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Technological change and vertical integration in the swine industry have resulted in fewer farms producing record amounts of pork. The number of operators involved in swine production in Pennsylvania fell from 20,000 at the beginning of 1981 to 3,456 in 1997. Pennsylvania remains an important swine producer with market value of sales ranking it 12th in the country. Approximately 70 percent of Pennsylvania swine operations produce less than 100 head per year, and only 2.8 percent produce more than 1,000 head per year. While the trend in the swine industry continues towards larger farms, opportunities remain to make money by raising hogs in a part-time enterprise.
Three Enterprises and Characteristics
Three types of swine production enterprises are farrow-tofinish, farrow-to-feeder, and feeder-to-finish. No blueprint exists for these systems. The important thing is to design a production system that will complement your resources and lifestyle. To determine which enterprise will work best in your situation, you must first consider: s The amount of capital, labor, and land available. s The level of management and marketing skills needed. s The social and environmental implications associated with manure management. This publication was developed by the Small and Part-time Farming Project at Penn State with support from the U.S. Department of Agriculture-Extension Service.
A farrow-to-finish enterprise involves breeding and farrowing sows, and feeding the offspring until they reach a market weight of about 240 pounds. The entire production period takes 10 to 11 months, with four months for breeding and gestation, plus six or seven months to raise the litter to market weight. Of the three systems, farrow-to-finish has the greatest long-run market potential and flexibility. A small number of sows can fit into a crop operation nicely when farrowings are scheduled to avoid peak harvest times. Farrow-to-finish operations demand the most capital and labor, and require a long-term commitment to the swine business.
College of Agricultural Sciences Agricultural Research and Cooperative Extension
The alternatives for marketing feeder pigs and slaughter hogs from small-scale or part-time farms in Pennsylvania include: • Finishing pig producers • Livestock auctions • Graded feeder pig sales • Buying stations • Direct sales to order buyers (on-farm market sales) • Small packers/processors • Specialty sales direct to consumers Feeding Feed is the major expense of any swine production system. The feeder-to-finish operation offers an opportunity for a grain farmer to use homegrown feeds to fatten pigs without having to manage breeding stock. the direct-sale option reduces animal stress and disease risk. or a buying station are other common options. They often pay a good price. However. First. The disadvantage of marketing through an auction barn is that producers are at the mercy of the hog supply available and the demand for hogs on the local market that day. especially those with small herds. Feeder-to-Finish Most feeder-to-finish enterprises buy feeder pigs weighing 30 to 60 pounds and feed them to market weight. a farrow-to-finish operation will spend 75 percent of total expenses on feed. Producers often use this market because of its location and convenience. You must know your alternatives and stay current with price changes. adequate storage for large quantities of feed ingredients is necessary. making bulk purchases of additional ingredients. Specialty markets represent another alternative for slaughter hog producers. the producers should know the desirable weights and lot sizes that maximize prices received. In summary. transportation expenses. and no long-term commitment. One major consideration in planning a swine enterprise is how to get feed to the pigs. In general. In comparing market alternatives. Marketing feeder pigs through a livestock auction. It decreases the need for facilities. This may require farrowing sows in groups to increase the number of pigs available during periods of high demand. the buyer and seller know the price and delivery conditions in advance. An auction barn is a less commonly used option for selling slaughter hogs. and the amount of feed and manure handled. and using your own grinder and mixer (or hiring the work done in some situations) are effective ways to lower feed costs. Also. Feeder Pig Marketing All of the previously listed options are available to feeder pig producers. low labor requirements. animals in farrowing. gestation. and nursery units should be hand-fed and those in the growing-finishing units could get their feed from automatic augers. operating capital. Important points of concern are the source. A summary of the production inputs is listed in Table 1. the direct-to-finisher transaction voids commissions associated with a livestock auction. selling costs. A market 50 miles farther from the farm that is offering a higher price may produce less net revenue than selling to a local market at a lower price when all marketing costs are included. . Growing your own grain. it provides a good foundation for increasing the number of sows or expanding into a farrowto-finish operation. The consumer then contracts with a small packer for customized meat cutting and packaging. you must account for differences in price received. This system allows for minimum overhead. Third. compared to 50 percent for farrow-to-feeder operations. Slaughter Hog Marketing Buying stations and sales direct to a major packer are popular options for marketing slaughter hogs. The biggest drawback of this system is that producers. and 65 percent for feederto-finish operations. health. and convenience. Reducing the number of farms from which pigs are purchased will help reduce herd health problems. This option has advantages for both parties. Marketing A marketing strategy should be developed before beginning a swine production enterprise. In most cases existing facilities are adequate for this system. Both options allow producers to have a quoted price before selling their animals. shrink losses. but their plant capacity and number of customers restrict the number of hogs they buy. a graded sale. and quality when buying feeder pigs. A popular form of direct sale enables the consumer to buy directly from a producer.Farrow-to-Feeder A farrow-to-feeder enterprise involves breeding and farrowing sows and selling the piglets when they weigh 30 to 60 pounds to finishing operations. Second. The operation also may capitalize on the fertilizer value of the manure. One of the most popular options is marketing directly to producers who finish pigs. Ideally. choosing a market involves a little homework. are at the mercy of a volatile feeder pig market. Small packers and processors are an additional market available to slaughter hog producers. Before using these markets.
