Transcript Comparing U.S. and Ontario Costs of Production Shakespeare Swine Seminar Shakespeare, Ontario Sept. 19, 2012 Chad Hart Associate Professor/Grain Markets Specialist [email protected] 515-294-9911 Extension and Outreach/Department of Economics.

Comparing U.S. and Ontario Costs of
Production
Shakespeare Swine Seminar
Shakespeare, Ontario
Sept. 19, 2012
Chad Hart
Associate Professor/Grain Markets Specialist
[email protected]
515-294-9911
Extension and Outreach/Department of Economics
Source: Lee Schulz, ISU Extension
Extension and Outreach/Department of Economics
Source: Lee Schulz, ISU Extension
Extension and Outreach/Department of Economics
Source: Lee Schulz, ISU Extension
Extension and Outreach/Department of Economics
Source: Douglas Richards, OMAFRA
Extension and Outreach/Department of Economics
Rough Comparison: Farrow to Wean
Farrow to Wean
Jan
Iowa
Feed
Other Variable
Fixed
Total
Ontario
Feed
Other Variable
Fixed
Total
Feb
28.91
4.69
10.29
43.89
17.68
16.12
6.40
40.20
Mar
29.74
4.10
10.37
44.21
Apr
May
Jun
($US per hog)
28.58
26.94
25.98
4.89
5.99
6.65
10.26
10.10
10.00
43.73
43.03
42.64
24.88
7.38
9.89
42.15
24.68
7.50
9.87
42.06
17.92
16.05
6.40
40.37
($Can per hog)
17.83
17.40
16.03
15.90
6.40
6.40
40.26
39.70
16.36
15.67
6.40
38.43
15.95
15.77
6.40
38.12
16.91
15.75
6.40
39.06
Jul
Sources: ISU and OMAFRA
Extension and Outreach/Department of Economics
Rough Comparison: Farrow to Finish
Farrow to Finish
Jan
Iowa
Feed
Other Variable
Fixed
Total
Ontario
Feed
Other Variable
Fixed
Total
Feb
113.78
41.48
18.74
174.00
120.10
37.88
20.85
178.83
Mar
114.22
40.94
18.82
173.98
Apr
May
Jun
Jul
($US per hog)
113.68
112.94
112.95
113.44
118.13
41.76
42.87
43.33
44.06
44.24
18.71
18.55
18.45
18.34
18.32
174.15
174.36
174.74
175.84
180.70
118.75
37.79
20.85
177.39
($Can per hog)
119.22
120.20
120.64
37.77
37.63
37.47
20.85
20.85
20.85
177.84
178.68
178.96
120.79
37.38
20.85
179.02
124.74
37.51
20.85
183.10
Sources: ISU and OMAFRA
Extension and Outreach/Department of Economics
Rough Comparison: Wean to Finish
Wean to Finish
Jan
Iowa
Feed
Other Variable
Fixed
Total
Ontario
Feed
Other Variable
Fixed
Total
Feb
84.61
37.86
8.45
130.92
100.01
19.94
13.69
133.64
Mar
84.05
37.74
8.45
130.24
Apr
May
Jun
Jul
($US per hog)
84.79
85.82
86.97
88.67
93.57
37.96
38.34
38.84
39.49
39.70
8.45
8.45
8.45
8.45
8.45
131.20
132.61
134.26
136.61
141.72
98.43
19.92
13.69
132.04
($Can per hog)
99.02
100.45
101.42
19.92
19.92
19.93
13.69
13.69
13.69
132.63
134.06
135.04
102.16
19.93
13.69
135.78
106.54
19.95
13.69
140.18
Sources: ISU and OMAFRA
Extension and Outreach/Department of Economics
Hog Crush Margin
The Crush Margin is the return after the pig, corn and soybean meal costs.
Carcass weight: 200 pounds
Pig price: 50% of 5 mth out lean hog futures
Corn: 10 bushels per pig
Soybean meal: 150 pounds per pig
Source: ISU Extension
Extension and Outreach/Department of Economics
Potential Returns to Farrow to Finish Production in Iowa,
$/Head
$70
$50
$30
Potential losses
Sept-12 through Jul-13
@ average of
$34.64/head
$10
-$10
-$30
-$50
-$70
Source: Lee Schulz, ISU Extension
Extension and Outreach/Department of Economics
Thank you for your time!
Any questions?
My web site:
http://www.econ.iastate.edu/~chart/
Iowa Farm Outlook:
http://www.econ.iastate.edu/ifo/
Ag Decision Maker:
http://www.extension.iastate.edu/agdm/
Extension and Outreach/Department of Economics