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Swine Production Networks In Minnesota: Resources For Decision Making

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  • Koehler, Bob
  • Lazarus, William F.
  • Buhr, Brian L.

Abstract

Swine production networks are becoming a significant part of the Minnesota swine industry, with at least 30 production networks in operation as of late 1995. There are probably at least 450 producers involved, representing at least nine percent of the state s sow inventory. Not counted in these numbers are a few other networks involved only in data-sharing or marketing as well as a large number of farmer-to-farmer custom/contract arrangements. We interviewed 20 producers involved in networks. None of the networks we surveyed had been in operation very long, with most in business no more than a year or two. It is too early to predict what their long-term success will be. Most of the respondents seemed pleased with the arrangements so far. An example financial analysis of a 1,400 sow network is presented in the paper. Pig pricing formulas and custom rates are discussed for sharing risks among the farrower, nursery and finisher members of the network. The staff paper is 34 pages plus a 26 page annotated reading list of other publications on networking and segregated early weaning.

Suggested Citation

  • Koehler, Bob & Lazarus, William F. & Buhr, Brian L., 1996. "Swine Production Networks In Minnesota: Resources For Decision Making," Staff Papers 14232, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:14232
    DOI: 10.22004/ag.econ.14232
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    Cited by:

    1. Jeffrey M. Gillespie & Joan R. Fulton, 2001. "A Markov chain analysis of the size of hog production firms in the United States," Agribusiness, John Wiley & Sons, Ltd., vol. 17(4), pages 557-570.
    2. Cozzarin, Brian P. & Westgren, Randall E., 2000. "Rent Sharing Mechanisms In Production Alliances," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(3), pages 1-14.
    3. Cozzarin, Brian P. & Barry, Peter J., 1998. "Organizational Structure In Agricultural Production Alliances," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(2), pages 1-17.
    4. William F. Lazarus & Diego E. Platas & George W. Morse & Steffanie Guess-Murphy, 2002. "Evaluating the Economic Impacts of an Evolving Swine Industry: The Importance of Regional Size and Structure," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 458-473.
    5. Welsh, Rick, 1997. "Reorganizing U.S. Agriculture: THE RISE OF INDUSTRIAL AGRICULTURE AND DIRECT MARKETING," Policy Studies Program Reports, Henry A. Wallace Institute for Alternative Agriculture, number 134115, March.

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    Keywords

    Livestock Production/Industries;

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