Economics

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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): B. Wade Brorsen, Terry Lehenbauer, Dasheng Ji, and Joe Connor
Publication Date: January 1, 2002
Reference: Journal of Agriculture and Applied Economics, 34,3(December 2002):489-500
Country: USA

Summary:

The objective of this study is to develop useful economic estimates of the impact of potential restricted-use policies for antimicrobial agents used in swine production as growth promotants. By using a model similar to that used by Wohlgenant, the economic impacts of banning antimicrobials in swine production are measured by the changes in producers’ and consumers’ surplus. It was found that a ban on the use of antimicrobial agents as growth promotants for swine would be costly, totaling $242.5 million annually, with swine producers bearing $153.5 million of the cost in the short run. In the long run, the loss borne by consumers would likely be larger than the
loss borne by producers. Based on a 30-year planning horizon and a 4% discount rate, the net present value of these increased costs would be $3.2 billion.

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