ECONOMICS OF SOME SWINE PRODUCTION SYSTEMS WITH REFERENCE TO ANIMAL WELFARE

Livestock Production/Industries,

SWINE PRODUCTION NETWORKS IN MINNESOTA: RESOURCES FOR DECISION MAKING

Swine production networks are becoming a significant part of the Minnesota swine industry, with at least 30 production networks in operation as of late 1995. There are probably at least 450 producers involved, representing at least nine percent of the state s sow inventory. Not counted in these numbers are a few other networks involved only in data-sharing or marketing as well as a large number of farmer-to-farmer custom/contract arrangements. We interviewed 20 producers involved in networks. None of the networks we surveyed had been in operation very long, with most in business no more than a year or two. It is too early to predict what their long-term success will be. Most of the respondents seemed pleased with the arrangements so far. An example financial analysis of a 1,400 sow network is presented in the paper. Pig pricing formulas and custom rates are discussed for sharing risks among the farrower, nursery and finisher members of the network. The staff paper is 34 pages plus a 26 page annotated reading list of other publications on networking and segregated early weaning.Livestock Production/Industries,

ECONOMIC AND STRUCTURAL RELATIONSHIPS IN U.S. HOG PRODUCTION

Rapid change in the size and ownership structure of U.S. hog production has created new and varied challenges for the industry. This report describes an industry becoming increasingly concentrated among fewer and larger farms, and becoming more economically efficient. These changes have not come without problems. The increasing market control and power concentrated among packers and large hog operations, and the manure management problem posed by an increasing concentration of hog manure on fewer operations, are paramount concerns. Addressing these concerns through regulations would likely impose economic costs that could be passed on to consumers. In addition, the relative mobility of the hog industry means that regulations could result in significant changes in the location of hog production facilities, with ripple effects in local economies. Balancing environmental and economic interests will challenge policymakers dealing with the implications of structural change in U.S. hog production.Hog production, industry structure, structural change, production costs, contract production, manure management, Livestock Production/Industries,

WHAT ROLE DOES SPECIALIZATION PLAY IN FARM SIZE IN THE U.S. HOG INDUSTRY?

Replaced with revised version of paper 02/09/04.Farm Management,

Characteristics and Production Costs of U.S. Hog Farms, 2004

Hog production in 2004 was characterized by wide variation in the types, sizes, and economic performance of operations. Operations specializing in a single production phase generated more than three times the product value, on average, of those using the traditional farrow-to-finish approach. Low-cost operations tended to be larger, located in the Heartland, and operated by farmers whose primary occupation was farming. Small and medium operations far outnumbered large and very large operations, but large and very large operations accounted for most of the production. Average production costs declined as the size of the hog operation increased, a result of reduced capital costs and more efficient input use. Hog production was highly concentrated in the Heartland, but the largest operations were specialized hog finishing units in the Southern Seaboard.Agriculture, swine, hogs, hog production, hog operations, Agricultural Resource Management Survey, production costs, economies of size, Industrial Organization, Livestock Production/Industries, Production Economics, Productivity Analysis,

MANURE HANDLING COSTS AND THE COMPETITIVENESS OF PORK PRODUCTION

Simulations of possible regulation-related manure handling costs are compared to base scenario costs for the three main regions and phases of modern hog production over widely varying scale levels. The base scenario confirms previous research suggesting that in Iowa net benefits occur at small scale levels from injecting slurry stored in an outside earthern basin for corn production using a phosphorus standard. Increased transportation costs result in Iowa costs surpassing costs in Utah at higher scale levels, while costs in North Carolina are highest at all scale levels. Requiring systems to be lined and covered in Iowa and North Carolina results in proportionately greater increased costs per head in North Carolina. Adding the requirement that manure be applied according to a phosphorus standard increases costs proportionately more in Iowa at larger scale levels, but not at all at the smallest scale, and costs in Iowa surpass those in North Carolina at the largest scale. The results of all scenarios underscore the advantages enjoyed by Utah in manure handling because scales of operation there are among the largest.Livestock Production/Industries,