Environment

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Prairie Swine Centre is an affiliate of the University of Saskatchewan


Prairie Swine Centre is grateful for the assistance of the George Morris Centre in developing the economics portion of Pork Insight.

Financial support for the Enterprise Model Project and Pork Insight has been provided by:



Author(s): E. Salvano, D. Flaten, C. Grant, and G. Johnson
Publication Date: January 1, 2006
Country: Canada

Summary:

New phosphorus regulations for pig producers in Manitoba have been proposed. To comply with the proposed regulations, producers will be required to make changes in their managing of pig manure. These changes will come at some cost. Part 1 of this study (Salvano et al 2006) has outlined the proposed phosphorus regulations, namely the maximums of two-times the removal rate of phosphorus and one-times the removal rate of phosphorus. It also has outlined the framework for analysis of related changed manure management costs and has assigned unit costs to each of the alternative activities involved. Part 2 (this part) applies the framework to the Manitoba pig industry to determine an estimated additional annual cost to the industry for compliance to the proposed phosphorus regulations. The additional costs to individual operations have been estimated. These estimates have been aggregated to determine estimated added Provincial costs. The estimated added annual cost to the Manitoba pig industry under a maximum threshold regulation of 2xPhosphorus removal rate is 17.88 million dollars and the estimated added annual cost to the industry under a maximum threshold regulation of 1xPhosphorus removal rate regulation is 27.86 million dollars. The added annual costs are not distributed evenly across the Province. Under the 1xPhosphorus removal threshold regulation, the R.M. of Hanover faces the greatest added annual cost of 6.68 million dollars. La Broquerie, De Salaberry, Morris, and Ste. Anne follow, with additional annual cost estimates of 2.92, 1.87, 1.61 and 1.21 million dollars respectively. The added annual costs are also not distributed evenly across all operations. Operations with enough land face less added costs than those that require trucking or treatment. Under the 1xPhosphorus removal threshold and estimate of 56.87 percent of operations have enough land available, while 9.75 percent of operations will truck up to 20 km, 4.58 percent will truck up to 40 km and 28.79 percent will treat manure. The estimated added annual cost to the Manitoba pig industry under a maximum threshold regulation of 2xPhosphorus removal of 17.88 million dollars represents about 18% of the estimated annual 2005 net income accruing to pig producers in the Province. The estimated added annual cost under a maximum threshold regulation of 1xPhosphorus removal of 27.86 million dollars represents about 28% of the estimated annual 2005 net income accruing to pig producers in the province.

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