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On the Nature and Magnitude of Cost Economies in Hog production

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  • Duvaleix-Tréguer, Sabine
  • Gaigné, Carl

Abstract

In this paper, we assess the impact of farm size on production cost and evaluate the marginal costs and margins by considering that input prices may change with the scale of production. By using French hog farm data, we estimate a system of equations including a feed price function, input demand functions, and an output supply function based on a technology approximated by a combined generalized Leontief-Quadratic form. Our results suggest that the marginal costs are over-estimated when the adjustment of the feed unit prices to a change in farm size is not controlled for.

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  • Duvaleix-Tréguer, Sabine & Gaigné, Carl, 2014. "On the Nature and Magnitude of Cost Economies in Hog production," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182766, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182766
    DOI: 10.22004/ag.econ.182766
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    Cited by:

    1. Sabine Duvaleix-Treguer & Carl Gaigné, 2015. "Producer organizations and members performance in hog production," Post-Print hal-02794642, HAL.
    2. Hennessy, David A. & Zhang, Jing & Bai, Na, 2019. "Animal health inputs, endogenous risk, general infrastructure, technology adoption and industrialized animal agriculture," Food Policy, Elsevier, vol. 83(C), pages 355-362.
    3. Tsakiridis, Andreas & Hanrahan, Kevin & Breen, James & Wallace, Michael & O’Donoghuea, Cathal, 2016. "Feed substitution and economies of scale in Irish beef production systems," 149th Seminar, October 27-28, 2016, Rennes, France 244769, European Association of Agricultural Economists.
    4. Sabine Duvaleix-Treguer, 2018. "Producer organisations in the meat sector," Post-Print hal-01923028, HAL.

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    More about this item

    Keywords

    Livestock Production/Industries; Production Economics;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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