MSU Extension Publication Archive. Scroll down to view the publication.

Similar documents
MSU Extension Publication Archive. Scroll down to view the publication.

Using Seasonal Hog Price Patterns in Marketing

Title: Development of Condition Scoring Guide using live animals - NPB #05-172

HOG INDUSTRY NEEDS MORE DOWNSIZING IN 2004

HOG PRODUCERS SHOW LITTLE SIGN OF RETREAT

JUNE 2002 HOGS AND PIGS SUMMARY AND ANALYSIS

Hog Producers Show Little Sign of Retreat

HOGS VS. ETHANOL: ETHANOL WINS!

Feeder Pig Marketing Techniques

Pork Industry Makes Turn for the Better

EASTERN CORN BELT DELAYS CONTINUE, MORE FARM PROGRAM DETAILS

CATTLE MAY HAVE A DECENT, BUT VOLATILE YEAR

October 1, 1996 Ames, Iowa Econ. Info. 1703

Hog Industry Ask Where All the Pigs Came From?

Revised Estimated Returns Series Beginning in 2007

Trends in the Missouri Swine Industry

TIMELY INFORMATION. DAERS 08-4 August Making Adjustments To The Cattle Herd Due To Higher Production Costs

HAPPY DAYS FOR HOG PRODUCERS CONTINUE

Livestock Outlook for 2010

Cattle and Hog Outlook 2010 and Beyond. John D. Lawrence Extension Livestock Economist Iowa State University

The Big Hog Cycle What goes down, must go up?

HOG PROFITS NARROW AS CORN PRICE RISKS RISE

Telephone: (706) Animal and Dairy Science Department Rhodes Center for Animal and Dairy Science

Cost and Return per Lamb - Long Range

Dairy Outlook. June By Jim Dunn Professor of Agricultural Economics, Penn State University. Market Psychology

Why Does the U.S. Both Import and Export Beef? Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

Hog Producers Near the End of Losses

LITTLE EXPANSION, BUT LITTLE PROFIT AS WELL FOR PORK PRODUCERS

.~ A joou [MIbIXmoll 0 t:b~~jmubmelu.lji ~io.1itudl OOnOOJJliA, Co1J~ M~bw: '. 11il IJlli7mL1)'i; W5t 1a:Ill}'1:I~.Lndi c

Understanding Hog Production and Price Cycles

Hog Enterprise Summary

Marketing Cull Cows How & When?

Crunching the Numbers for Taxes and Analysis. Chris Prevatt University of Florida, Range Cattle REC Extension Economist

S. Aaron Smith, Michael P. Popp and Nathan Kemper. Executive Summary

Farrowing Systems Their Effects on Returns in Hog Production

May 17, 1996 Ames, Iowa Econ. Info PLANTINGS LAG IN EASTERN CORN BELT & SPRING WHEAT AREAS

GRAIN PRICES TO REFLECT STARLINK, SOUTH AMERICAN WEATHER, AND FARMER MARKETING PATTERNS

Backgrounding Calves Part 1: Assessing the Opportunity

SEPTEMBER HOGS AND PIGS REPORT ANALYSIS

USDA HOGS AND PIGS REPORT CONFIRMS LIQUIDATION

Global Price and Production Forecast

Cattle & Beef Outlook

Swine Production Records

October 1998 ARPR 98-03

Emmit L. Rawls Professor Agricultural Economics

Fall Calving in North Dakota By Brian Kreft

Dairy Outlook. October By Jim Dunn Professor of Agricultural Economics, Penn State University. Market Psychology

Feed Grain Outlook June 27, 2016 Volume 25, Number 37

Iowa Farm Outlook. December 15, 2004 Ames, Iowa Econ. Info. 1900

Intro to Livestock Marketing Annie s Project. Tim Petry Livestock Economist 2018

SOUTH AMERICAN SOYBEAN CROP ESTIMATE INCREASED

Iowa Farm Outlook. Department of Economics July, 2011 Ames, Iowa Econ. Info % chg % chg

The Value of Improving the Performance of your Cow-Calf Operation

LAGGING EXPORTS SLIGHTLY NEGATIVE TO CORN PRICES

Feed Grain Outlook June 26, 2018 Volume 27, Number 38

APPLIED PRICE FORECASTING

Iowa Farm Outlook. April 2015 Ames, Iowa Econ. Info March Hogs and Pigs Analysis

Impact of Higher Corn Prices on Feed Costs

Seasonal Trends in Steer Feeding Profits, Prices, and Performance

Livestock Enterprise. Budgets for Iowa 2010 File B1-21. Ag Decision Maker

Cattle Market Situation and Outlook

Livestock Enterprise. Budgets for Iowa 2008 File B1-21. Ag Decision Maker

Economic Impacts from Increasing Pig Farrowing in Iowa

OUTLOOK FOR THE U.S. LIVESTOCK AND POULTRY SECTORS

Hog and Pork Situation and Outlook

US Imported Beef Market A Weekly Update

Creating Cash Flow and Wealth with Cattle. Wally Olson

Marketing 2018 Feeder Calves

Cattle Situation and Outlook

TOC INDEX. Basis Levels in Cattle Markets. Alberta Agriculture Market Specialists. Introduction. What is Basis? How to Calculate Basis

