ECONOMIC BURDEN OF SALMONELLA INFECTIONS IN THE UNITED STATES

The aim of this study is to evaluate medical expenditures and lost productivity associated with burden of Salmonella infections. We used laboratory confirmed number of Salmonella cases and corresponding multipliers to estimate the burden of illness using the method adopted by Foodborne Diseases Active Surveillance Network (FoodNet) at Centers for Disease Control and Prevention (CDC). The medical costs estimates are retrospective analysis of reimbursement records from MarketScan data. We identified patients with a diagnosis of salmonellosis using ICD-9 CM codes from the MarketScan 1993-2001 databases. Productivity loss from the nonfatal cases of Salmonella was calculated using the distributions of lost workdays and household services due to the illness. Statistical value of life approach was used to estimate the costs due to premature deaths. We also compared the costs for the gastrointestinal salmonellosis to the cost for the invasive salmonellosis. Confidence intervals around the cost estimates were calculated using a Monte Carlo simulation technique. Estimated average economic burden due to Salmonella was $210 per outpatient,$5,797 per inpatient with gastrointestinal infection, $16,441 per impatient with invasive infection and$4.63 million per premature death. Total economic buren due to Salmonella in the United States was estimated at $2.8 billion (95$1.6 to $5.3 billion) annually, which is approximately$2,472 per case of Salmonella infection. The cost estimate is largely driven by the number of premature deaths followed by average cost of hospitalization. Defining the risk factors for fatal outcomes may help target treatment and preventive strategies.Food Consumption/Nutrition/Food Safety,

REGIONAL COMPETITIVE POSITION OF PORK INDUSTRY

In the recent past U.S. pork industry experienced geographical shifts in its production and processing. Some geographical areas have competitive advantages over the areas in raising pigs. Costs of raising pigs vary by type and size of operations, and other location specific factors. We used enterprise budgeting approach to estimate the profitability of representative feeder to finishing operations in different geographical regions in U.S. We obtained data from the United States Department of Agriculture databases, costs and returns survey and various university sources. The cost differences were not due to the unit prices of inputs but were largely driven by the differences in their efficiencies. Overhead costs varies by locations and size of operation. Pork feeding operations of all sizes operate at a loss if we account for all the cash expenses and opportunity costs given the prices of all inputs and output. However, producers got positive profits over the variable costs. The Eastern Corn belt regions' pork producers reap the highest operating profit ($1,861 per 100 hogs) followed by the Western Corn Belt region and the West region ($1,661). The results of production systems analyses as outlined here suggest that smaller firms have limited ability to compete with larger firms on the basis of cost of production. The key to keeping hog business competitive is higher production efficiency. Feed, labor, and building and equipment efficiencies were potential means of cutting production costs. Smaller producers who do not attain strong efficiencies in production are at a disadvantage relative to larger producers.Livestock Production/Industries,

FACTORS AFFECTING REGIONAL SHIFTS OF U.S PORK PRODUCTION

The U.S. pork industry in the recent past has transferred into fewer, larger and specialized operations. Inputs availability, developments of transportation systems, technological changes, government regulations and the consumer preferences have been driving changes in the pork industry. Spatial inequalities affect the competitiveness of one region relative to other regions. This paper is focused on how these forces affect the regional competitiveness of the pork industry and movement towards larger, specialized and geographically concentrated operations. A mathematical programming model is used to analyze the effect of market forces on the pork industry structure. The results of this study show that although raising hogs in larger operations is less costly, small-sized operations in some regions still need to produce hogs to meet the demand for consumption and export. Environmental compliance cost is considered one of the major factors of industry relocation; the analysis showed that the effect of such costs was minimal. Feed costs and transportation costs play a greater role in location of production and processing. Pork operations tend to locate near the populous areas to meet the consumer demand and to minimize the transportation cost. Pressures from current and future environment regulations, moratoria and scarcity of agricultural land for manure management tend to keep the hog operations away from high population areas. A future scenario analysis suggested that the Western region of the U.S. would experience higher growth in pork production. The current trend of fewer and larger production units and location change in the pork industry will continue.Livestock Production/Industries,

