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Do Antibiotics Reduce Production Risk for U.S. Pork Producers?

Published online by Cambridge University Press:  28 April 2015

Xuanli Liu ,
Gay Y. Miller  and
Paul E. McNamara
Xuanli Liu
Affiliation:
Agricultural Research Station, Fort Valley State University, Fort Valley, GA
Gay Y. Miller
Affiliation:
Departments of Veterinary Pathobiology, Veterinary Clinical Medicine, and Agricultural and Consumer Economics
Paul E. McNamara
Affiliation:
Department of Agricultural and Consumer Economics, University of Illinois, Urbana–Champaign, IL
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Abstract

We combine econometric and financial analyses of the NAHMS 2000 Swine Survey data to examine whether evidence exists for reducing risk by using antibiotics for growth promotion (AGP) in the U.S. swine industry. A stochastic dominance analysis of alternative lengths of time (days) of AGP application reveals that AGP used in the range of 65–75 days is preferred by risk-averse producers. Risk is reduced and profits are increased from use of AGP. The combined impacts of increased average daily gain and decreased variability in pig live weight increase producer profits by $2.99 per pig marketed.

Keywords

antibioticsgrowth promotionpigsriskstochastic dominancevariabilityD21D61D81Q12R32
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 37 , Issue 3 , December 2005 , pp. 565 - 575
Copyright
Copyright © Southern Agricultural Economics Association 2005

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