The economics of hog production in Arizona

Published in 1972

Production of hogs in Arizona has increased rapidly in recent years, with much of this growth observed during a period of extremely good prices for slaughter pork. Future increases will be dependent on favorable prices and costs of production being competitive with producers in the midwest.

The principle objective of this study was to determine the costs of producing pork in Arizona, and to examine the effects on these costs of increasing the sow herd. Data were obtained in personal interviews with 33 farrow to finish hog operators. These data were analyzed to examine the general characteristics of the industry, and in determining the technical coefficients used in setting up synthetic models for. various size farrow-to-finish hog operations.

Results of the analysis indicate reductions in costs per unit of output are available to producers as the sow herd is increased to 600 sows. Beyond this point the analysis indicates that further cost reductions do not appear, and even some diseconomies may be witnessed between the 600 and 1,000 sow operations.

In general, costs of producing pork in Arizona, although somewhat higher than for most midwest producers, are competitive. But, production increases to meet projected demand will most likely occur as a result of improved marketing alternatives, rather than from lower costs of production.

AZU_TD_BOX278_E9791_1972_135.pdf (1.5 MB)

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