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Economic Impact of a Ban on the Use of Over the Counter Antibiotics in U.S. Swine Rations

  • Hayes, Dermot J.
  • Jensen, Helen H.
  • Backstrom, Lennart
  • Fabiosa, Jacinto F.

The US pork industry routinely adds antibiotics to rations of weaned pigs both to prevent illness before symptoms emerge and to increase growth rates. The EU is in the process of restricting feed use of antibiotics, and the U.S. is currently reviewing the practice. The strategic issue facing US pork producers is whether another food safety dispute with the EU is worthwhile. This paper evaluates the economic impact of such a ban in the U.S. The analysis uses a set of technical assumptions derived from the experience of a similar ban in Sweden and finds such a ban would increase production costs per head between $5.24 and $6.05; net profit would decline $0.79 per head. On the consumer side, the effects of a ban would raise the retail price of pork by 5 cents per pound.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 5139.

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Date of creation: 01 Jan 2001
Date of revision:
Publication status: Published in International Food and Agribusiness Management Review 2001, vol. 4 no. 1, pp. 81-97
Handle: RePEc:isu:genres:5139
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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  1. Hayenga, Marvin L. & Buhr, Brian L., 1994. "Ex Ante Evaluation of the Economic Impacts of Growth Promotants in the U.S. Livestock and Meat Sector," Staff General Research Papers 11318, Iowa State University, Department of Economics.
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