A simple tool that producers can download free of charge can help them find the ideal shipping weight for every batch of pigs they sell.
The only question is why people are not catching on, says Herman Simons, farm management specialist with Alberta Agriculture and Forestry’s farm information centre in Stettler.
At the Red Deer Swine Technology Workshop on Oct. 19, Simons described the hog shipping evaluator and how it works to give producers an accurate picture of the opportunities available to them given current market conditions, including prices and feed costs over a range of weight classes.
“We know we are not going to get the maximum revenue all the time. There are some pigs that are going to fall outside the optimum,” said Simons, a former hog producer and former chair of Alberta Pork.
“How much of that optimum and how much of that loss are you willing to give up within your normal operation?” he asked.
The evaluator requires farmers to fill in a few details, including the price index per 100 kg, feed conversion and feed cost. The producer then selects a weight class and the evaluator crunches the numbers from there.
Simons showed examples where producers could see $5 to $10 per pig in additional opportunities by fine-tuning their shipping weights based on current conditions, assuming they have room to hold smaller pigs back if necessary. In one of his examples, a sample farm gained $36,000 in net revenue for one year, after feed costs, by shipping at optimum weights.
While there are often other considerations at play, the evaluator will help farmers pinpoint their shipping weights to the strongest possible advantage, said Simons.
“Of course, this is all very farm specific. You have to do your own due diligence in supplying the information,” he said. “
The biggest thing in pigs is the market price and your feed costs. As those relatively change towards each other, they will have an impact on your revenue, on your effectiveness,” he said in a later interview with Prairie Hog Country.
“It does change for each farm, depending on your index for different classes. The live grid would say your optimum is right around 96 or 98 kilos. But actually, if you use the evaluator, it shows that, for some people, the optimum would be at 100 kilos,” he said.
Simons invites hog producers to download the hog evaluator spreadsheet from AAF’s web site.
To find the tool, go to www.agriculture.alberta.ca/farm-manager then select decision making tools in the top menu, select livestock from the left side and scroll down to the pig section to find the hog shipping evaluator.
Simons can also offer advice during business hours from his Stettler office. Call him toll free by dialling 310-FARM (310-3276). •
— By Brenda Kossowan
