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Guidelines for EstimatingSwine (26 to 121 kg) Finishing Cost2016in Manitoba

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Date: November, 2015

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Swine (26 to 121 kg) Finishing CostsGuidelines For Estimating

Based On Marketing 11,376 Pigs

This guide is designed to provide you with planning information and a format for calculating costs of production of a swine finishing 26 to 121 kg enterprise in Manitoba. This type of operation is intended to represent the third stage of a three stage pork system. General Manitoba Agriculture, Food and Rural Development (MAFRD) recommendations are assumed in using feed and veterinary inputs. These figures provide an economic evaluation of the livestock and estimated prices required to cover all costs. Costs include labour, investment and depreciation, but do not include management costs, nor do they necessarily represent the average cost of production in Manitoba.

These budgets may be adjusted by putting in your own figures. As a producer you are encouraged to calculate your own costs of production. The assumptions on which the costs are based are outlined in the supporting pages. These assumptions were arrived at using the breeding stock, management practices, and facilities seen in modern, well managed swine operations of comparable size in Manitoba. Productivity and performance assumptions are based on information collected by department specialists, feed companies and other organizations. Where individual herd productivity and performance levels differ from those listed, adjustments will be required.

Note: This budget is only a guide and is not intended as an in-depth study of the cost of production of this industry. Interpretation and use of this information is the responsibility of the user. If you need help with a budget, contact your local MAFRD GO Office.

The Farm Machinery Custom and Rental Rate www.manitoba.ca/agriculture

MAFRD GO Office.

http://www.gov.mb.ca/agriculture/business-and-economics/financial-management/machinery-costs.html

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Guidelines: Swine (26 to 121 kg) Finishing Costs 2

Manitoba Agriculture, Food and Rural Development

Swine (26 to 121 kg) Finishing Cost of Production

The rations illustrated in this budget are examples only. Individual farm conditions should be taken into account when formulating the diets. Producers need to know the feed intakes of their animals. Please consult with a nutritionist for diet information suggestions.

The Manitoba pork production industry profile is changing and this budget was specifically designed to address the need of producers who may want to analyze the cost of starting up or switching to a finishing 26 to 121 kg operation. Several companies are offering contracts with varying levels of guarantees. Producers need to accurately calculate their costs before they can properly make a decision.

The budget includes an assumption that this particular operation is "all-in, all-out" by room. Space allocations for finishing pigs are in accordance with Recommended Code of Practice for the Care and Handling of Farm Animals: Pigs.

The budget includes an assumption that 1.5% of the market pigs are sold as lightweight pigs. It is assumed that when light weight pigs are sold, they will have a salvage value. Therefore, total marketings are reduced by 2.44% to compensate for the lightweight pigs.

The following 26 to 121 kg budget is based on the assumption that all feed is purchased or home-mixed. The budget includes a land investment cost for 40 acres, with 0 acres rented out at $60 per acre, of the estimated 720 to 1114 acres of total landbase that would be required for this size of livestock operation. This land base falls within the 2XP2O5 application rate, soil phosphorus levels permitting.



$/Pig Total $/Pig Total Your A. Operating Costs Sold Cost Sold Cost Cost1. Feed Costs:

1.01 Grower 1 $14.27 $162,342 $15.16 $172,4671.02 Grower 2 $44.14 $502,157 $41.80 $475,5371.03 Finisher $20.31 $231,056 $17.19 $195,562

Total Feed Cost $78.72 $895,555 $74.15 $843,566

2. Other Operating Costs:2.01 Weanling Cost $66.79 $759,835 $66.79 $759,8352.02 Veterinary Medicine & Supplies $1.46 $16,600 $1.46 $16,6002.03 Maintenance & Repairs $1.58 $18,000 $1.58 $18,0002.04 Hydro & Propane $2.00 $22,720 $2.00 $22,7202.05 Insurance $1.66 $18,919 $1.66 $18,9192.06 Manure Costs $1.85 $21,034 $1.85 $21,0342.07 Office Supplies $0.11 $1,196 $0.11 $1,1962.08 Marketing & Transport $8.61 $97,951 $8.61 $97,9512.09 Property Tax $0.65 $7,350 $0.65 $7,350

Subtotal Operating Costs $163.42 $1,859,160 $158.85 $1,807,1712.10 Interest on Operating Costs $2.13 $24,271 $2.09 $23,789