CONSUMERS' WILLINGNESS TO PAY FOR FOOD SAFETY: A PATHOGEN SPECIFIC ANALYSIS

Estimates of the economic benefits of intervention strategies to make food safer from specific pathogens for different durations of protection are not available. We estimated consumers' willingness to pay for a hypothetical vaccine that would deliver a 1-year, 5- years, 10-years, or lifetime protection against Salmonella, E. coli, or Listeria. We used logit and Tobit models to estimate the economic benefits of food safety measures against these major foodborne pathogens. Based on FoodNet 2002 population survey data, consumers were willing to pay for protection against foodborne pathogens. They were willing to pay more for longer protection and for protection against E. coli compared to Salmonella or Listeria. However, they were less willing to pay if the protection was costly.Contingent valuation, Food Safety, Economic benefits, population survey, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

POTENTIAL OF CANOLA IN MICHIGAN

This study consists of four different aspects of canola in Michigan with special emphasis on northern Michigan. The economic feasibility of canola as an alternative cash crop, potential canola growing area, feasibility of establishing canola processing plant(s) in northern Michigan and the canola marketing situation in Michigan were appraised. Secondary data, previous research results, key informant interviews, informal visits, expert opinions and survey data were used to study these aspects of canola. Review of past agronomic research results showed that canola can successfully be grown in various part of Michigan, including northern Michigan. Break-even analysis of canola with other alternative crops like wheat, corn, oats and soybeans suggested that canola can be more profitable than these crops whereas it cannot compete with kidney beans, dry beans and potatoes. Key informant surveys revealed that out of 598,000 acres of cultivated land in Northern Michigan, approximately 10,000 acres would be shifted to growing canola immediately, under the assumption of no marketing problems. The area would be sufficient for supplying canola to run two small to medium scale processing plants at full capacity. The economic feasibility of establishing canola processing plants has been evaluated in depth. Net present value (NPV) and internal rates (IRR) of return of proposed operations are encouraging. Various possible scenarios have been analyzed and it is concluded that canola processing has potential, particularly in northern Michigan. The case studies with grain elevators showed that canola handling might be profitable and that there is good potential for canola in Michigan. The major bottleneck in this sector is the lack of processing facilities in Michigan. Farmers are presently reluctant to grow canola due to perceived difficulties in marketing. Grain elevators are not handling canola at present time because of the very small volume of production. All of the respondents believed that the development of canola processing plant(s) or a strong marketing chain is necessary to stimulate the canola sub-sector in Michigan

POTENTIAL OF CANOLA IN MICHIGAN

This study consists of four different aspects of canola in Michigan with special emphasis on northern Michigan. The economic feasibility of canola as an alternative cash crop, potential canola growing area, feasibility of establishing canola processing plant(s) in northern Michigan and the canola marketing situation in Michigan were appraised. Secondary data, previous research results, key informant interviews, informal visits, expert opinions and survey data were used to study these aspects of canola. Review of past agronomic research results showed that canola can successfully be grown in various part of Michigan, including northern Michigan. Break-even analysis of canola with other alternative crops like wheat, corn, oats and soybeans suggested that canola can be more profitable than these crops whereas it cannot compete with kidney beans, dry beans and potatoes. Key informant surveys revealed that out of 598,000 acres of cultivated land in Northern Michigan, approximately 10,000 acres would be shifted to growing canola immediately, under the assumption of no marketing problems. The area would be sufficient for supplying canola to run two small to medium scale processing plants at full capacity. The economic feasibility of establishing canola processing plants has been evaluated in depth. Net present value (NPV) and internal rates (IRR) of return of proposed operations are encouraging. Various possible scenarios have been analyzed and it is concluded that canola processing has potential, particularly in northern Michigan. The case studies with grain elevators showed that canola handling might be profitable and that there is good potential for canola in Michigan. The major bottleneck in this sector is the lack of processing facilities in Michigan. Farmers are presently reluctant to grow canola due to perceived difficulties in marketing. Grain elevators are not handling canola at present time because of the very small volume of production. All of the respondents believed that the development of canola processing plant(s) or a strong marketing chain is necessary to stimulate the canola sub-sector in Michigan.Crop Production/Industries,

EDUCATIONAL NEEDS OF MICHIGAN LIVESTOCK FARMERS

Michigan State University Extension (MSUE) established areas of expertise (AOE) teams to deliver Extension programs in Michigan more effectively. Increasing the expertise of its staff members at the county level to meet the dynamic educational needs of its clients is important consideration of MSUE. The purpose of this paper is to study the Michigan livestock farmers' educational needs. A sample of Michigan farmers was surveyed in 1996 and 1999, utilizing a standard mail survey. Responses from Michigan livestock farmers were isolated from the database for this study. The study revealed general farm magazines, agricultural newspapers, Extension publication, printed materials from commercial firms and sales persons, and family and friends were primary source of information. Electronic information media and organizational events were not popular. Livestock farmers believed that the MSUE agents had a broad perspective of the farming business and they were not willing to pay a private consultant to help manage their farm/business. Information pertaining to specific topics such as business management, farm management, economics of farm operations, environmental protection, and agricultural marketing were found as important areas of educational needs. Livestock farmers who are 35 years or older and who do not have college education should be the target of these educational programs

