Animal production in the Flemish region and pig production in particular is intensive and causing external problems related to manure disposal. At a regional level, manure disposal can be regarded as a problem of distributing the manure from farms with a surplus to farms with a shortage or to disposal alternatives. Total disposal costs will depend on the amount of manure surplus and on the location dependent disposal cost per unit. Disposal costs are an economic incentive for structural changes and cost abatement investments at farm level which will, in turn, influence the regional disposal. In order to simulate these interactions, an integrated system of models describing the regional manure disposal coordination system is developed, composed of a farm level component, an aggregation module and a regional disposal model. The possibilities for disposal cost abatement at farm level are analysed through LP modelling of representative farms. Incentives for structural change are derived from the shadow prices of the housing and land constraints in the model. Manure separation is analysed as an example of cost abatement investments. (C) 1997 Elsevier Science Ltd.