Swine Production Benchmarks

Dr Mike BrummBrumm Swine Consultancy, Inc

North Mankato, MN

Tip of the Day

Dead pig removal

Dead Game SlideCabelas

What about energy bills?

What is Normal? 2004-2007 vs 2008 www.finbin.umn.edu

2004-7 2008• Wean-Finish – per pig

– Fuel & oil $1.43 $1.50– Utilities $1.04 $0.46

• Finishing – per pig– Fuel & oil $0.71 $1.18– Utilities $0.62 $0.52

• Wean-Finish - $/cwt gain– LP - $0.50 ~$1.25/pig– Fuel & Oil - $0.18 ~$0.45/pig– Utilities - $0.38 ~$0.95/pig

• www.finbin.umn.edu– Fuel & oil $1.43– Utilities $1.04

What is Normal - 2007?Latta, Harris, Hanon & Penningroth LLP

$1.70

Iowa rule of thumb – 2 gal LP/pig space/yr wean-finish

What is Normal?

2004-7 2008• Farrow-Wean – per pig weaned

www.finbin.umn.edu

– Fuel & oil $0.49 $0.95– Utilities $1.03 $0.57

• Breed-Wean – per pig produced 2007 Latta, Harris, Hanon & Penningroth LLP

– LP - $0.57– Fuel/oil - $0.22– Utilities - $0.90

– 18 sites - 3850 sows/site

$1.69

$1.52

What about energy bills this winter?Northern Iowa – Southern Minnesota

• What’s Normal– Nursery

• 1-1.2 Kwh/space/month• 2.2 gal propane/space/yr

– Wean-Finish• <2.5 gal propane/space/yr

– Grow-Finish• <0.5 gal propane/space/yr

Common Causes ofHigh Energy Costs

• Controller Settings– Variable Speed Fans

• Bandwidth• % Minimum speed

– Furnace OFF setting– Expert Series II seasonal programs

• Equipment Sizing– Fans– Furnaces

• Winterization• Emergency Thermostats• Preheat Hallways

Minimum Speed Setting

• 50% is a funny number in most controllers• Need to know what motor curve is chosen

– Phason– Thevco– Varifan

• Wrong motor curves are a common cause of high fuel bills!

Airstream TC5 Controllers

Furnace Sizing Rules

• A furnace is big enough if it shuts off on the coldest day of the year!

• The longer the furnace runs per burn cycle, the more uniform the heat distribution with the air space!

• If more than 1 furnace, should you unplug one furnace so remaining furnaces run longer?

Preventing Overshoot

• Daily high temperatures should never be at or above temperature at which variable speed fans increase speed when operating in furnace mode.

• Use controller to log hi/low temps

VariableOutput Furnaces

LB White GuardianPSI

New HiredHand

What Was versus What Is

• Closeouts tell us what the last group did– Statistical Process Control Charting– Long term management decisions

• Monitoring the current growth process– Water

• Daily total – looks at health challenge• Daily patterns – looks at thermal neutral zone

– Feed deliveries vs expected deliveries by day on feed• Monitors feed intake (disappearance)

– Load Cells on Bins• Inventory management• Limit out-of-feed events

www.lattaharis.com

www.metafarms.com

Finbin.umn.edu

“information solutions” for the swine industry © 2007, all rights reserved 20

SMS Benchmarking Trend Charts for 2005 to 2012 (8 years)

1-7-2013

Ron Ketchem

“information solutions” for the swine industry © 2007, all rights reserved

SMS, LLC Web Site: www.swinems.com

“information solutions” for the swine industry © 2007, all rights reserved 22

Ave. / Pig Ave / sow Low / pig High / pig

Pig Sales $ 36.08 919.31 31.25 39.44

BH Cull Sales $ 3.69 93.95 0.32 5.61

Expenses $

BH Feed cost 14.67 362.24 12.71 16.14

Animal Health 1.34 34.14 0.50 2.05

Breeding 2.01 51.20 1.64 3.05

Custom Hire 1.19 30.26 0.32 1.95

Insurance 0.39 9.99 0.09 0.64

Labor 5.61 142.88 4.55 6.89

Miscellaneous 0.69 17.48 0.00 2.32

Professional 1.03 26.16 0.47 2.16

Repairs 0.74 18.90 0.28 1.88

Supplies 0.42 10.78 0.16 0.64

Taxes 0.25 6.39 0.00 0.68

Utilities 1.59 40.50 1.25 2.06

Total Cost $ 33.75 859.92 30.89 35.99Financials from SMS data based on 8 farms with 1250 to 2700 sows. 7-31-12