but they are difficult to keep clean and they often lead to water wastage. City or well water is preferred. If these simple guidelines are followed. Jayson K. (3) treating or avoiding parasites. Manure Handling Waste management often requires more labor than most part-time producers anticipate. Costs and returns are often difficult to estimate in budget preparation because they are numerous and variable.000 1. Pond water should be avoided. out of the buildings. state. Included in this publication are three sample budgets that summarize the costs and returns of farrow-to-finish. Remember that all the water put into the building must be hauled out. Prepared by Kenneth B. Automatic nipple waterers are best when set at proper flow rates. and onto the fields must be thoroughly planned before bringing any number of pigs onto your property. associate professor of agricultural economics. The elements of a herd health plan usually include provisions for: (1) reducing the risk of new disease introduced by herd additions or visitors. (2) keeping the facilities clean and maintaining adequate ventilation.400 160 1. only a small investment in time and money need be made in a health program. SIZE OF ANIMAL 12-30 ITEM LB 30-75 LB 75-100 LB 100-240 LB SOW & BOAR LACTATING SOW Intake (quarts/ day/head) 1 2 5 6 8 10 Watering Water source is a very important health consideration in swine production. Water requirements for swine. be considerate of your neighbors and be sure your practices are within the legal limits of the local. Sawdust should be avoided because of the potential for transmission of swine tuberculosis. and diarrheal diseases. A summary of water requirements for different size animals is listed in Table 2. (4) preventing and controlling respiratory. Sample Budgeting The sample budgets included in this publication summarize costs and returns for swine. Caution must be used when using spring water due to surface contaminants that can lead to health problems. and feeder-to-finish enterprises.Table 1. and federal governments. Shavings may be used but can be quite costly. These budgets should help ensure that you include all costs and receipts in your calculations. Greaser.800 385 16 2. senior research associate in agricultural economics. reproductive. Water lines running into the barn should be buried or properly insulated to prevent winter freezing. Harper. professor of dairy and animal science. Some important aspects of maintaining herd health include: (1) purchasing breeding stock or feeder pigs from a clean source. (3) establishing a health maintenance program (through an extension agent or veterinarian). The use of straw in a cold. Health Most part-time swine producers have minimal problems with herd health. but will require more labor. When handling manure. farrow-to-feeder. Summary of production resources. Getting water to the pigs is generally simple. . (2) maintaining sanitation. Louis Moore. The expected quantities of manure from each of the three production systems are listed in Table 1. George L. Kephart. and H.100 370 2. Think of these budgets as an approximation and make appropriate adjustments using the “your estimate” column to reflect your specific production conditions. Table 2. ITEM FARROW-FINISH (20 SOWS) FARROW-FEEDER (20 SOWS) FEEDER-FINISH (100 HOGS) Bedding 4.500 265 5 1. Bowl-type waterers are acceptable. professor of agricultural economics.200 Feed (lb/week) Feed ($/week) Labor (hour/week) Water (gal/week) Manure output (cu ft/week) Manure output (gal/week) 5. How you get the manure out of the pens.200 120 11 700 100 725 The need for bedding will depend on the facility. More information on using livestock budgets can be found in Agricultural Alternatives: Enterprise Budget Analysis. drafty barn will minimize the need for an elaborate ventilation system.