Total Operating Costs $165.55 $1,883,431 $160.94 $1,830,960

B. Fixed Costs3. Depreciation:

3.01 Buildings & Manure Storage $3.69 $41,957 $3.77 $42,8573.02 Equipment $3.91 $44,517 $4.34 $49,395

Total Depreciation Cost $7.60 $86,474 $8.11 $92,252

4. Investment:4.01 Land $0.20 $2,250 $0.20 $2,2504.02 Buildings & Manure Storage $1.38 $15,748 $1.41 $15,7484.03 Equipment $0.61 $6,971 $0.67 $7,659

Total Investment Cost $2.19 $24,969 $2.29 $25,657Total Fixed Costs $9.80 $111,443 $10.39 $117,909

C. LabourWages, benefits and hired manager $4.39 $49,920 $4.39 $49,920

Total Cost of Production $179.74 $2,044,794 $175.73 $1,998,789

Estimated Farmgate Per Pig Total Per Pig TotalMarket Price ($ per 100kg) $160.00 $160.00Market weight (shrunk-kg/hog live) 118.05 118.05Dressing % 80 80Premium per head sold $2.00 $2.00Land rental per head sold $0.00 $0.00Gross Revenue / hog $168.21 $1,913,648 $168.21 $1,913,648

Marginal Returns Over Operating Costs $2.66 $30,216 $7.27 $82,689Over Operating & Labour Costs ($1.73) ($19,704) $2.88 $32,769Over Total Costs (Net Profit) ($11.53) ($131,146) ($7.51) ($85,483)Operating Expense Ratio 98.4% 95.7%

Breakeven Selling Price $/100 kg $/cwt $/100 kg $/cwt Operating Costs $155.48 $70.53 $151.15 $68.56Operating & Labour Costs $159.60 $72.39 $155.27 $70.43Operating, Fixed & Labour Costs $168.80 $76.57 $165.03 $74.86

Return On Assets (ROA) (4.15%) (1.74%)

Swine (26 to 121 kg) Finishing Summary - November, 2015Purchased Feed Home-Mixed Feed

Note: This budget is only a guide and is not intended to be an in-depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user. No liability for decisions based on this publication is assumed.

Profitability and Breakeven Analysis



Purchased Feed Home-Mixed FeedPer Pig Per Pig

A. Operating CostsFeed cost $78.72 $74.15Weanling cost $66.79 $66.79Other Operating Costs $20.04 $20.00Subtotal $165.55 $160.94

B. Fixed Costs $9.80 $10.39C. Labour $4.39 $4.39Total Costs $179.74 $175.73

Estimated FarmgatePrice ($ per cwt) $160.00 $160.00

Up DownPercent Market Price Variation 10.0% 10.0%

Percent Feed Cost Variation 10.0% 5.0%Percent Weanling Cost Variation 5.0% 5.0%

Higher Price ($ per 100kg) $176.00 $176.00Lower Price ($ per 100kg) $144.00 $144.00

Higher Feed Cost $86.59 $81.57Lower Feed Cost $74.78 $70.44

Higher Weanling Cost $70.13 $70.13Lower Weanling Cost $63.45 $63.45

Higher Margin Scenario - Price Up 10%, Feed Price Down 5% and Weanling Cost Down 5%Operating Costs $158.28 $153.89Total Costs $172.46 $168.68Gross Revenue / hog $184.83 $184.83Marginal Returns Over Operating Costs $26.56 $30.94 Over Operating & Labour Costs $22.17 $26.55 Over Total Costs (Net Profit) $12.37 $16.16Operating Expense Ratio 85.6% 83.3%Return on Asset (ROA) 7.80% 9.56%

Lower Margin Scenario - Price Down 10%, Feed Price Up 10% and Weanling Cost Up 5%Operating Costs $176.76 $171.69Total Costs $190.95 $186.48Gross Revenue / hog $151.59 $151.59Marginal Returns Over Operating Costs ($25.17) ($20.10) Over Operating & Labour Costs ($29.56) ($24.49) Over Total Costs (Net Profit) ($39.36) ($34.89)Operating Expense Ratio 116.6% 113.3%Return on Asset (ROA) (23.11%) (20.16%)

Note: This budget is only a guide and is not intended as an in depth study of the cost of production of this industry. Interpretation and utilization of this information is the responsibility of the user.

