1 Economic Analysis of Pig Space: Comparison of Production System Impacts1

This study evaluates the economic impact of changing pig space allotments in a pig production system. Increasing concerns regarding the health and well-being of meat animals raised in confinement facilities have resulted in consideration of increasing the space allotment for animals. A survey was conducted to determine pig space allotments currently in use by the industry. Pig space allocations per pig currently in use averaged 7.19 square feet for confinement facilities and 11.57 square feed for hoop systems. A simulation model was developed to use in evaluating economic impacts of increasing pig space allotments above those currently in use. Space restrictions result in two key economic impacts: 1) an under utilization of the existing confinement production asset base, and 2) a resulting impact on potential marketing practices. Three major results emerged. First, restricting pig space has significant negative financial consequences for existing commercial confinement swine production systems. Secondly, marketing weight and timing mitigation strategies can be a short-term solution when compared to restricting flows into the finishing phase of production, but are clearly inferior to th