# The Effect of the Revision of the Carcass Trading Standard of Pigs on the Profitability and Growth Performances on Japanese Commercial Farms

## TL;DR

A 2023 revision to Japan's pig carcass trading standard increased optimal carcass weight, leading to higher profitability for most commercial pig farms.

## Contribution

The study empirically evaluates the impact of a revised carcass trading standard on profitability and growth performance in Japanese pig farming.

## Key findings

- The mean carcass weight increased from 76.1 to 77.1 kg after the CTSP revision.
- Farms increasing carcass weight by more than 2 kg saw higher profit margins over feed cost.
- Higher sales revenue per pig, not feed cost reduction, drove increased profitability.

## Abstract

This study investigated the effect of the revision of Japan's Carcass Trading Standard for Pork (CTSP) in January 2023, which increased the optimal carcass weight (CWT) range by 3 kg, on the profitability and growth productivity of commercial pig farms. We analyzed data from 116 Japanese farrow‐to‐finish farms in 2022 and 2023. The study found that the mean CWT significantly increased from 76.1 to 77.1 kg (p < 0.05), with 77% of farms increasing their CWT. Statistical analysis revealed that farms that had increased their CWT by more than 2 kg saw a significantly higher increase in margin over feed cost per market pig compared with farms that had decreased their CWT (p < 0.05). This increased profit was primarily driven by higher sales revenue per market pig owing to the increased CWT, while feed cost per pig was statistically similar across all change groups. In conclusion, the CTSP revision successfully encouraged most farms to increase CWT, providing a clear economic advantage in terms of margin over feed cost.