Contract quality promotes antimicrobial use reduction among pig farmers in China

Antimicrobial resistance (AMR) is a growing global threat, with the overuse of antibiotics in livestock being one of the main causes. Farmers may sometimes overuse veterinary antibiotics with the aim of preventing epidemics. While existing literature has meticulously examined the ramifications of contract farming on the transmission and control of animal diseases, our research conducts the first quantitative analysis that elucidates how contract quality (transcending mere participation) drives antimicrobial use reduction. We used questionnaire data from Chinese pig farmers and a Tobit model to examine the impact of contract quality on antimicrobial use reduction among rural pig farmers in Shandong Province, China. The results indicated that contract quality had a significant positive effect on antimicrobial use reduction among pig farmers, a finding that remained robust after addressing endogeneity and conducting various robustness checks. Mechanism analysis revealed that the primary channels through which contract quality promoted antimicrobial use reduction were stringent delivery requirements, in-depth information sharing, and explicit premium incentives. Heterogeneity analysis showed that the impact of contract quality on antimicrobial use reduction varied across different groups. Our study enhances the understanding of the relationship between contract quality and antimicrobial use reduction among pig farmers, providing evidence for contract management and livestock production safety.