Table 4. Optimal Incentive System Parameters and Performance Measures (λ = 0.10 and dhogd = 50)
|
÷-------------------------- |
---Investor Owned Firm ---------------------- |
---------> |
÷----------- |
------------------------Cooperative ---------------- |
----------------------> |
÷------------------------------- |
---------Chain ----------------------- |
---------------------->______ | |||||||||||||
|
Bacteriological threshold value |
3.5 |
3.0 |
2.5 |
2 |
1.5 |
1 |
0.5 |
3.5 |
3 |
2.5 |
2 |
1.5 |
1 |
0.5 |
3.5 |
_________3 |
2.5 |
2_____ |
1.5 |
1 |
0.5 |
|
______________Parameters_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ | |||||||||||||||||||||
|
αo - Producer quality premium |
0.80 |
0.80 |
1.05 |
1.30 |
1.40 |
1.40 |
3.55 |
4.10 |
4.00 |
4.10 |
4.15 |
4.15 |
3.35 |
4.05 |
[0.80-4.10] |
[0.80-4.00] |
1.90 |
1.30 |
1.50 |
1.50 |
4.00 |
|
α - Production history indicator level |
[0-24] |
[0-24] |
24 |
24 |
24 |
24 |
0 |
[0-24] |
[0-24] |
24 |
24 |
24 |
24 |
0 |
[0-24] |
[0-24] |
24 |
24 |
24 |
24 |
0 |
|
α2 - Maximum testing probability |
0.00 |
0.00 |
0.52 |
0.47 |
0.49 |
0.49 |
1.00 |
0.00 |
0.00 |
0.57 |
0.53 |
0.40 |
0.60 |
1.00 |
0.00 |
0.00 |
0.51 |
0.51 |
0.99 |
0.99 |
1.00 |
|
α3 - Testing probability reduction |
0.00 |
0.00 |
0.10 |
0.04 |
0.05 |
0.05 |
0.00 |
0.00 |
0.00 |
0.11 |
0.06 |
0.03 |
0.07 |
0.00 |
0.00 |
0.00 |
0.10 |
0.05 |
0.10 |
0.10 |
0.00 |
|
α4 - Minimum testing probability |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
1.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
1.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
1.00 |
|
α5 - Producer share of testing cost |
[0-1] |
[0-1] |
1 |
1 |
1 |
1 |
1 |
[0-1] |
[0-1] |
0 |
0 |
0 |
0 |
0 |
[0-1] |
[0-1] |
1 |
1 |
1 |
1 |
1 |
|
α6 - Producer penalty |
0.00 |
0.00 |
1.30 |
1.70 |
3.10 |
3.10 |
3.80 |
0.00 |
0.00 |
1.30 |
1.50 |
3.00 |
3.20 |
3.90 |
0.00 |
0.00 |
1.30 |
1.50 |
4.00 |
4.00 |
3. 70 |
|
α7 - Serological threshold value |
[10-40] |
[10-40] |
30 |
30 |
30 |
30 |
10 |
[10-40] |
[10-40] |
30 |
30 |
30 |
30 |
10 |
[10-40] |
[10-40] |
30 |
30 |
40 |
40 |
10 |
|
g(γ) - Plant level Salmonella control |
2 |
2 |
2 |
2 |
2 |
2 |
3 |
2 |
2 |
2 |
2 |
2 |
2 |
3 |
2 |
2 |
2 |
2 |
2 |
2 |
3 |
Performance Measures
|
Expected bacteriological prevalence |
1.46 |
1.46 |
1.07 |
0.76 |
0.64 |
0.64 |
0.13 |
1.46 |
1.46 |
1.10 |
0.83 |
0.64 |
0.64 |
0.13 |
1.46 |
1.46 |
1.08 |
0.78 |
0.64 |
0.64 |
0.13 |
|
Expected serological prevalence |
45.10 |
45.10 |
33.87 |
25.17 |
21.60 |
21.60 |
4.60 |
45.10 |
45.10 |
34.69 |
26.96 |
21.60 |
21.60 |
4.60 |
45.10 |
45.10 |
34.07 |
25.73 |
21.60 |
21.60 |
4.60 |
|
Producer gain (€/hog) - producer quality premium |
0.800 |
0.800 |
1.050 |
1.300 |
1.400 |
1.400 |
3.550 |
4.100 |
4.000 |
4.100 |
4.150 |
4.150 |
3.350 |
4.050 |
[0.800-4.100] |
[0.800-4.000] |
1.900 |
1.300 |
3.500 |
3.300 |
4.000 |
|
- expected control cost |
0.720 |
0.720 |
0.921 |
1.076 |
1.140 |
1.140 |
2.920 |
0.720 |
0.720 |
0.907 |
1.044 |
1.140 |
1.140 |
2.920 |
0.720 |
0.720 |
0.917 |
1.066 |
1.140 |
1.140 |
2.920 |
|
- expected testing cost |
0.000 |
0.000 |
0.018 |
0.034 |
0.027 |
0.027 |
0.100 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.018 |
0.036 |
0.019 |
0.019 |
0.100 |
|
- expected penalty to plant |
0.000 |
0.000 |
0.069 |
0.144 |
0.172 |
0.172 |
0.418 |
0.000 |
0.000 |
0.067 |
0.125 |
0.175 |
