economics

What are feed alternatives for producers? Corn is very expensive so alternatives are starting to include wheat middlings and dried distiller's grain. It is important to understand the impacts of using alternative feeds and put in place planning, including transportation costs and nutritional analysis.

Dr. Joel DeRouchey, K-State Professor/Extension Specialist, provides in depth information to consider and possible directions to take when looking at the feed alternatives. Dr. Joel DeRouchey is an Environmental Management and Livestock Nutrition Specialist with a 40% Extension, 40% Research, and 20% Teaching appointment at K-State.

Dr. Steve Meyer, Paragon Economics, provides an in-depth pork industry economic update, from the Swine Forecast 2011 webinar, December 1, 2010.

Key factors for 2011: Ethanol and biofuels policy; Grains and costs of production; Policy decisions; Macro-economic situation – esp. $US; Last month’s elections

Dr. Thomas E. Elam, President, FarmEcon LLC, recently published an economic study for the National Chicken Council stating that the USDA Grain Inspection, Packers and Stockyards Administration (GIPSA) ruling would certainly impact poultry producers and ultimately consumers would pay for the increased costs.

The proposed rule changes are likely to slow the pace of innovation, increase the costs of raising live chickens, and result in costly litigation. Identifiable cost increases for lost performance, increased bird mortality, and feed assays total an estimated $337 million in the 5th year of Proposed Rules enforcement. Total identifiable cost increases over the first 5 years of enforcement total almost $1.03 billion. Higher costs would put upward pressures on chicken prices, and economic theory strongly suggests that consumers would ultimately bear most of those costs.

PDF copy of Proposed GIPSA Rules Relating to the Chicken Industry: Economic Impact