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

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.