Pig-bitin' mad

Posted in: Economics by admin on January 1, 2009 | No Comments

Effects of Environmental Regulation on Economic Activity and Pollution in Commercial Agriculture

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Because new technologies have enabled livestock production’s increasing mobility, the industry is now able to locate in regions not traditionally conducive to production, creating the opportunity to study legislative effects on location. This paper considers a specific set of state policies to examine the effects of environmental regulations in the agricultural sector. Because new technologies have enabled livestock production’s increasing mobility, the industry is now able to locate in regions not traditionally conducive to production, creating the opportunity to study legislative effects on location. This paper considers a specific set of state policies to examine the effects of environmental regulations in the agricultural sector.

What swine flu really teaches the world

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Consumption patterns in the market of pork and pork products

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The objectives of the survey set by the participating organisations were to collect information about the consumers’ opinion on various meat products, with special regard to pork, and to define consumer segments in bigger Hungarian towns. On the basis of the results obtained it can be stated clearly that the previous leading meat
types are still the most preferred and most frequently bought products (poultry, pork, beef). At
the same time, though, an obvious shift in consumption can be seen towards white meats, primarily
poultry. It is a general opinion that red meats (especially pork) do not belong to the modern diet, primarily
due to their high cholesterol and fat content. It seems that poultry gradually gains ground in
meat consumption, which basically cannot be compensated by the pig sector. All this has happened despite the poultry sector globally suffering from avian influenza, but this could not undermine the
increasing trust of the Hungarian consumers.During past years, poultry sector has carried out a very effi cient collective marketing activity. The message of the communication focused on the safety (traceability) and excellent quality of Hungarian poultry, as well as on the slogan ‘Hungarian poultry, Hungarian jobs’. Besides this,
the devotees of healthy nutrition started an attack against red meats saying they have to be left out of our diet.
The consumers’ view and image of pork are worse than those of poultry in almost all aspects. Therefore, future marketing research needs to reveal the factors that result in such an unfavourable image of pork that cannot have an impact on the consumption of pork and on the preferences of the consumers. A substantive re-positioning of pork products may not be necessary or only slightly, but rather a psychological re-positioning of the pork products becomes due.

Tracking the Outbreak that Shook the World

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Unilateral vs. Bilateral Incentives: Evidence from the U.S. Pork Industry

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This paper employs incentive theory and the concept of price discovery costs to offer a theoretical model and empirical evidence on the differential incentive effects of the two alternate organizational forms on the intertemporal quality of hogs in the production-processing stage of the pork value chain. The analytical results reveal that the net value of long-term contracts compared to spot markets increases when pork packers face difficulties related to the discovery and timely dissemination of optimal incentive prices for procuring certain quality attributes of hogs. Taking advantage of bundling a series of transactions and initiating lock-in relationship, the hog buyers find a way to economize on the costs of information incurred otherwise. It sheds light on how costly it is to discover an optimal price when the price should be determined beyond market demand and supply quantity dimensions, and thus informs the evolution of modes and design in organizing a particular transaction, which are distinguished from transaction cost considerations which emphasize safeguards against hold-up or misrepresentation incentives based on asset specificity or measurement imperfections. Second our theoretical and empirical exercise offers a novel method to measure the differential incentive effects of long-term procurement contracts versus spot transactions, which are rarely found in the existing literature. Based on behavioral models that capture key characteristics of distinct incentive structures across spot markets and two types of contracts, our analytical results account for why different organizational forms result in different economic outcomes, not merely describing them. However, the aggregate nature of the data precludes us from systematically controlling any noise factors from measuring the incentive effects, which may reduce the robustness of our empirical results.

Fluctuation and Cycle of Pork Price in China

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This study used a Census x12 Seasonal Adjustment Method and Hodrick-Prescott Filter Method as well as Frequency (band-pass) Filter Method. It was found that the fluctuation of pork price in China displays obvious and regular seasonal feature. Monthly price in May-June annually is the lowest point of the year, but in January- February and October- December price keeps at a high level. Secondly, unexpected event or contingency shocks make dramatic change in pork price and then damage consumer’s welfare and producer’s income in China. The occurrence and the spread of animal epidemic disease, which can cause large reduction in quantity of sows and the piglets, may be the main reason of price shake in later period. Thirdly, over the long term, pork price in China appears a rising trend reflect the increasing hog production cast due to high price of feed, labor and energy, which also fits with the growth and improvement of socio-economic development level and people’s living standards. Finally, pork price in China approximately experienced three complete cycles from 1996.1 to 2009.5. The cyclical length lies in 37-49 months; the average length is about 42.33 months. The fluctuation scope is similar between the first and third cycle, while the second cycle is relatively smooth and the fourth one is fair turbulent. It is in the falling trend now and may experienced long time in low price. But for most farmers, the hog price is almost break even point, if hog and pock price continuously declines, hog farmers will get loss again. It is urgent to make polices to protest hog farmers’ income.

Cash Flow Hedges Have Accounting Implications

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Hedging and key risk management principles have become mainstream financial tools for many pork producers as they look to manage the risks associated with buying grain and selling hogs. Hedging is an investment to reduce the risk of adverse price movements in an asset. Derivative contracts, such as futures, forwards, puts and calls are now a part of everyday operations as lenders encourage producers to implement risk management strategies. From a financial reporting perspective, these cash flow hedges are accounted for as purchase commitments, derivative contracts not electing hedge accounting and derivative contracts electing hedge accounting. Each of which are summarized in the article. However, make sure you discuss your strategy with your broker, accountant and those who utilize your financial statements to ensure you have considered all issues that may arise from the selection of these methods.

Assessing Consumer Preferences and Attitudes toward Imported Pork in Urban China

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The objective of this study is to assess and measure consumers’ preferences and attitudes
towards U.S. pork. It was found that age had a negative effect on willingness to pay (WTP) for U.S. pork, relative to domestic or Chinese pork. It is plausible that older Chinese citizens are more reluctant to purchase foreign produced
goods because they are either less understanding of imported food products or due to nationalistic and patriotic reasons. The aggregate model also indicated that individuals that shop at international supermarkets have a higher willingness-to-pay for U.S. pork. The food safety variable is insignificant in the WTP model, indicating that consumers
have not established a clear link between U.S. pork and food safety issues.

Decision Making By Consensus

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The substantial swings in feedgrain prices in 2008, along with prospects of only modest profits in 2009, have pork producers asking their trusted advisors a lot of serious questions about positioning their operations for better times. With the potentially conflicting opinions, it is easy for producers to become confused as they attempt to make sound business decisions. To prosper in these periods of rapid price gyrations, the successful producer is wise to rely on consensus from his advisory team. Notice that I stressed “team.” In my experience, there is much to be gained in strategic planning by producers of all sizes and types of agricultural enterprises when all of the individuals providing information and advice are involved in the discussion and decision making process. Who you select for your advisory team depends largely on the skills and talents that are missing in your daily decision-making process. Most often, this team will include: a lender who understands the financial consequences of your decisions; a nutritionist who understands your biggest cash expense – feed; a veterinarian who specializes in hogs and understands the health
implications of any change in production technology; and someone who understands your biggest fixed expense – facilities. In addition, you quite possibly will need input from your tax advisor if you are considering major investments or decisions that could have tax consequences. Together, this team can help you formulate a plan that should keep you successful in the business of pork production for many years to come.