Latta, Harris, Hanon & PenningrothBreed-Wean – 50th (90th)%tile estimates

2010 2011

Labor/pig $4.88 ($4.65) $5.91($5.40)

Facilities/pig $5.61 ($4.35) $6.38 ($5.20)

Other $2.97 ($2.43) $1.76 ($1.00)

Costs normally born by contractor $13.45 (11.43) $14.04 ($11.60)

Genetics $3.36 ($2.12) $3.00 ($0.65)

Vet/Med $3.65 ($3.11) $3.77 ($2.70)

General and Administrative $1.48 ($1.16) $1.38 ($0.70)

Feed $11.15 ($10.07) $17.38 ($14.89)

Non-facility interest $0.44 ($0.27) $0.21 ($0.00)

Total $33.53 ($28.16) $39.78 ($33.00)

Corn $4.12 $6.70SBM $299 $319

Latta, Harris, Hanon & PenningrothBreed-Wean

• Genetic costs– Includes semen, breeding supplies, royalties, sow

depreciation, (gain)loss on sale or death. Breeding stock development costs are capitalized.

– What impacts genetic costs?• Disease (closed herd due to PRRS)• Cull sow value• Turning the herd

Latta, Harris, Hanon & PenningrothBreed-Wean 18 owned + 1 contracted (3000 sow avg inventory 2011)

2010 2011

<2000 >2000 <2000 >2000

Labor/pig $5.61 $5.23 $6.08 $5.21

Facilities/pig $4.71 $5.67 $4.76 $5.97

Other $1.88 $1.25 $1.94 $1.49

Costs normally born by contractor $12.21 $12.14 $12.78 $12.68

Genetics $3.33 $2.59 $2.67 $2.55

Vet/Med $3.28 $2.46 $3.57 $2.56

General and Administrative $1.59 $0.90 $1.32 $0.94

Feed $11.45 $11.43 $14.51 $14.64

Non-facility interest $0.25 $0.43 $0.24 $0.27

Total $32.08 $29.53 $35.06 $33.71

Latta, Harris, Hanon & PenningrothBreed-Wean

• 2011– Of the 10 herds with costs below the group

average, 5 were <2000 and 5 were >2000.

– On average size matters, but individually size isn’t an issue.

Latta, Harris, Hanon & PenningrothWean-Finish Cost of Gain, $/cwt

2010 2011

Farms 9 12

Average cost of gain $38.43 $46.31

Range $35.85-$44.54 $40.08-49.72

Labor/Facilities/Other range $6.12-9.52 $6.13-10.14

Feed range $24.88-32.31 $29.33-38.76

Veterinary range(where do vaccines happen)

