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Technology Choice and the Economic Effects of a Ban on the Use of Antimicrobial Feed Additives in Swine Rations

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

Abstract

The use of antimicrobial feed additives (AFAs) in animal rations has come under review recently in Europe and the U.S. A recent evaluation of the economic impact of a ban on AFAs on the U.S. pork industry suggests that on average changes in productivity and fixed costs would result in increased costs and prices as producers adjust to the new regulation. These effects will vary among producers. Producers with high quality management and modern buildings would experience smaller costs from a ban. Also, new marketing technologies that support traceback of product to producers and additional compensation for pork produced without AFAs allow producers to capture price premiums to compensate for higher costs resulting from reduced use of AFAs.

Suggested Citation

  • Hayes, Dermot J. & Jensen, Helen H. & Fabiosa, Jacinto F., 2002. "Technology Choice and the Economic Effects of a Ban on the Use of Antimicrobial Feed Additives in Swine Rations," Staff General Research Papers Archive 5177, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:5177
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    Cited by:

    1. Miller, Gay Y. & Liu, Xuanli & McNamara, Paul E. & Bush, Eric J., 2003. "Producer Incentives For Antibiotic Use In U.S. Pork Production," 2003 Annual meeting, July 27-30, Montreal, Canada 21931, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Jayson L. Lusk & F. Bailey Norwood & J. Ross Pruitt, 2006. "Consumer Demand for a Ban on Antibiotic Drug Use in Pork Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1015-1033.

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