369. and boars Corn 34.168.75 $0.072.00 $900.75 $2.Sample Farrow-to-Finish Swine Budget Twenty sows and marketing fifteen pigs per sow per year.3 SBM and supplement5 480 Total feed costs Other variable costs Vet.93 $2.00 2% 2% 2% 9% 7% 17% 10% 7% 4% 60% 2% 1% 2% 1% 2% 1% 3% 12% 1% 4% 89% 1% 1% 1% 1% 2% 5% 0.640.00 $180.61 $27.00 $55.00 $536.25 SBM and supplement5 825 Finisher pigs (125 lb and up) Corn 85.00 $10.68 $1.00 $1.11 $2.25 $450. and medicine Boar purchase Electricity Supplies Heating Marketing Truck and tractor Labor Misc.389. and repairs Interest on sows7 Farrowing building8 $250 Gestation building9 $150 Nursery building10 $50 Finisher building11 $75 Real estate12 $350 Total fixed costs Total costs crate sow pig hog .00 $26.886.75 300 SBM and supplement5 Grower pigs (45–125 lb) Corn 44.433.00 $32.69 $90.338.32 $379.00 $2.00 $20.415.00 $32.00 Fixed costs Insurance.0 1.77 $13. gilts.973.00 $200.36 $1.54 $132.5 1.00 $29.79 $68.96 $474.75 $0.39 $1.2 0.00 $1. Market weight 34.200 Sows.00 $640.03 $23.00 $45.75 $0.81 $33.11 $2.65 SBM and supplement5 1.00 $32.93 $19.00 Percent of total expenses Your estimate _________ _________ _________ _________ _________ Item Receipts Market hogs1 Sows 2 Non-breeders3 Boars4 Total receipts Unit cwt cwt cwt cwt Price $40.47 $38.95 $1.00 $4.00 $300.360.00 $40.1 Per sow $1.25 $660.00 $15.75 $0.95 $148.40 $2.00 $1.365. taxes.30 $14.00 $121.40 $47.80 $816.39 $266.00 $16.60 Total for entire herd $27.453.60 $2.50 $9. Interest on operating costs6 Total variable costs lb bu lb bu lb bu lb bu lb $0.00 $15.30 $7.00 $300.50 $1.11 $30.75 $1.00 $286.00 $640.14 $24.00 $952.220.75 $235.00 $158.1% 11% 100% _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ 21 hr $8.00 $38.710.11 $2.00 $168.00 $912.00 Variable costs Amount Feed costs Pigs to 45 lb Pre-starter 75 Corn 9.815.056.33 $52.91 $22.45 $600.00 $3.107.60 $45.358.00 $94.
61 $8. 4 Based on selling .000 . 6 Equals .95 ($1.75 spaces/sow) 12 Overhead cost on real estate equal to amount required to repay amount shown in price column in 20 years @ 10% interest/sow inventory.00 $40. 5 SBM and supplement costs are equal to the price of SBM and $60 for supplement.83 $402.00 $45.00 $35.0 spaces/sow) 11 Overhead cost on facilities equal to amount required to repay amount shown in price column in 10 years @ 10% interest/sow inventory.5 x variable cost x 12%.8 spaces/sow) 10 Overhead cost on facilities equal to amount required to repay amount shown in price column in 10 years @ 10% interest/sow inventory.00 $45.61 $4.03 $232.00) $1. 7 Interest on the sows is equal to the sows’ value ($150+salvage value/2) x . Based on culling 35% of sow herd per year @ 425 lbs.00 Number of 240-lb pigs raised per sow per year minus .260.00 $5.85 gilts saved for breeding.61 ($85.683. 3 Based on selling .656.Price Returns above variable costs Low hog prices Moderate hog prices High hog prices Returns above total cost Low hog prices Moderate hog prices High hog prices $35.02 500-lb boars per sow.00 $40.63 $1. (5. (3. (. 2 1 requirements itial resource In 500 hour s Land: 10 acre hours X 20 sows = er sow per year): 25 s Labor (p s Capital ) Livestock (per head = $7.85 gilts/sow saved for breeding.15 $253.079.2 crates/sow) 9 Overhead cost on facilities equal to amount required to repay amount shown in price column in 10 years @ 10% interest/sow inventory. (.00 Price per pig Totals $63.1 8 Overhead cost on facilities equal to amount required to repay amount shown in price column in 10 years @ 10% interest/sow inventory.5 non-cycling 240-lb gilts from the .713.052.000 X 20 bred gilts $350 00 $400 X 2 boars = $8 g: $15. equipment.65) $84. fencin Existing buildings s s .
