October 1, 1997

Economic aspects of reorganizing the pig-breeding sector

This paper analyzes recent proposals by the Ministry of Agriculture, Fisheries and Nature Conservation to restructure the pig producing sector.

The restructuring plan consists of a reduction of the number of pigs by 25% and the introduction of tradeable pig producing permits. The consequences of the proposals are evaluated by means of a scenario study. The scenario outcomes show, among other things, that employment in the pig chain will decrease (due to the restructuring measures) by some 13,000 labor years. It shows also that a successful restructuring of the sector is possible only if the pig processing industry succeeds in upgrading its output. As a general conclusion, the study states that the restructuring measures imply a substantial break with the past. However, in view of the environmental damages caused by the sector and the problems brought on by the outbreak of swine fever, the sector has to be restructured in any case.

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Herman Stolwijk Read more

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