Impacts of Pst on Optimal Production and Marketing Decisions of a Grow-Finish Hog Farm Operation

Although somatotropins were discovered many years ago, only recent advances in recombinant DNA technology have made their commercial use economically feasible. Somatotropins are growth hormones which occur naturally in animals. Their supplemental use in livestock production have been shown to increase animal productivity. For example, bovine somatotropin (BST) has the effect of increasing milk production of dairy cows, while porcine somatotropin (PST) improves feed efficiency and carcass composition of pigs. Upon approval by the Food and Drug Administration, somatotropins will become available to dairy farmers and hog producers in the United States, necessitating both producer and industry level adjustments. The purpose of this study is to evaluate the impact of PST on the optimal production and marketing strategies of a representative midwest growfinish hog farm operation. While hog producers can increase production through use of PST without significant additional costs, they are facing the dilemma that the potential increased supply from technology adoption will likely lead to lower mar-