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Economic Model for Swine Production
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This work begins with the observation that§significant structural changes in livestock§production practices have occurred since the§traditional or piece-wise approach to the analysis of§livestock production was established in the 1950''s§(e.g., Heady, 1954).The purpose of this work is to§analyze the effects of two sources of these changes,§shifts in consumer''s tastes and preferences and§changes in the regulatory environment in which§production takes place, on overall swine farm§profitability. The traditional approach to livestock§production analysis regards the effects of these§changes on values generated by production components§in a piece-wise way. The integrated swine production§model, developed here, is based on a more§comprehensive or integrated approach (Zering, 2001). §The integrated model simultaneously accounts for the§effects of ration, growth and manure handling§decisions on overall farm profitability and jointly§optimizes pork and manure nutrient outputs.§Accounting for value interactions between production§components expands the farmer''s choice set of§activities for either mitigating or exploiting§nutrient related parameter changes. This is the main§benefit of the integrated model. Overall farm§profitability generated under the integrated approach§will at worst be identical to overall profitability§generated under the piece-wise approach to modeling§the nutrient related aspects of livestock production.
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