Operations K.

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Social, Economic, Health, and Ethical Impacts of Large-Scale Hog Confinement Operations
Andrews, D., Grudens-Schuck, N., Hall, M., Hessler, K., Holbrook, D., Nossaman,A., Reeder, K.
Student Learning Objectives
After completing this case study, students will be able to
 Recognize social, economic, health, and ethical concerns regarding large-scale hog confinement
operations.
 Analyze the reciprocal impacts of integrating large-scale hog confinements into small rural
communities.
Group Objectives
 Social group: Students should both identify and analyze social concerns imbedded in the case study:
quality of life, the aging population, community involvement, etc. Students should consider both the
immediate and future concerns of integrating large-scale hog confinements into small rural
communities. In order to address “community concerns,” students will need to identify the various
social groups within a community.

Economic group: Students should account for a wide range of economic impacts that result from
their analysis of the study. There are immediate and obvious impacts related to the income generated
and goods purchased by the two businesses, but they should also recognize and account for indirect
costs and benefits – for example, the benefits that a community that offers a higher overall quality of
life can expect over a community that does not offer these less tangible benefits.

Health group: Students should identify and analyze the health concerns surrounding large scale hog
confinements. These concerns should include both the immediate and the long term health risks
surrounding large scale hog confinements. Students should also look at the health issues
surrounding the aging population.

Ethical group: There are several varieties and instances of ethical values, some of which are
competing with one another suggested by the study. Students should recognize these, classify them
according to being private or public goods, and ideally be able to order these values as to which are
most significant, weighty, and/or overriding.
Activity
Divide students into four groups. Provide each group with a copy of the case study. Each group will identify
different kinds of issues raised by the case. Group one will identify social issues, group two will identify
economic issues, and group three will identify health issues, and group four will identify ethical issues.
Step 1
Each group will answer the following questions:
1. Who are the stakeholders?
2. What is at stake?
3. What are the claims made by each group of stakeholders?
4. What values might motivate these claims?
5. What evidence supports these claims?
6. Which side in the debate has the strongest claims in the domain that you are investigating (social,
economic, health, or ethical)?
Step 2:
Each group will present their findings in a 20-minute presentation, followed by a 15 minute question and
answer period. (See Part Four of the Penguin Handbook: Designing and Presenting.)
Step 3:
Each person will then write a report paper synthesizing the four domains (social, economic, health, and
ethical). Each group’s research will be made available to the other groups.
Case Study
Ten local small to mid-sized producers, who are struggling to survive and retain ownership of their family
farms, have pooled their finances, expertise, and labor in order to compete and survive in a changing farm
environment. They have recently purchased eighty acres of prime farm ground near Cornucopia, Iowa, a
town of ninety-five hundred people. These investors plan to build a large hog confinement, Corporate
Swine, which will finish 80,000 hogs per year. In order to gain community support, Corporate Swine has
agreed to employ fifteen locals at $13 per hour and 40 hours per week, provide health insurance, and give
each employee two hogs per year. Additionally, Corporate Swine has agreed to buy all the feed from the
local co-op for the first five years even though Corporate Swine could save 10 percent of feed costs by
buying directly from the feed company. In keeping with responsible management, Corporate Swine has
secured currently required permits, has followed current state and local regulations regarding hog
confinements, and has willingly planted a tree barrier to help prevent odors even though the barrier is not
currently mandated. Moreover, Corporate Swine has contracted with area farmers to spread manure on 6,400
neighboring acres.
The first summer of operation, odors from Corporate Swine began to pollute the air around Majestic Manner,
a local assisted living facility that has serviced the local community for 15 years. Although Majestic Manner
is located 1.5 miles from Corporate Swine, the hog odor is so offensive that residents of Majestic Manner are
unable to go outside and enjoy the beautiful courtyard gardens. In fact, seven of the Majestic Manner
residents were admitted to the hospital with respiratory ailments, and their families blame the hog facility for
the respiratory problems. Additionally, the staff of Majestic Manner claims that the residents have been
lethargic, depressed, and irritable as a result of being housebound. Residents have rallied together and said
they will all move home to live with their families if the odor persists. The Majestic Manner staff believes
the residents have the right to enjoy the garden. In fact, the medical staff at Majestic Manner believes that
getting outside is vital to the mental and physical health of the residents.
As a result of the hog odor, Majestic Manner is facing a forced closure, the community is facing losing their
only assisted living facility, and families are facing the problems of caring for elderly parents who need daily
assistance with medications, hygiene, cooking, and laundry. Moreover, four of the forty clients at Majestic
Manner are in the first stages of Alzheimer’s and require additional care.
The fifteen staff members of Majestic Manner have worked hard to develop a loving, supportive community
at Majestic Manner, and they are completely devastated by the prospect of losing their jobs, but more
importantly, by the prospect of losing the relationship they have developed with the residents.
Economic Information
 For every 2,000 pigs, Corporate Swine needs 160 acres on which to spread manure.
 It takes 3.5 lbs. of feed x 240 lbs. of gain per pig.
 Thirteen Majestic Manner employees earn $12.50 per hour.
 Majestic Manner has two rotating nurses on twenty-four hour call. Each nurse makes $40.00 per
hour and puts in 25 hours per week.
 Majestic Manner has a local physician who comes one day per week to check on the residents. The
physician makes $600.00 each time he visits.

Each resident pays $27,000 to live at Majestic Manner. This fixed cost includes housekeeping, food,
and laundry services. Patients who need additional care are charged accordingly.
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