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Economic Impact of a Ban on the Use of Over the Counter Antibiotics in U.S. Swine Rations

Author

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  • Hayes, Dermot J.
  • Jensen, Helen H.
  • Backstrom, Lennart
  • Fabiosa, Jacinto F.

Abstract

The US pork industry routinely adds antibiotics to rations of weaned pigs both to prevent illness before symptoms emerge and to increase growth rates. The EU is in the process of restricting feed use of antibiotics, and the U.S. is currently reviewing the practice. The strategic issue facing US pork producers is whether another food safety dispute with the EU is worthwhile. This paper evaluates the economic impact of such a ban in the U.S. The analysis uses a set of technical assumptions derived from the experience of a similar ban in Sweden and finds such a ban would increase production costs per head between $5.24 and $6.05; net profit would decline $0.79 per head. On the consumer side, the effects of a ban would raise the retail price of pork by 5 cents per pound.

Suggested Citation

  • Hayes, Dermot J. & Jensen, Helen H. & Backstrom, Lennart & Fabiosa, Jacinto F., 2001. "Economic Impact of a Ban on the Use of Over the Counter Antibiotics in U.S. Swine Rations," Staff General Research Papers Archive 5139, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:5139
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    References listed on IDEAS

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    1. Brian L. Buhr & Marvin L. Hayenga, 1994. "Ex Ante Evaluation of the Economic Impacts of Growth Promotants in the U.S. Livestock and Meat Sector," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 16(2), pages 159-173.
    2. Office of Health Economics, 1969. "Antibiotics in Animal Husbandry," Series on Health 000158, Office of Health Economics.
    3. Hayenga, Marvin L. & Buhr, Brian L., 1994. "Ex Ante Evaluation of the Economic Impacts of Growth Promotants in the U.S. Livestock and Meat Sector," Staff General Research Papers Archive 11318, Iowa State University, Department of Economics.
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    Cited by:

    1. Liu, Xuanli & Miller, Gay Y. & McNamara, Paul E., 2005. "Do Antibiotics Reduce Production Risk for U.S. Pork Producers?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(3), pages 1-11, December.
    2. Mojduszka, Eliza M., 2004. "Private And Public Food Safety Control Mechanisms: Interdependence And Effectiveness," 2004 Annual meeting, August 1-4, Denver, CO 19987, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Tina L. Saitone & Richard J. Sexton, 2017. "Agri-food supply chain: evolution and performance with conflicting consumer and societal demands," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(4), pages 634-657.
    4. Schulz, Lee L. & Hadrich, Joleen C., 2014. "Feeding Practices and Input Cost Performance in U.S. Hog Operations: The Case of Split-Sex and Phase Feeding," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169983, Agricultural and Applied Economics Association.
    5. Algozin, Kenneth A. & Miller, Gay Y. & McNamara, Paul E., 2001. "An Econometric Analysis Of The Economic Contribution Of Subtherapeutic Antibiotic Use In Pork Production," 2001 Annual meeting, August 5-8, Chicago, IL 20633, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Hollis, Aidan & Ahmed, Ziana, 2014. "The path of least resistance: Paying for antibiotics in non-human uses," Health Policy, Elsevier, vol. 118(2), pages 264-270.
    7. Tina L. Saitone & Richard J. Sexton & Daniel A. Sumner, 2015. "What Happens When Food Marketers Require Restrictive Farming Practices?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(4), pages 1021-1043.
    8. William D. McBride & Nigel Key & Kenneth H. Mathews, 2008. "Subtherapeutic Antibiotics and Productivity in U.S. Hog Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 270-288.
    9. Laurian J. Unnevehr & Helen H. Jensen, 2001. "Industry Compliance Costs: What Would They Look Like in a Risk-Based Integrated Food System?," Center for Agricultural and Rural Development (CARD) Publications 01-wp278, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    10. Miller, Gay Y. & Liu, Xuanli & McNamara, Paul E. & Bush, Eric J., 2003. "Producer Incentives For Antibiotic Use In U.S. Pork Production," 2003 Annual meeting, July 27-30, Montreal, Canada 21931, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Jayson L. Lusk & F. Bailey Norwood & J. Ross Pruitt, 2006. "Consumer Demand for a Ban on Antibiotic Drug Use in Pork Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1015-1033.
    12. Dagim G. Belay & Jørgen D. Jensen, 2022. "Quantitative input restriction and farmers’ economic performance: Evidence from Denmark's yellow card initiative on antibiotics," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 155-171, February.
    13. Michael G. Hogberg & Kellie Curry Raper & James F. Oehmke, 2009. "Banning subtherapeutic antibiotics in U.S. swine production: a simulation of impacts on industry structure," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 314-330.

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