Transcript Using Available Data to Select Your Boar

Changes in Management for
Pork Contracts
Tim Safranski
State Swine Breeding Specialist
(573) 884-7994
Contracting
•
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Reduce fluctuation in cash flow
Decrease risk (i.e. shared)
Share costs
Have a guaranteed market
Access to $$$
Contractor or Contractee?
To contract, or not to contract….
• Predictable cash flow
• Predictable cash flow
To Contract, or not to contract….
• Predictable cash flow
• Forces record keeping
• Predictable cash flow
• Forces record keeping
To Contract, or not to contract….
• Predictable cash flow • Predictable cash flow
• Forces record keeping • Forces record keeping
• Production plan and
• Production plan and
outside assistance
outside assistance
To Contract, or not to contract….
• Predictable cash flow
• Forces record keeping
• Production plan and
outside assistance
• Strict biosecurity
• Predictable cash flow
• Forces record keeping
• Production plan and
outside assistance
• Strict biosecurity
To Contract, or not to contract….
• Predictable cash flow
• Forces record keeping
• Production plan and
outside assistance
• Strict biosecurity
• Facilities meet
minimum standard
• Predictable cash flow
• Forces record keeping
• Production plan and
outside assistance
• Strict biosecurity
• Facilities meet
minimum standard
To Contract, or not to contract….
• Predictable cash flow
• Forces record keeping
• Production plan and
outside assistance
• Strict biosecurity
• Facilities meet
minimum standard
• Waste control is legal
• Predictable cash flow
• Forces record keeping
• Production plan and
outside assistance
Strict biosecurity
• Facilities meet
minimum standard
• Waste control is legal
To Contract, or not to contract….
• Predictable cash flow
• Forces record keeping
• Production plan and
outside assistance
• Strict biosecurity
• Facilities meet
minimum standard
• Waste control is legal
• Consistent genetic
source
• Predictable cash flow
• Forces record keeping
• Production plan and
outside assistance
• Strict biosecurity
• Facilities meet
minimum standard
• Waste control is legal
• Consistent genetic
source
Other Considerations
• Finisher
– mixed sex
– feed supplied, how to sell corn?
– incentives
• Farrow
– replacement rate/culling decisions
– breeding system (P = G + E + GxE)
– incentives
Litter Size
Weaned
18
16
18
17
14
12
10
11.5
8
10.7
9.6
6
4
2
0
Ovu.
Fert.
Birth
Alive
Wean
# of potential pigs
Other Considerations Continued
• Reliability of other party
– company
– another farmer
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Personalities
Specialization of labor
Long-term asset, short-term contract?
IPPA Swine Contract Approaches
– (section 5 in notebook)
• NPPC Guide to contracting
Thoughts for Extension
Personnel
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Who are we working for?
What is our role?
Are costs of production known?
Are goals known?
frequency
Standard Normal Distribution
-3
-2
-1
0
1
2
Standard Deviations From Mean
3