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Banning subtherapeutic antibiotics in U.S. swine production: a simulation of impacts on industry structure
Author(s) -
Hogberg Michael G.,
Raper Kellie Curry,
Oehmke James F.
Publication year - 2009
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.20204
Subject(s) - production (economics) , speculation , economies of scale , livestock , scale (ratio) , business , antibiotics , pharmaceutical industry , industrial organization , economics , natural resource economics , microbiology and biotechnology , marketing , microeconomics , biology , geography , finance , ecology , cartography
Abstract Recent discussions of a subtherapeutic antibiotic ban in U.S. livestock gives rise to much speculation regarding industry impacts. Swine producers are heterogeneous; thus, a ban on subtherapeutic antibiotics could affect producers of different sizes, cost structures, different production systems and management styles differently. The authors combine average cost data with physical production data to simulate the impact of a subtherapeutic antibiotics ban on high, middle, and low‐cost producers in different types of swine production operations. Their results suggest that although economies of scale would still be important, the ban would potentially limit or reduce economies of scale in the swine industry. [JEL Codes: L11, Q12, Q13]. © 2009 Wiley Periodicals, Inc.