An economic appraisal of pig improvement in Great Britain

Abstract

This thesis reports a cost-benefit appraisal of pig improvement work in Great Britain in recent years. Estimates of the genetic improvement achieved by the Meat and Livestock Commission's Pig Improvement Scheme and by certain independent breeding companies are taken and the impact of this improvement on the commercial industry as a whole is estimated and valued. This value is then compared with estimates of the scale of investment in pig improvement. The results show returns have been very high compared with costs and compare well with the high returns reported in other areas of agricultural research and development (an internal rate of return of 70% is calculated). A detailed sensitivity analysis is carried out which shows the overall results to be quite robust, although a number of areas where more accurate information would be valuable are highlighted. A number of wider issues relating to animal breeding in general are discussed. In particular the discount rate is considered in some detail and the effects on net present value of a wide range of rates (as quoted in the animal breeding literature) are demonstrated. A number of areas for possible future consideration are mentioned.