Risk & Sensitivity Analysis



1. This input table outlines the cost of production for a finishing enterprise2. Buildings and equipment are valued at new cost.3. Purchased or home-mixed feed is used.4. Manure haulage is contracted out.

Weanling Cost based on $65Market Price/100kg $160.00 or: $0.73 /lb 110 Market Index

Premium/head $2.00 80 % Dress

Indicators of ProductivityGrower 1 Grower 2 Finisher Total

Number of Pigs Purchased 12,000 11,886 11,773 12,000Average Beginning Weight (kg) 26.0 50.0 100.0 26Average Ending Weight (kg) 50.0 100.0 121.0 121Percent Mortality 0.95 0.95 0.95 2.8Days on Feed 23 65 28 116Feed Conversion Ratio 1.95 3.00 3.50 2.85Number of Pigs (Ending) 11,886 11,773 11,661 11,661Weight Gain/Pig (kg) 24.0 50.0 21.0 95.0Feed Disappearance/Pig (kg) 46.8 150.0 73.5 270.3Average Daily Gain (kg) 1.043 0.769 0.750 0.819Average Number Pigs in Barn 4,025 3,986 3,948 3,986

Productivity Profile Total

Pigs Purchased 12,000Pigs Died 339 2.8 % mortalityPigs available for marketing 11,661Less Light Weight Pig Adjustment 285 2.44 %Pigs Sold at full market value 11,376Washing and restocking days 7Total Days to Market 123Turnover (365 / days to market) 2.97

Feed Requirements and Costs

FCR * kg/pig Purchased Home-Mixed Grower 1 1.95 46.8 $289.00 $307.12 Grower 2 3.00 150.0 $279.00 $264.20 Finisher Ration 3.50 73.5 $262.00 $221.77

* FCR = Feed Conversion Ratio (Feed:Gain)

Labour

Total Hours per year 48.0 hours/week 2,496 hours/yearWage (includes hired manager) $20.00 /hour (weighted)

Swine (26-121 kg) Finishing Production Cost Assumptions

Ration Cost per tonne



4,040 Pig Places

/sq.ft Total /Pig Place Your CostBuildings

Barn 37,168 ft.2 $27.50 $1,022,120 $253.00Office & Loading 300 ft.2 $27.50 $8,250 $2.04Standby Generator $24,000 $5.94Feed Mill (building only) $25,000 $6.19Total Building Cost $1,079,370 $267.17

EquipmentFinishing Barn $470,000 $116.34Other $0 $0.00Fire Alarm System $1,000 $0.25Storage Bins $36,000 $8.91Feed Mill (equipment only) $50,000 $12.38Total Equipment Cost $557,000 $137.87

Total Buildings and Equipment Cost $1,636,370 $405.04

Land Value Land Investment 40 acres @ $1,500 $60,000 $14.85

Land Investment 0 acres @ $1,500 $0 $0.00

Other CostsSite preparation $30,000 $7.43Manure Storage $100,000 $24.75Total Other Costs $130,000 $32.18

Total Capital Investment $1,767,870 $437.59

NOTE: 1 sq.ft. = 0.0929 sq.m; 1 sq.m.= 10.764 sq.ft.; 1 ft.= 0.3048 m

¹ FOOTNOTE: The number of square feet in the building and the cost per square foot for buildings and equipment are approximations only. A certified building plan which is designed according to the average inventory of grower-finisher pigs should be used in order to get the exact dimensions and area for new buildings.

Capital Investment1



Fixed Costs

Depreciation (straight line):Useful Life:

Buildings 25 yearsEquipment 10 years

Salvage Value (% of original cost):Buildings 10.00 %Equipment 10.00 %

Investment Interest Rate 2.50 %

Other Operating CostsAverage market price $65.00 /cwt $143.30 /ckgWeanling Formula 1.70Purchase Weight 57.3 lbsHauling in $0.00 /pig purchased

Annual Veterinary Costs:Professional Services $600Medication $16,000

Maintenance & Repair 1.10 % of total capital investment

Hydro & Propane Hydro rate $0.053 per kwhrHydro usage 200,000 kwhrPropane rate $0.40 per litre

Propane usage 30,000 litres

InsuranceBuildings and equipment $0.78 /$100 Capital InvestedFeeder hogs $0.88 /$100 Capital InvestedBusiness Interruption $0.78 /$100 Capital InvestedBusiness Interruption Insured value $40.00 per feederEstimated Market Value of Hogs $140.00 /hog

