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Document Type

Thesis - University Access Only

Award Date

1999

Degree Name

Master of Science (MS)

Department

Economics

First Advisor

Nicole Klein

Abstract

A survey was mailed to 1380 former swine producers in South Dakota by the South Dakota Agricultural Statistics Service. An ordered-probit model was used to determine the characteristics of swine producers who have left for different reasons. Four major reasons for exiting business were 1) low hog prices, 2) loss of marketing outlet, 3) mega-producer creating unfair marketing condition, and 4) increased environmental regulations. Conjoint analysis was used to identify which marketing factors would have the most impact on a producer's decision to come back to the business. The top three factors were 1) price, 2) regulations, and 3) financing. For the ordered-probit model, empirical findings indicated that each operator characteristic had different impacts on the reasons for leaving the swine industry differently. For example, the proportion of gross farm sales was significant in explaining loss of marketing outlet, but it was not significant for other reasons. In conjoint analysis, price was the most important factor for the respondents' decisions to re-enter the swine industry. It was found that no matter what the marketing conditions were, the producers who were oldest, least educated, small producers would not re-enter the industry. Producers with more education had more disagreement that low hog prices and mega-producers creating unfair marketing condition were the reasons for them to leave the industry. Producers with high gross farm sales strongly agreed that mega-producer creating unfair marketing condition impacted their decision, but not low hog prices and loss of marketing outlet. The specialized producers were concerned more with mega-producer creating unfair marketing conditions and loss of marketing outlet, but not with low hog prices.

Library of Congress Subject Headings

Swine -- South Dakota -- Marketing
Pork industry and trade -- South Dakota

Format

application/pdf

Publisher

South Dakota State University

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