Ratchet effect in veterinary antibiotic use by contract farmers from the perspective of production risk: Implications for public health

Abstract

The current indiscriminate use of antibiotics for veterinary is irresponsible and misguided; it causes antibiotic resistance and adversely affects public health. The terms “habit” and “path dependence” are often used to explain the “excessive” use of agrochemicals. Yet, no research explored where the habit comes from and how it changes. This study investigates how veterinary antibiotic use changed with the production risk based on the multi-period production data set of 1,526 broiler contract farmers. The results show that the production risk has a ratchet effect on farmers' antibiotic use, leading to path dependence of farmers. Specifically, it showed a farmers' habit of steadily increasing antibiotic use and confirmed that the historical broilers' peak mortality was a key determinant to the continuation of this habit. It implies that higher the historical peak mortality, higher the current antibiotic use by farmers. Likewise, the impact of historical peak mortality on antibiotic use gradually increased with the farming experience. The increased historical peak mortality increased farmers' antibiotic use every time. Furthermore, large-scale farmers were more sensitive to historical peak mortality and therefore they increased antibiotic use excessively. The study suggests that improving farmers' production risk management capabilities, especially large-scale farmers, might help prevent extreme events. Moreover, this work contributes to the theoretical and empirical evidence on the ratchet effect, habit formation and farmers' antibiotic use and offers coherent insights for stakeholders to limit antibiotic use.