swine finishing facility using a recent pricing matrix and data featuring swine production in the Midwestern region. Our results show that compared with marketing all pigs from a 1,020 head barn on the same day, marketing pigs in six truckloads on different dates as groups of pigs grow to more optimal size significantly improves the profitability of production as variability increases. This finding is in line with recent producer response to new pricing matrices that prove stronger price incentives for marketing more uniform pigs. We also find that studies on optimal marketing strategies without taking into account variability in pig weights can result in exaggerated optimal marketing weights and profits of production. Growth variability management and marketing strategies continue to be essential to the economic viability of the swine industry.

Suggested Citation

  • Huang, Haixiao & Miller, Gay Y., 2004. "Variability In Growth, Pig Weights And Hog Marketing Decisions," 2004 Annual meeting, August 1-4, Denver, CO 19952, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:19952
    DOI: 10.22004/ag.econ.19952
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/19952/files/sp04hu06.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.19952?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Roka, Fritz M. & Hoag, Dana L., 1996. "Manure Value and Liveweight Swine Decisions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(1), pages 193-202, July.
    2. Roka, Fritz M. & Hoag, Dana L., 1996. "Manure Value And Liveweight Swine Decisions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(1), pages 1-10, July.
    3. Boland, Michael A. & Preckel, Paul V. & Schinckel, Allan P., 1993. "Optimal Hog Slaughter Weights Under Alternative Pricing Systems," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(2), pages 1-16, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huang, Haixiao & Miller, Gay Y., 2003. "Manure Value, Pricing Systems, And Swine Production Decisions," 2003 Annual meeting, July 27-30, Montreal, Canada 22233, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Ribaudo, Marc & Agapoff, Jean, 2005. "Importance of Cost Offsets for Dairy Farms Meeting a Nutrient Application Standard," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-12, October.
    3. Stonehouse, D. P. & de Vos, G. W. & Weersink, A., 2002. "Livestock manure systems for swine finishing enterprises," Agricultural Systems, Elsevier, vol. 73(3), pages 279-296, September.
    4. Kaplan, Jonathan D., 2001. "Prevention Versus Utilization Of Excess Nutrients From Animal Feeding Operations:The Case Of Managing Nutrient Uncertainty," 2001 Annual meeting, August 5-8, Chicago, IL 20533, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Huang, Wen-Yuan & Magleby, Richard S. & Somwaru, Agapi, 2001. "The Economic Impacts Of Alternative Manure Management Regulations On Hog Farms In The Heartland: An Individual-Farm Analysis," 2001 Annual meeting, August 5-8, Chicago, IL 20676, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Nene, Gibson & Azzam, Azzeddine M. & Schoengold, Karina, 2009. "Environmental Regulations and the Structure of U.S. Hog Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49395, Agricultural and Applied Economics Association.
    7. 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(2), pages 1-15, December.
    8. Leen, Frederik & Van den Broeke, Alice & Aluwé, Marijke & Ludwig, Lauwers & Sam, Millet & Jef, Van Meensel, 2017. "Simulation Modelling To Provide Insights Into The Optimization Of Delivery Weights Of Finisher Pigs," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261272, European Association of Agricultural Economists.
    9. 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(1), pages 1-14, April.
    10. Fleming, Ronald A., 1998. "Using Setback Requirements As An Economic Incentive To Reduce Livestock Waste Odors," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20838, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Greer, Heather C. & Trapp, James N., 2000. "Impact Of Alternative Grid Pricing Structures On Cattle Marketing Decisions," 2000 Conference, April 17-18 2000, Chicago, Illinois 18926, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    12. Sara Rodríguez & Lluis Plà & Javier Faulin, 2014. "New opportunities in operations research to improve pork supply chain efficiency," Annals of Operations Research, Springer, vol. 219(1), pages 5-23, August.
    13. Beckman, Jayson F. & Livingston, Michael J., 2012. "Effects of Manure Use and Use Restrictions on Variable Production Costs and Net Incomes for U.S. Corn Producers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(1), pages 1-15, February.
    14. Parsons, Jay R. & Hoag, Dana L. & Koontz, Stephen R., 2001. "Economics Of Variable Swine Growth," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36082, Western Agricultural Economics Association.
    15. Jeffrey Ohlmann & Philip Jones, 2011. "An integer programming model for optimal pork marketing," Annals of Operations Research, Springer, vol. 190(1), pages 271-287, October.
    16. Leen, Frederik & Van den Broeke, Alice & Aluwé, Marijke & Lauwers, Ludwig & Millet, Sam & Van Meensel, Jef, 2018. "Stakeholder-driven modelling the impact of animal profile and market conditions on optimal delivery weight in growing-finishing pig production," Agricultural Systems, Elsevier, vol. 162(C), pages 34-45.
    17. Poray, Michael C. & Gray, Allan W. & Boehlje, Michael, 2002. "Evaluation of Alternative Coordination Systems Between Producers and Packers in the Pork Value Chain," Staff Papers 200386, Purdue University, Department of Agricultural Economics.
    18. Leuck, Dale J. & Zering, Kelly D., 2003. "Manure Handling Costs And The Competitiveness Of Pork Production," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35061, Southern Agricultural Economics Association.
    19. Parsons, Jay R. & Hoag, Dana L. & Frasier, W. Marshall & Koontz, Stephen R., 2002. "Variable Growth Impacts On Optimal Market Timing In All-Out Production Systems," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36610, Western Agricultural Economics Association.
    20. Tomislav Vukina, 2003. "The Relationship between Contracting and Livestock Waste Pollution," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 66-88.

    More about this item

    Keywords

    Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea04:19952. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.