Economics

SwineCast 0311b for June 11 2008

SwineCast 0311b Show Notes:

  • Special World Pork Expo Coverage
    • News Conference from WPX with NPPC President Bryan Black and International Trade Counsel Nick Giordano featuring a trade update

SwineCast 0311a for June 11 2008

SwineCast 0311a Show Notes:

  • Special World Pork Expo Coverage
    • News Conference from WPX with NPPC President Bryan Black, CEO Niel Dierks and NPPC Farm Bill Policy Task Force Co-Chair Joy Philippi looking at Industry Economics and Farm Bill

2008 World Pork Expo: Increase profits in 2008: Stuff that is not on the typical lists.

Economist Dr. Dennis DiPietre talks about Increase profits in 2008: Stuff that is not on the typical lists.. Educational seminar sponsored by Boehringer Ingelheim, at the 2008 World Pork Expo, June 5 to 7, Des Moines, Iowa, USA.

SwineCast 0310 for June 9 2008

SwineCast 0310 Show Notes:

  • Conversing with Glenn Grimes at World Pork Expo on markets and ratios
  • Tradeshow talk about BASF's Nutridense corn system
  • Iowa State's Suzanne Millman joins us for a followup discussion about her animal welfare presentation at National Institute for Animal Agriculture

SwineCast 0309 for June 5 2008

SwineCast 0309 Show Notes:

  • Conversations from World Pork Expo 2008. Hooking up with NPPC's VP and Counsel for International Trade, Nick Giordano

SwineCast 0306 for May 28 2008

SwineCast 0306 Show Notes:

  • Recapping the farm bill outcomes for pork producers and a preview of World Pork Expo with NPPC's David Warner
  • China figures to be a bright spot in world pork import needs. Bruce Cochrane has more
  • Economist says higher gas prices could help to level the biofuels playing field. However, he's not running for office...
  • Food prices increase 40% around the world over the past year

2008 NIAA Animal Care and Well-Being: EU Consumer driven animal welfare and food safety

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2008 NIAA Animal Care and Well-Being: OIE Animal Welfare Perspective

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OIE Animal Welfare Perspective

2008 NIAA Animal Care and Well-Being: Comprehensive USDA Business Plan Review

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Opportunity Costs

Its time to revisit the notion of opportunity costs. Opportunity costs are measured by the value of the next best alternative that you rejected when you make a decision. Opportunity costs and in fact all costs predate the invention of money. Even in our religious and wisdom writings, opportunity costs abound. For instance, what was the cost to humanity of Eve eating the apple? No money exchanged hands but the cost was the loss of paradise in exchange for knowledge. What is the current (and on-going costs) of choosing your current spouse, if you have one? That usually gets the point across.

Costs arise out of scarcity. Since you cannot be married to two people at the same time unless you move to the panhandle of Texas and join a certain religion, you are a scarce resource. When you commit to one, the cost is all you left behind.

Assume you interview two managers for a key position and both have decent resumes but one is clearly more creative, careful and likely to perform above expectations.  You know that you will have to pay her 20% more than the other one or she will be bid away to another farm in a year or two.  You decide to hire the cheaper one at "industry average cost" for managers.  How long will it take for the "average performer" to kill the advantage in salary reduction you received.  On most farms of any size it can be a matter of days.  The opportunity cost of hiring the "cheaper" one is the classic mistake that "cost only" producers constantly make.  Granted it is difficult to know the outcomes in advance on hiring decisions.   

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