$0.17-3.57 $0.40-3.30

Corn $4.12 $6.70SBM $299 $319

“information solutions” for the swine industry ©

2007, all rights reserved

28

SMS Performance data 52 weeks average- 2012 summary

Top 10 %

Top 25%

All Farms

Bottom 25%

Number of farms 78 196 788 197

Mated females 112,993 340,343 1,367,173 336,447

Pigs weaned / mf / yr 29.57 28.16 24.78 21.16

Litters / mated female / year 2.50 2.47 2.37 2.23

Wean to 1st service interval 5.52 5.85 6.73 7.60

Percent served by day 7 91.3% 91.0% 88.6% 85.9%

Percent repeat services 3.9% 5.0% 7.9% 11.0%

Farrowing rate 91.1% 88.8% 85.0% 79.8%

Female Death loss 5.4% 6.3% 7.5% 8.3%

Replacement Rate 52.1% 51.7% 54.5% 63.7%

SMS Data Set-52 weeks 2012

“information solutions” for the swine industry © 2007, all rights reserved 29

Trends in the SMS Data Set

2005 2006 2007 2008 2009 2010 2011 2012 Diff

10% 24.72 25.67 26.92 26.77 27.33 27.80 28.60 29.29 +4.57

All 21.28 21.92 22.52 22.94 23.33 23.84 24.31 24.75 +3.47

20

21

22

23

24

25

26

27

28

29

30

Pigs Weaned / Mated Female / Year

Top 10% Top 25% Top 50% ALL

“information solutions” for the swine industry ©

2007, all rights reserved

30

SMS Performance data 52 weeks average- 2012 summary

Top 10%

Top 25%

All Farms

Bottom 25%

Total pigs born / female farrowed 14.46 14.26 13.42 12.66

Pigs born live / female farrowed 13.24 12.98 12.13 11.28

Pigs weaned / female farrowed 11.77 11.38 10.55 9.67

Piglet survival 82.5% 81.4% 79.8% 77.6%

Stillborn 6.3% 6.5% 7.0% 7.8%

Pre-weaning Mortality 11.2% 12.1% 13.8% 14.5%

Average gestation length 115.7 115.8 115.8 115.7

Average age at weaning 19.14 19.24 20.12 20.48

Average parity 2.61 2.70 2.67 2.60

Average parity of culled females 4.37 4.33 4.22 3.75

SMS Data Set-52 weeks 2012

“information solutions” for the swine industry © 2007, all rights reserved 31

Trends in the SMS Data Set

2005 2006 2007 2008 2009 2010 2011 2012 Diff

10% 11.37

11.64 12.00 12.12 12.37 12.53 12.93 13.23 +1.86

All 10.54

10.81 11.04 11.26 11.45 11.65 11.92 12.10 +1.56

Jan-05

Apr-05

Jul-05

Oct

-05

Jan-06

Apr-06

Jul-06

Oct

-06

Jan-07

Apr-07

Jul-07

Oct

-07

Jan-08

Apr-08

Jul-08

Oct

-08

Jan-09

Apr-09

Jul-09

Oct

-09

Jan-10

Apr-10

Jul-10

Oct

-10

Jan-11

Apr-11

Jul-11

Oct

-11

Jan-12

Apr-12

Jul-12

Oct

-12

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

Live Born / Female Farrowed

Top 10% Top 25% Top 50% ALL

Dec, 0

1

Apr, 02

Aug, 02

Dec, 0

2

Apr, 03

Aug, 03

Dec, 0

3

Apr, 04

Aug, 04

Dec, 0

4

Apr, 05

Aug, 05

Dec, 0

5

Apr, 06

Aug, 06

Dec, 0

6

Apr, 07

Aug, 07

Dec, 0

7

Apr, 08

Aug, 08

Dec, 0

8

Apr, 09

Aug, 09

Dec, 0

9

Apr, 10

Aug, 10

Dec, 1

0

Apr, 11

Aug, 11

Dec, 1

1

Apr, 12

Aug, 12

Dec, 1

2

Jun, 1

3

Oct, 1

38.00

8.25

8.50

8.75

9.00

9.25

9.50

9.75

10.00

10.25

10.50

10.75

11.00

f(x) = 0.0112051989794055 x + 8.60121790423317R² = 0.945183013528759

Pig per litterUSDA Hogs and Pigs Report

Month

Pig

s/li

tte

r

10.16

“information solutions” for the swine industry © 2007, all rights reserved 33

Trends in the SMS Data Set

2005 2006 2007 2008 2009 2010 2011 2012 Diff