0.169 |
0.429 |
0.000 |
0.000 |
0.067 |
0.126 |
0.085 |
0.085 |
0.407 |
|
- expected total cost |
0.720 |
0.720 |
1.008 |
1.254 |
1.339 |
1.339 |
3.438 |
0.720 |
0.720 |
0.972 |
1.169 |
1.315 |
1.309 |
3.349 |
0.720 |
0.720 |
1.002 |
1.226 |
1.245 |
1.245 |
3.427 |
|
- expected monetary gain |
0.080 |
0.080 |
0.043 |
0.046 |
0.061 |
0.061 |
0.112 |
3.380 |
3.280 |
3.128 |
2.981 |
2.835 |
2.041 |
0.701 |
[0.080-3.380] |
[0.080-3.280] |
0.898 |
0.074 |
0.255 |
0.055 |
0.573 |
|
Farmer certainty equivalent of gain |
0.047 |
0.047 |
0.002 |
0.001 |
0.000 |
0.000 |
0.001 |
3.347 |
3.247 |
3.088 |
2.937 |
2.775 |
1.979 |
0.585 |
[0.047-3.347] |
[0.047-3.247] |
0.858 |
0.030 |
0.203 |
0.203 |
0.466 |
|
Slaughter plant gain (€/hog) - slaughter plant price premium |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
|
- slaughter plant control cost |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.400 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.400 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.400 |
|
- quality premium paid to producers |
0.800 |
0.800 |
1.050 |
1.300 |
1.400 |
1.400 |
3.550 |
4.100 |
4.000 |
4.100 |
4.150 |
4.150 |
3.350 |
4.050 |
[0.800-4.100] |
[0.800-4.000] |
1.900 |
1.300 |
1.500 |
1.500 |
4.000 |
|
- expected penalty from producers |
0.000 |
0.000 |
0.069 |
0.144 |
0.172 |
0.172 |
0.418 |
0.000 |
0.000 |
0.067 |
0.125 |
0.175 |
0.169 |
0.429 |
0.000 |
0.000 |
0.067 |
0.126 |
0.085 |
0.085 |
0.407 |
|
- expected testing cost |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.018 |
0.032 |
0.028 |
0.025 |
0.100 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
- expected slaughter penalty |
0.033 |
0.145 |
0.082 |
0.050 |
0.147 |
0.944 |
0.123 |
0.033 |
0.145 |
0.098 |
0.091 |
0.147 |
0.944 |
0.123 |
0.033 |
0.145 |
0.085 |
0.061 |
0.147 |
0.944 |
0.123 |
|
Expected monetary slaughter gain |
3.317 |
3.205 |
3.087 |
2.944 |
2.775 |
1.979 |
0.595 |
0.017 |
0.005 |
0.001 |
0.002 |
0.000 |
0.000 |
0.006 |
[3.317-0.017] |
[3.205-0.005] |
2.232 |
2.915 |
2.588 |
1.791 |
0.134 |
|
Overall chain gain (€/hog) |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
4.250 |
|
- expected farm control cost |
0.720 |
0.720 |
0.921 |
1.076 |
1.140 |
1.140 |
2.920 |
0.720 |
0.720 |
0.906 |
1.044 |
1.140 |
1.140 |
2.900 |
0.720 |
0.720 |
0.917 |
1.066 |
1.140 |
1.140 |
2.920 |
|
- slaughter plant control cost |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.400 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.400 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.100 |
0.400 |
|
- expected testing cost |
0.000 |
0.003 |
0.018 |
0.034 |
0.027 |
0.027 |
0.100 |
0.000 |
0.000 |
0.018 |
0.032 |
0.028 |
0.025 |
0.100 |
0.000 |
0.000 |
0.018 |
0.036 |
0.019 |
0.019 |
0.100 |
|
- expected slaughter penalty |
0.033 |
0.145 |
0.082 |
0.050 |
0.147 |
0.944 |
0.123 |
0.033 |
0.145 |
0.098 |
0.091 |
0.147 |
0.944 |
0.123 |
0.033 |
0.145 |
0.085 |
0.061 |
0.147 |
0.944 |
0.123 |
|
- expected monetary gain for the chain |
3.397 |
3.285 |
3.130 |
2.890 |
2.836 |
2.040 |
0.707 |
3.397 |
3.285 |
3.128 |
2.983 |
2.835 |
2.041 |
0.707 |
3.397 |
3.285 |
3.130 |
2.990 |
2.843 |
2.047 |
0.707 |
|
Expected welfare gain for the chain |
3.364 |
3.252 |
3.089 |
2.944 |
2.775 |
1.979 |
0.596 |
3.364 |
3.252 |
3.088 |
2.939 |
2.775 |
1.980 |
0.591 |
3.364 |
3.252 |
3.089 |
2.946 |
2.791 |
1.994 |
0.600 |
28