Banning subtherapeutic antibiotics in U.S. swine production: a simulation of impacts on industry structure

Michael G. Hogberg, Kellie Raper and James F. Oehmke
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Michael G. Hogberg: AgriStrategies, Inc., 17310 Wright Street, Suite 203, Omaha, NE 68130, Postal: AgriStrategies, Inc., 17310 Wright Street, Suite 203, Omaha, NE 68130
James F. Oehmke: Department of Food, Agriculture and Resource Economics, Michigan State University, c|o 202 Agriculture Hall, East Lansing, MI 48823, Postal: Department of Food, Agriculture and Resource Economics, Michigan State University, c|o 202 Agriculture Hall, East Lansing, MI 48823

Agribusiness, 2009, vol. 25, issue 3, 314-330

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.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:25:y:2009:i:3:p:314-330

DOI: 10.1002/agr.20204

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