Manure Costs:Storage volume 7.1 litres/pig/day ³

Cost / litre $0.0022 /litreCost / gallon $0.010 /gallon

Odour control (barley straw) $0 total costsManure Management Fee $3,000 total costs

Manure nutrient content nutrient fertilizer % nutrientlbs/1000 value value cost

litres $/lb recovery / saleTotal Nitrogen 3.4 0.491 60Phosphate (P2O5) 2.3 0.568 0Potassium 1.8 0.383 0

Marketing & Transport.Trucking in $3.50 /pig



Trucking out $4.00 /pigCouncil Levy $0.80 /pigGrading Charge $0.06 /pigTruck Washing $0.00 /pigInsurance $0.25 /pigSpecial Levy $0.00 /pig

Office Supplies $0.30 /pig place

Operating Loan Interest % 5.50 %

Property Tax:Grower-Finisher Barn & Land $7,350 /yearLand $4.35 /acre

Land Value for Grower-Finisher Operation:Number of Acres 40 acresNumber of Acres rented out 0 acresRental rate (income) $60 /acreLand Value per Acre $1,500 /acre

³ FOOTNOTE: 1 cubic metre = 1000 litres 1 cubic metre = 35.314 cubic feet 1 cubic metre = 219.97 imperial gallons



Price/tonne Your Cost Wheat $225.00 Barley $180.00 Corn $175.00 Soybean Meal - 47 % $510.00 Canola Meal - 34 % $310.00 Peas $240.00 Grower Micro Premix $3,000.00 Canola Oil $1,095.00 Whey Powder $677.00 Herring Meal $3,160.00 Plasma $5,720.00 Limestone $118.50 Dical (16% Ca-21% P) $950.00 Salt - 96% $276.50 Phytase $7,175.00 L-Lysine HCL $1,965.00 L-Threonine $4,655.00 DL-Methionine $8,020.00 Oats - Steam Rolled $205.00 Processing Costs: (Hydro, Repairs/Maintenance & Insurance) $5.00 Percent Weight loss due to processing $1.25 % Labour Cost $7.00

Ration Formulas Grower 1 Grower 2 FinisherRation Ration Ration

(kg) (kg) (kg) Wheat 475.00 200.00 0.00 Barley 215.00 597.00 834.00 Corn 0.00 0.00 0.00 Soybean Meal - 47 % 175.00 75.00 0.00 Canola Meal - 34 % 0.00 100.00 80.00 Peas 100.00 0.00 70.00 Grower Micro Premix 3.00 3.00 3.00 Canola Oil 10.00 8.00 0.00 Whey Powder 0.00 0.00 0.00 Herring Meal 0.00 0.00 0.00 Plasma 0.00 0.00 0.00 Limestone 12.00 10.00 8.00 Dical (16% Ca-21% P) 5.00 2.00 1.00 Salt - 96% 3.50 3.50 3.50 Phytase 0.50 0.50 0.50 L-Lysine HCL 1.00 1.00 0.00 L-Threonine 0.00 0.00 0.00 DL-Methionine 0.00 0.00 0.00 Oats - Steam Rolled 0.00 0.00 0.00 Total 1000 1000 1000

Feed Ingredient Costs



Total Feed Ingredients per Feeder Pig per Year -- Grower-Finisher BarnGrower 1 Grower 2 Finisher

Ration Ration Ration Total(kg/year) (kg/year) (kg/year) (kg/year)

Wheat 22.23 30.00 0.00 52.23 Barley 10.06 89.55 61.30 160.91 Corn 0.00 0.00 0.00 0.00 Soybean Meal - 47 % 8.19 11.25 0.00 19.44 Canola Meal - 34 % 0.00 15.00 5.88 20.88 Peas 4.68 0.00 5.15 9.83 Grower Micro Premix 0.14 0.45 0.22 0.81 Canola Oil 0.47 1.20 0.00 1.67 Whey Powder 0.00 0.00 0.00 0.00 Herring Meal 0.00 0.00 0.00 0.00 Plasma 0.00 0.00 0.00 0.00 Limestone 0.56 1.50 0.59 2.65 Dical (16% Ca-21% P) 0.23 0.30 0.07 0.61 Salt - 96% 0.16 0.53 0.26 0.95 Phytase 0.02 0.08 0.04 0.14 L-Lysine HCL 0.05 0.15 0.00 0.20 L-Threonine 0.00 0.00 0.00 0.00 DL-Methionine 0.00 0.00 0.00 0.00 Oats - Steam Rolled 0.00 0.00 0.00 0.00 Total Ration Used (kgs) 46.8 150.0 73.5 270.3



