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Home / NEWS & MEDIA / Unlock New Areas Of Profitability
New technologies and products could hold the key
Rising input costs, devastating disease outbreaks, trade restrictions and costly channel customer mandates have challenged producers to work harder to remain profitable in recent years. While these dynamics continue to put economic pressure on producers, some promising new technologies and production options may offer some economic relief.
With so many new products and alternative methods available to producers, “I always encourage producers throughout the meat complex to neither openly accept nor reject a new production option without pausing and thinking through its potential economic return,” said Glynn Tonsor, PhD, associate professor, agricultural economics, Kansas State University.
Whether it’s a new piece of equipment, a new animal health product or a new technology, producers can find economic value in cost savings, revenue generation or a combination of the two. Therefore, it’s important to understand the scope of changes that a new input or alternative process can bring and to not oversimplify your assessment.
Tonsor recommends a thorough evaluation process that effectively considers short-term and long-term benefits and the overall impact of those decisions in practice. He suggests the following approach:
Recently, Tonsor as part of a multi-economists team applied this approach to the use of immunological castration (IC). Vital to their economic analysis and for the benefit of producers who are considering IC adoption, Tonsor and his colleagues note a growing base of knowledge about this alternative production option and its associated advantages. Research and on-farm trials specific to North American production systems provide insights about how IC works compared with physical castration methods. Approved in more than 60 countries, IC technology has been used around the world, including in key U.S. export markets for more than a decade. This gives producers the opportunity to learn from real-world applications and as a result, they benefit from the lessons learned from producers around the world. As use of the technology among global competitors increase, U.S. pork producers will risk losing market share by not adopting it.
“IC requires upfront discussion within the pork supply chain because of its direct impacts at multiple levels,” Tonsor said. “Having that good communication also will result in fewer surprises in the long run.”
Zoetis (zō-EH-tis) is the leading animal health company, dedicated to supporting its customers and their businesses. Building on more than 60 years of experience in animal health, Zoetis discovers, develops, manufactures and markets veterinary vaccines and medicines, complemented by diagnostic products and genetic tests and supported by a range of services. In 2013, the company generated annual revenues of $4.6 billion. With approximately 9,800 employees worldwide at the beginning of 2014, Zoetis has a local presence in approximately 70 countries, including 28 manufacturing facilities in 11 countries. Its products serve veterinarians, livestock producers and people who raise and care for farm and companion animals in 120 countries. For more information, visit www.zoetis.com.
Zoetis is the proud sponsor with the Smithsonian Institution Traveling Exhibition Service and the American Veterinary Medical Association of the mobile educational exhibit Animal Connections: Our Journey Together. Families visiting the exhibit will explore the vast bonds between people and animals and learn about the important role veterinarians play in protecting animal and human health.
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