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

Dermot Hayes, Helen Jensen and Jacinto F. Fabiosa

Staff General Research Papers Archive from Iowa State University, Department of Economics

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.

Date: 2002-03-01
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Published in Journal of Food Control, March 2002, vol. 13 no. 2, pp. 97-101

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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:5177

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