Ingredient RationAmount Price Cost

Grower 1 (kg) ($ /tonne) ($ /tonne) Your Cost Wheat 475.00 $225.00 $106.88 Barley 215.00 $180.00 $38.70 Corn Soybean Meal - 47 % 175.00 $510.00 $89.25 Canola Meal - 34 % Peas 100.00 $240.00 $24.00 Grower Micro Premix 3.00 $3,000.00 $9.00 Canola Oil 10.00 $1,095.00 $10.95 Whey Powder Herring Meal Plasma Limestone 12.00 $118.50 $1.42 Dical (16% Ca-21% P) 5.00 $950.00 $4.75 Salt - 96% 3.50 $276.50 $0.97 Phytase 0.50 $7,175.00 $3.59 L-Lysine HCL 1.00 $1,965.00 $1.97 L-Threonine DL-Methionine Oats - Steam Rolled Total 1,000.00 kg $291.48Adjusted For Weight Loss 1.25 % $295.12Plus Processing Cost $5.00 $300.12Plus Labour Cost $7.00 $307.12

Grower 2 Wheat 200.00 $225.00 $45.00 Barley 597.00 $180.00 $107.46 Corn Soybean Meal - 47 % 75.00 $510.00 $38.25 Canola Meal - 34 % 100.00 $310.00 $31.00 Peas Grower Micro Premix 3.00 $3,000.00 $9.00 Canola Oil 8.00 $1,095.00 $8.76 Whey Powder Herring Meal Plasma Limestone 10.00 $118.50 $1.19 Dical (16% Ca-21% P) 2.00 $950.00 $1.90 Salt - 96% 3.50 $276.50 $0.97 Phytase 0.50 $7,175.00 $3.59 L-Lysine HCL 1.00 $1,965.00 $1.97 L-Threonine DL-Methionine Oats - Steam RolledTotal 1,000.00 kg $249.09Adjusted For Weight Loss 1.25 % $252.20Plus Processing Cost $5.00 $257.20Plus Labour Cost $7.00 $264.20

Home-Mixed Feed Requirement and Cost Summary



Finisher Ration: Wheat Barley 834.00 $180.00 $150.12 Corn Soybean Meal - 47 % Canola Meal - 34 % 80.00 $310.00 $24.80 Peas 70.00 $240.00 $16.80 Grower Micro Premix 3.00 $3,000.00 $9.00 Canola Oil Whey Powder Herring Meal Plasma Limestone 8.00 $118.50 $0.95 Dical (16% Ca-21% P) 1.00 $950.00 $0.95 Salt - 96% 3.50 $276.50 $0.97 Phytase 0.50 $7,175.00 $3.59 L-Lysine HCL L-Threonine DL-Methionine Oats - Steam RolledTotal 1,000.00 kg $207.18Adjusted For Weight Loss 1.25 % $209.77Plus Processing Cost $5.00 $214.77Plus Labour Cost $7.00 $221.77



A. Operating Costs Your Cost

1. Feed Requirements and Costs

1.01 Grower 1 - Purchased Feed24.0 kg weight gain/pig

x 2.0 feed conversion ratio= 46.8 kg ration/pigx $289.00 /tonne ration÷ 1,000 kg/tonnex 12,000 weanlings purchased÷ 11,376 pigs sold= $14.27 /pig sold

1.02 Grower 2 - Purchased Feed50.0 kg weight gain/pig


1.03 Finisher Ration - Purchased Feed21.0 kg weight gain/pig


1.04 Grower 1 - Home Mixed Feed24.0 kg weight gain/pig


1.05 Grower 2 - Home Mixed Feed50.0 kg weight gain/pig

x 3.0 feed conversion ratio= 150.0 kg ration/pigx $264.20 /tonne ration÷ 1,000 kg/tonne