REGIONAL COMPETITIVE POSITION OF PORK INDUSTRY

In the recent past U.S. pork industry experienced geographical shifts in its production and processing. Some geographical areas have competitive advantages over the areas in raising pigs. Costs of raising pigs vary by type and size of operations, and other location specific factors. We used enterprise budgeting approach to estimate the profitability of representative feeder to finishing operations in different geographical regions in U.S. We obtained data from the United States Department of Agriculture databases, costs and returns survey and various university sources. The cost differences were not due to the unit prices of inputs but were largely driven by the differences in their efficiencies. Overhead costs varies by locations and size of operation. Pork feeding operations of all sizes operate at a loss if we account for all the cash expenses and opportunity costs given the prices of all inputs and output. However, producers got positive profits over the variable costs. The Eastern Corn belt regions' pork producers reap the highest operating profit ($1,861 per 100 hogs) followed by the Western Corn Belt region and the West region ($1,661). The results of production systems analyses as outlined here suggest that smaller firms have limited ability to compete with larger firms on the basis of cost of production. The key to keeping hog business competitive is higher production efficiency. Feed, labor, and building and equipment efficiencies were potential means of cutting production costs. Smaller producers who do not attain strong efficiencies in production are at a disadvantage relative to larger producers

ECONOMIC BURDEN OF SALMONELLA INFECTIONS IN THE UNITED STATES

The aim of this study is to evaluate medical expenditures and lost productivity associated with burden of Salmonella infections. We used laboratory confirmed number of Salmonella cases and corresponding multipliers to estimate the burden of illness using the method adopted by Foodborne Diseases Active Surveillance Network (FoodNet) at Centers for Disease Control and Prevention (CDC). The medical costs estimates are retrospective analysis of reimbursement records from MarketScan data. We identified patients with a diagnosis of salmonellosis using ICD-9 CM codes from the MarketScan 1993-2001 databases. Productivity loss from the nonfatal cases of Salmonella was calculated using the distributions of lost workdays and household services due to the illness. Statistical value of life approach was used to estimate the costs due to premature deaths. We also compared the costs for the gastrointestinal salmonellosis to the cost for the invasive salmonellosis. Confidence intervals around the cost estimates were calculated using a Monte Carlo simulation technique. Estimated average economic burden due to Salmonella was $210 per outpatient,$5,797 per inpatient with gastrointestinal infection, $16,441 per impatient with invasive infection and$4.63 million per premature death. Total economic buren due to Salmonella in the United States was estimated at $2.8 billion (95$1.6 to $5.3 billion) annually, which is approximately$2,472 per case of Salmonella infection. The cost estimate is largely driven by the number of premature deaths followed by average cost of hospitalization. Defining the risk factors for fatal outcomes may help target treatment and preventive strategies

FACTORS AFFECTING REGIONAL SHIFTS OF U.S PORK PRODUCTION

The U.S. pork industry in the recent past has transferred into fewer, larger and specialized operations. Inputs availability, developments of transportation systems, technological changes, government regulations and the consumer preferences have been driving changes in the pork industry. Spatial inequalities affect the competitiveness of one region relative to other regions. This paper is focused on how these forces affect the regional competitiveness of the pork industry and movement towards larger, specialized and geographically concentrated operations. A mathematical programming model is used to analyze the effect of market forces on the pork industry structure. The results of this study show that although raising hogs in larger operations is less costly, small-sized operations in some regions still need to produce hogs to meet the demand for consumption and export. Environmental compliance cost is considered one of the major factors of industry relocation; the analysis showed that the effect of such costs was minimal. Feed costs and transportation costs play a greater role in location of production and processing. Pork operations tend to locate near the populous areas to meet the consumer demand and to minimize the transportation cost. Pressures from current and future environment regulations, moratoria and scarcity of agricultural land for manure management tend to keep the hog operations away from high population areas. A future scenario analysis suggested that the Western region of the U.S. would experience higher growth in pork production. The current trend of fewer and larger production units and location change in the pork industry will continue