Antibiotic Restrictions to Impact Livestock Productivity

Measures to eliminate the use of medically important antibiotics for livestock production purposes are being promoted via a new Food and Drug Administration (FDA) initiative and are expected to result in lower overall livestock productivity, according to the Economic Research Service (ERS).

Productivity increases from the use of antibiotics in livestock production are typically 1% to 3% for hogs and broilers. The elimination of antibiotic use is projected to have a modest effect on productivity and, in turn, production.

Wholesale prices and net production quantities for chicken and pork are expected to increase by 1% and decline by less than 0.5%, respectively, after antibiotic use is curtailed. The increase in prices by a greater amount than the decrease in production quantities suggests that gross revenues will increase slightly.