Economic Consequences of Banning the Use of Antibiotics at Subtherapeutic Levels in Livestock Production

Henry Gilliam, J. Rod Martin, William G. Bursch and Richard B. Smith

No 329853, Miscellaneous Publications from United States Department of Agriculture, Economic Research Service

Abstract: Excerpts from the report: A ban on the use of antibiotic feed additives (antibiotics administered routinely at subtherapeutic levels) in livestock production would: (1) increase ae length of feeding period needed to achieve a specified increment of weight gain (or reduce the weight gain during a specified feeding period), because average daily gains are normally lower in the absence of antibiotic feed additives; (2) increase the quantity of feed required to produce a given increment of weight gain, because more feed is usually required per pound of gain when no antibiotic feed additives are used; and (3) perhaps affect the mortality rate among animals on feed. The economic results of a ban, aside from the effects it would have on the net revenues of manufacturers and distributors of antibiotics, would depend largely on the reactions of livestock producers to such a ban. This study analyzes the potential economic effects of three possible livestock producer reactions, or adjustment patterns, as follows: Situation A--producers feed the same numbers of animals as were fed before the ban for longer feeding periods to maintain output at pre-ban levels; Situation B--producers feed greater numbers of animals than were fed before the ban for the same (pre-ban) feeding periods to maintain output at pre-ban levels; and Situation C--producers feed the same numbers of animals as were fed before the ban for the same (pre-ban) feeding periods, resulting in a reduction in livestock output. This study considers some of the economic effects that a ban on antibiotic feed additives might have on livestock producers and consumers. It is intended as a benchmark analysis which may serve as a basis for more comprehensive research of this complex problem.

Keywords: Agricultural and Food Policy; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries; Production Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 128
Date: 1972-11
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersmp:329853

DOI: 10.22004/ag.econ.329853

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