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

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.

Demand Side Change, Rurality, and Gender in the United States Veterinarian Market, 1990–2010

“…For example, the view that improvements in animal health technologies such as antibiotics have contributed to scale economies is widespread (Finlay, ). Conversely, Hogberg, Raper, & Oehmke () argue that a ban on use of subtherapeutic antibiotics would reduce scale economies in swine production. In turn, scaling up production for whatever reason can allow for further scale economies in input procurement while lower output prices arising from scale economies in a competitive market can reduce derived demand for sector inputs.…”

The path of least resistance: Paying for antibiotics in non-human uses

“…The Swedish and Danish AGP bans resulted in increased mortality rates, decreased feed efficiency, increased weaning periods, and decline in piglets per sow [34]. A ban would require increased investment in infection control, hygiene management practices and veterinary aid to treat sick animals that would have remained healthy under subtherapeutic antibiotics.…”