00 $40.81 $33.40 $2.37 5% 5% 6% 18% 10% 44% 3% 2% 2% 1% 3% 3% 4% 20% 2% 4% 88% 1% 2% 1% 3% 4% 0. and repairs Interest on sows7 Farrowing building8 Gestation building9 Nursery building10 Real estate11 Total fixed costs Total costs Unit cwt cwt cwt cwt Price $80.40 $300.86 $427.25 $660. gilts.00 $38.279.63 547.204.93 $19.60 $2. fe Existing build .20 $14. taxes.75 $0. equipment.50 $5.23 $60.00 $180.00 $12.00 $525.65 $1.00 $536.00 $5.33 $45.00 $360.188.124.00 $2.725.23 $256.25 $7.00 $225. and boars Corn SBM and supplement5 Total feed costs Other variable costs Vet.Sample Farrow-to-Feeder Swine Budget Twenty sows and fifteen market pigs per sow per year.30 $7.00 $952.00 $11.00 $106.00 $150.00 $26.0 $1. Interest on operating costs6 Total variable costs Fixed costs Insurance.49 1.92 $104.092.03 $23.4% 12% 100% _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ 15 hr $8.125.00 $11.48 $514.00 $20.5 lb bu lb bu lb $0.400.00 $250 $150 $50 $350 unit unit pig ts e requiremen Initial resourc s Land: 5 acre 20 sows = 360 hour r year): 18 hours X Labor (per sow pe s s Capital s s ) Livestock (per head ed gilts = $7.00 $300.000 ing.40 $47.00 $32.75 300 38.00 $15.00 $2.00 $26.11 $2.52 $10.75 $0. Market weight 6.27 $586.00 $142.44 $341.00 $225.00 $286.45 $11.37 1.27 $15.445.11 $30.20 0.00 Percent of total expenses Your estimate _________ _________ _________ _________ _________ Item Receipts Feeder pigs1 Sows2 Non-breeders3 Boars4 Total receipts Variable costs Feed costs Pigs to 45 lb Pre-starter Corn SBM and supplement5 Sows.10 Per sow $509.00 $604.03 $72.00 $912.27 $600.00 $9.25 $24.00 Amount 75 9. and medicine Boar purchase Electricity Supplies Heating Marketing Truck and tractor Labor Misc.60 $45.000 $350 X 20 br 00 $400 X 2 boars = $8 ncing: $7.25 $120.79 $2.60 Total for entire herd $10.00 $489.50 $18.
color.O.12) $366. PA 19105 Lancaster Farming P. For information telephone (814) 865-6713. performance. It is the policy of the University to maintain an academic and work environment free of discrimination.S.O.Price Returns above variable costs Low pig prices Moderate pig prices High pig prices Returns above total costs Low pig prices Moderate pig prices High pig prices $55. PA 16802-2801.85 gilts/sow saved for breeding. T. facilities. Box 16351 St.86) $18. 2 1 For More Information Farm Journal (Hogs Today) 230 West Washington Square Philadelphia. and the U. (. The Pennsylvania State University. Director of Cooperative Extension. Box 366 Lititz.52 Totals ($1.33 $177.edu Penn State College of Agricultural Sciences research. extension.00 $80.00 $105. This publication is available in alternative media on request.371. in cooperation with the U. Tel 814-865-4700/V.58) $90. R.08 $4.0 spaces/sow) 11 Overhead cost on real estate equal to amount required to repay amount shown in price column in 20 years @ 10% interest/sow inventory. This publication is available from the Publications Distribution Center.00 $105.00 $80. University Park. 5 SBM and supplement costs are equal to the price of SBM and $60 for supplement. staff.83 ($2. The Pennsylvania State University. sex. KS 66201 Pork Industry Handbook Publications and Distribution Center Printing and Publications Building Iowa State University Ames. Department of Agriculture and the Pennsylvania Legislature.817. Paul.8 spaces/sow) 10 Overhead cost on facilities equal to amount required to repay amount shown in price column in 10 years @ 10% interest/sow inventory. religious creed. (3. 112 Agricultural Administration Building.995.03 500-lb boars per sow. 814-8631150/TTY. or veteran status. The Pennsylvania State University is committed to the policy that all persons shall have equal access to programs.38 Number of 45-lb pigs raised per sow per year minus . 