Swine Finishing Production Cost Worksheet



x 12,000 weanlings purchased÷ 11,376 pigs sold= $41.80 /pig sold

1.06 Finisher Ration - Home Mixed Feed21.0 kg weight gain/pig


2. Other Operating Costs

2.01 Weanling Cost$65.00 market price

÷ 100 lbs/cwtx 57 lbsx 1.7 formula factorx 12,000 weanlings purchased÷ 11,376 pigs sold= $66.79 /pig sold

2.02 Veterinary Cost$600.00 professional services

+ $16,000.00 medication÷ 11,376 pigs sold= $1.46 /pig sold

2.03 Maintenance & Repairs1.10 % of total capital investment

x $1,636,370 total buildings and equipment cost÷ 11,376 pigs sold= $1.58 /pig sold

2.04 Utilities$10,600 hydro

+ $12,120 propane÷ 11,376 pigs sold= $2.00 /pig sold

2.05 Insurance$1,636,370 buildings & equipment

x $0.78 /$100 ÷ 100 /$100 capital ÷ 11,376 pigs sold= $1.12 /pig sold

3,986 average number pigs in barnx $140.00 average valuex $0.88 /$100 ÷ 100 /$100 capital



÷ 11,376 pigs sold= $0.43 /pig sold

$40.00 insured valuex 3,986 average number in barnx $0.78 rate /$100÷ 11,376 pigs sold= $0.11 /pig sold

= $1.66 /pig sold

2.06 Manure Costs Haulage 7.1 litres/pig/day

x 365 days/yearx 3,986 average inventory of pigsx $0.002 /litre÷ 11,376 pigs sold= $2.00 /pig sold

Estimated Nutrient Value7.1 litres/pig/day

x 365 days/yearx 3,986 average inventory of pigs÷ 1,000= 10,331 # of 1000 litres of manureNitrogen

3.4 kg per 1000 litresx 10,331 # of 1000 litres of manurex 60 % nutrient value recovery÷ 2.2046 lbs per kgx $0.49 fertilizer value per lb.÷ 11,376 pigs sold= $0.41 estimated nutrient value / pig soldPhosphate

2.3 kg per 1000 litresx 10,331 # of 1000 litres of manurex 0 % nutrient value recovery÷ 2.2046 lbs per kgx $0.57 fertilizer value per lb.÷ 11,376 pigs sold= $0.00 estimated nutrient value / pig soldPotassium

1.8 kg per 1000 litresx 10,331 # of 1000 litres of manurex 0 % nutrient value recovery÷ 2.2046 lbs per kgx $0.38 fertilizer value per lb.÷ 11,376 pigs sold= $0.00 estimated nutrient value / pig sold

Odour control & Mgmt Fees$3,000 total cost11,376 pigs sold



$0.26 /pig sold

Total $1.85 /pig sold

2.07 Office Supplies$0.30 /pig place

x 3,986 pig places÷ 11,376 pigs sold= $0.11 /pig sold

2.08 Marketing & Transportation$3.50 trucking in

+ $4.00 trucking out+ $0.80 council levy+ $0.06 grading charge+ $0.25 insurance+ $0.00 Special levy= $8.61 /pig sold

2.09 Property Taxes$7,350 taxes on barn and land

÷ 11,376 pigs sold= $0.65 /pig sold

$4.35 taxes on landx 0 acres÷ 11,376 pigs sold= $0.00 /pig sold


2.10 Interest on Operating Cost - Purchased Feed$66.79 weaner cost

x 123 total days to marketx 5.5 % operating rate÷ 365 days/year= $1.24 /pig sold

$163.42 subtotal operating cost- $66.79 weaner cost÷ 2 averagex 123 total days to market÷ 365 days/yearx 5.5 % operating rate= $0.90 /pig sold

= $2.13 /pig sold

Interest on Operating Cost - Home Mixed Feed$66.79 weaner cost

x 123 total days to marketx 5.5 % operating rate÷ 365 days/year= $1.24 /pig sold



$158.85 subtotal operating cost- $66.79 weaner cost÷ 2 averagex 123 total days to market÷ 365 days/yearx 5.5 % operating rate= $0.85 /pig sold

= $2.09 /pig sold

B. Fixed Costs3. Depreciation

Original cost - Salvage Value Useful Life

3.01 Buildings - not including feedmill$1,154,370 total building cost (including earthen

manure storage)- $105,437 salvage value (building only)÷ 25 years useful life÷ 11,376 pigs sold= 3.69 /pig sold