10% 9.99 10.30 10.76 10.80 11.08 11.20 11.44 11.80 +1.81

All 9.17 9.40 9.60 9.89 10.03 10.16 10.34 10.52 +1.35

Jan-05

Apr-05

Jul-05

Oct

-05

Jan-06

Apr-06

Jul-06

Oct

-06

Jan-07

Apr-07

Jul-07

Oct

-07

Jan-08

Apr-08

Jul-08

Oct

-08

Jan-09

Apr-09

Jul-09

Oct

-09

Jan-10

Apr-10

Jul-10

Oct

-10

Jan-11

Apr-11

Jul-11

Oct

-11

Jan-12

Apr-12

Jul-12

Oct

-12

9.0

9.5

10.0

10.5

11.0

11.5

12.0

Pigs Weaned / Female Weaned

Top 10% Top 25% Top 50% ALL

“information solutions” for the swine industry © 2007, all rights reserved 34

Trends in the SMS Data Set

2005 2006 2007 2008 2009 2010 2011 2012 Diff

10% 85.9% 86.9% 88.0% 87.9% 88.4% 88.5% 90.2% 90.4% +4.50

All 79.7% 81.1% 82.5% 82.5% 83.0% 84.0% 84.9% 85.1% +5.40

78%

80%

82%

84%

86%

88%

90%

92%

Farrowing Rate

Top 10% Top 25% Top 50% ALL

“information solutions” for the swine industry © 2007, all rights reserved 35

Trends in the SMS Data Set

2005 2006 2007 2008 2009 2010 2011 2012 Diff

10% 18.30 18.92 19.14 19.31 19.76 18.77 19.52 19.17 +0.87

All 18.16 18.50 18.79 19.20 19.72 19.73 19.93 20.12 +1.96

Jan-05

Apr-05

Jul-05

Oct

-05

Jan-06

Apr-06

Jul-06

Oct

-06

Jan-07

Apr-07

Jul-07

Oct

-07

Jan-08

Apr-08

Jul-08

Oct

-08

Jan-09

Apr-09

Jul-09

Oct

-09

Jan-10

Apr-10

Jul-10

Oct

-10

Jan-11

Apr-11

Jul-11

Oct

-11

Jan-12

Apr-12

Jul-12

Oct

-12

17.0

17.5

18.0

18.5

19.0

19.5

20.0

20.5

21.0

Weaning Age

Top 10% Top 25% Top 50% ALL

How We Have Improved

SGraphics1987

PigCHAMP1995

PigCHAMP1999

PigCHAMP2000

MetaFarms2008-2011

In wt 50 56.7 56.9 55 54

Out Wt 235 241 250 245 264.8

ADG 1.46 1.56 1.58 1.56 1.75

F/G 3.49 3.21 3.09 2.96 2.95

Mortality 3.0% 3.0% 3.1% 4.1% 3.9%

Grow-Finish

How We Have Improved

SGraphics1989

PigCHAMP1990

PigCHAMP1999

PigCHAMP2000

MetaFarms2008-2011

In wt 13 15.2 10.8 12.1 13

Out Wt 235 229.6 239 250 264.8

ADG 1.19 1.17 1.40 1.35 1.53

F/G 3.26 3.10 2.76 2.71 2.67

Mortality 3.85% 3.68% 6.12% 5.5%

Wean-Finish

Are we measuring the right thing?PIC Expected Intervention

Nursery 2280 2400

Grow-Fin 4140 4300

Wean-Fin 3920 3940

K State Expected Intervention

Nursery 2325 2475

Grow-Fin 4200 4500

Wean-Fin 3900 4200

kcal ME/ lb liveweight gain

Future Benchmarks

• We record expenses and performance on live weight basis but are paid on carcass weight basis.– If sell Hormel no live weight reported

• When will we begin thinking in terms of $/cwt carcass or carcass gain/unit of feed/energy?

USDA Federally Inspected Barrow and Gilt carcass wt, lb (1988-2011)

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

150

160

170

180

190

200

210

220

f(x) = 1.39695652173913 x + 170.579710144928R² = 0.979594704766453

Year

Lb Kg

At this pace, in 2022 live weights will average 290 lb based on 75% yield

68.2

77.3

90.9

86.4

95.5

81.8

72.7

100

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51250

255

260

265

270

275

280

IA-SMN Liveweight at Slaughter2011 2007-2011 2012 2013

Week

Lb

A conclusion is the place where you got tired of thinking.

-- Steven Wright

Swine Production Benchmarks

Dr Mike BrummBrumm Swine Consultancy, Inc

North Mankato, MN

Blog: www.Mnpork.com