201 Willard Building.O. or students will not be tolerated at The Pennsylvania State University.cas. and resident education programs are funded in part by Pennsylvania counties.5 x variable cost x 12% 7 Interest on the sows is equal to the sows’ value ($150+salvage value/2) x . (. University Park. Alter. Box 2984 Shawnee Mission.S. Department of Agriculture.79 ($140. Based on culling 35% of sow herd per year @ 425 lbs. The Pennsylvania State University prohibits discrimination and harassment against any person because of age. 1914.67) $1. MN 55116 Pennsylvania Farmer 704 Lisburn Road Camp Hill. Iowa 50011 Visit Penn State’s College of Agricultural Sciences on the Web: http:// www. or qualifications as determined by University policy or by state or federal authorities. Direct all inquiries regarding the nondiscrimination policy to the Affirmative Action Director. Issued in furtherance of Cooperative Extension Work. PA 17543 National Hog Farmer P. The Pennsylvania State University. disability or handicap. admission.63 $3. race. the Commonwealth of Pennsylvania. sexual orientation.85 gilts saved for breeding. ancestry.5 non-cycling 240-lb gilts from the .812. and employment without regard to personal characteristics not related to ability. Discrimination or harassment against faculty. no discrimination is intended. PA 16802. Acts of Congress May 8 and June 30.00 Price per pig ($68.550.1 8 Overhead cost on facilities equal to amount required to repay amount shown in price column in 10 years @ 10% interest/sow inventory. including harassment. PA 17011 Pork P.2 crates/sow) 9 Overhead cost on facilities equal to amount required to repay amount shown in price column in 10 years @ 10% interest/sow inventory. © The Pennsylvania State University 2001 Rev5M3/01ps43857 .psu. 4 Based on selling .60 $249. national origin. 6 Equals . and no endorsement by Penn State Cooperative Extension is implied. 3 Based on selling .00 $55. Where trade names appear.
20 $0.Sample Feeder-to-Finish Swine Budget One hundred feeder pigs purchased and ninety-five market hogs sold.00 $45.00 $40.00 $0.317.00 $114.69 $574.00 $33.60 $0.34) $9.00 Price per pig $92.963.71 80 0.740.673.00 $447.00 $95.00 $1.75 $0.11 $2.11 $6.96 $0.75 $1.45 $15.00 $182.55 $71.25 $376.00 Percent of total expenses lbs bu lb bu lb $80.84 $3.50 43% 9% 7% 18% 10% 44% 2% 1% <1% 1% 1% 1% <1% 2% 95% ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________ Your estimate ________ Variable costs Feed costs Feeder pigs Grower pigs (45–125 lbs) Corn SBM and supplement2 Finisher pigs (125 lbs and up) Corn SBM and supplement2 Total feed costs Other variable costs Vet. with a 3% death loss.80 $38. Pigs are sold at 230 lbs.00 ts e requiremen Initial resourc s Land: 10 acre pigs = 200 hours ad): 2 hours X 100 s Labor (per he s Capital 100 pigs = $3.92 $82.00 $770. and repairs Building and equipment4 Real estate Total fixed costs Total costs Amount 45 2.88) $422. SBM and supplement costs are equal to the price of SBM and $60. and medicine Electricity Heating Marketing Truck and tractor Labor Misc.58 $7.50 $0.50 $57.35 $1.12 $35.25 $95. divided by three groups a year.00 Total receipts $8.00 $75.95 55 5.70 $8.600.88 $8.00 $2. taxes. Item Receipts Finish pigs1 Market weight 230 Unit lbs Price per unit $40.00 for supplement.15 hr $8.11 $36. fencin Existing building. 3 Equals 10% X (120 days/365 days) X (cost of feeder pig + 1/2 X all variable costs).05) $4.67 $1. Interest on operating costs3 Total variable costs Fixed costs Insurance.75 $0.00 ($669.66 ($7.50 $1.60 $1.95 Totals ($222.515.05 $15.00 $3.00 $1.63 $0.16 $20.869.600 s : $36 X Livestock (per pig) g: $5.00 $8.75 $3. .00) $870.74 $836.18 $142.38 1% 5% 0% 5% 100% ________ ________ ________ ________ ________ Price Returns above variable costs Low hog prices Moderate hog prices High hog prices Returns above total costs Low hog prices Moderate hog prices High hog prices 1 2 Price per pig ($2.00 $57.000 equipment.00 $40. 4 Overhead costs on facilities equal to annual payment required to repay amount in price column in 10 years at 10% interest.00 $4.71 $87.00 $35.00 $0.62 $1.491.00 $45.
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