3.02 Equipment - not including feedmill$507,000 total equipment cost

- $50,700 salvage value÷ 10 years useful life÷ 11,376 pigs sold= 3.91 /pig sold

3.03 Buildings - including feedmill$1,179,370 total building cost (including earthen

manure storage)- $107,937 salvage value (building only)÷ 25 years useful life÷ 11,376 pigs sold= 3.77 /pig sold

3.04 Equipment - including feedmill$557,000 total equipment cost

- $55,700 salvage value÷ 10 years useful life÷ 11,376 pigs sold= 4.34 /pig sold

4. Investment Cost

(Original Cost + Salvage Value) X Investment Rate 2

4.01 Land for Barn Site$60,000 land investment

+ $30,000 site preparation



x 2.5 % investment rate÷ 11,376 pigs sold= 0.20 /pig soldLand for manure application

$0 land investmentx 2.5 % investment rate÷ 11,376 pigs sold= 0.00 /pig sold


4.02 Buildings - not including feedmill$1,154,370 total building cost (including earthen

manure storage)+ $105,437 salvage value (building only)÷ 2 averagex 2.5 % investment rate÷ 11,376 pigs sold= 1.38 /pig sold

4.03 Equipment - not including feedmill$507,000 total equipment cost

+ $50,700 salvage value÷ 2 averagex 2.5 % investment rate÷ 11,376 pigs sold= 0.61 /pig sold

4.04 Buildings - including feedmill$1,179,370 total building cost (including earthen

manure storage)+ $107,937 salvage value (building only)÷ 2 averagex 2.5 % investment rate÷ 11,376 pigs sold= 1.41 /pig sold

4.05 Equipment - including feedmill$557,000 total equipment cost

+ $55,700 salvage value÷ 2 averagex 2.5 % investment rate÷ 11,376 pigs sold= 0.67 /pig sold

5. Labour Cost2496 total hours/year

x $20.00 /hour÷ 11,376 pigs sold= 4.39 /pig sold



11,661 Pigs available for marketing (includes lightweights)

Total per Total Total Total perPig Mkt per Year per Month Pig Mkt

(kgs) (tonnes) (tonnes) (lbs) Grower 1 46.80 545.73 45.48 103.18 Grower 2 150.00 1,749.15 145.76 330.69 Finisher Ration 73.50 857.08 71.42 162.04 Total 270.30 3,151.97 262.66 595.90

Total Total Total Total per Pig per Year per Month per Pig

(kgs) (tonnes) (tonnes) (lbs) Wheat 52.23 609.05 50.75 115.15 Barley 160.91 1,876.38 156.37 354.74 Corn 0.00 0.00 0.00 0.00 Soybean Meal - 47 % 19.44 226.69 18.89 42.86 Canola Meal - 34 % 20.88 243.48 20.29 46.03 Peas 9.83 114.57 9.55 21.66 Grower Micro Premix 0.81 9.46 0.79 1.79 Canola Oil 1.67 19.45 1.62 3.68 Whey Powder 0.00 0.00 0.00 0.00 Herring Meal 0.00 0.00 0.00 0.00 Plasma 0.00 0.00 0.00 0.00 Limestone 2.65 30.90 2.57 5.84 Dical (16% Ca-21% P) 0.61 7.08 0.59 1.34 Salt - 96% 0.95 11.03 0.92 2.09 Phytase 0.14 1.58 0.13 0.30 L-Lysine HCL 0.20 2.29 0.19 0.43 L-Threonine 0.00 0.00 0.00 0.00 DL-Methionine 0.00 0.00 0.00 0.00 Oats - Steam Rolled 0.00 0.00 0.00 0.00 Total 270.30 3,151.97 262.66 595.90

Created and maintained by November, 2015Robyn Harte Roy ArnottBusiness Development Specialist - Swine Farm Management Specialist

For more information, contact your local

Summary of Home-Mixed Feed Ingredients Used

Summary of Purchased Feeds Used

MAFRD GO Office

MAFRD Farm Business Management Specialist or

mailto:[email protected]

mailto:[email protected]

http://www.gov.mb.ca/agriculture/contact/index.html

http://www.gov.mb.ca/agriculture/business-and-economics/farm-business-management-contacts.html

ESR-014719 January 2015

For more information• ContactyourlocalManitobaAgriculture,

FoodandRuralInitiatives(MAFRI)GrowingOpportunities(GO)Office.

• Visitusatmanitoba.ca/agriculture.

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