April 2013 Livestock Market Update Public Policy Department Budget & Economic Analysis Team

Cattle Cycle. Basis Estimates, Monthly Average Prices and Slaughter Facility Information. Job Springer, Dan Childs, Steve Swigert and Jeri Donnell

Cattle Cycle. Basis Estimates, Monthly Average Prices and Slaughter Facility Information. Dan Childs and Steve Swigert

CHALLENGES FOR IMPROVING CALF CROP

Small Scale/Pasture Raised Pork. Jim Humphrey Livestock Specialist and Dr. Tim Safranski University of Missouri Extension

Two-litter Outdoor Farrowing System Budget

TEXAS A8cM UNIVERSITY TEXAS AGRICULTURAL EXTENSION SERVICE

Beef Cattle Market Outlook & Cow-Calf Decision-Making Overview

Cull Cow Marketing And Feeding Alternatives. Dillon M. Feuz - Utah State University and John P. Hewlett University of Wyoming

SOYBEANS: SMALLER STOCKS, MORE ACRES, AND EARLY WEATHER WORRIES

Iowa Farm Outlook. July 2017 Ames, Iowa Econ. Info Large Hog Supplies Should be Manageable

Situation and Outlook of the Canadian Livestock Industry

3/17/2016. Ross Pruitt Associate Professor. What is happening? What may happen? Economic/management considerations

2016 Risk and Profit Conference General Session Speakers. GENERAL SESSION IV Livestock Market Situation and Outlook

Iowa Farm Outlook. February 2017 Ames, Iowa Econ. Info Livestock Market Adjustments and Opportunities

of Pork Industry Productivity. pork.org

Cattle Feeder's Planning Guide

TRADE-OFF BETWEEN COW NUMBERS, CALF SIZE, AND SALE DATE INCORPORATING SEASONAL FACTORS AND SUPPLEMENTAL FEEDING

Livestock Enterprise. Budgets for Iowa 2017 File B1-21. Ag Decision Maker

Impact on Hog Feed Cost of Corn and DDGS Prices

Chapter Fourteen: SUMMARY AND CONCLUSIONS

Developing a Forage Management Strategy to Maximize Fall and Winter Grazing

Report on Minnesota Farm Finances. August, 2009

Long Calving Seasons. Problems and Solutions

Weekly Hog Report Cash Slaughter Weight Hog Prices Futures Markets

Grain Prices Remain Sensitive to Weather, Export Developments

Economic Outlook of Beef Cattle

Hog Market Outlook and Pricing Methods

Looking Ahead: 2014 Livestock and Grain Economic Outlook

Economics of Finishing Pigs in Hoop Structures and Confinement: A Summer Group under Different Space Restrictions

Transcription:

MSU Extension Publication Archive Archive copy of publication, do not use for current recommendations. Up-to-date information about many topics can be obtained from your local Extension office. Marketing Cull Sows: Pork Industry Handbook Michigan State University Extension Service Ronald L. Plain, University of Missouri; Gerald Shurson, Ohio State University Issued April pages The PDF file was provided courtesy of the Michigan State University Library Scroll down to view the publication.

MARKETING ETENSION BULLETIN E- APRIL (NEW) COOPERATIVE ETENSION SERVICE MICHIGAN STATE UNIVERSITY Marketing Authors: Ronald L. Plain, University of Missouri Gerald C. Shurson, Ohio State University Some of the common questions pork producers ask is: What do I do with my cull sows? Should I move them to market as soon as possible or should I feed them for a few weeks? And if I do feed, how many weeks is best? The answer is the same as for most marketing questions It depends! There are four factors that should be considered before making a decision about when to market sows. Condition of the Sow Probably the most important factor in determining the advisability of feeding is the condition of the sow when the litter is weaned. Light, thin sows that have weaned heavy litters and have lost a lot of weight during lactation are usually better prospects for feeding than heavy sows. Another aspect to consider is the overall health of the sow at weaning. Lame or seriously ill sows frequently do not regain weight quickly and may be poor prospects for feeding. There are two primary reasons for feeding cull sows: to allow them time to dry up and thereby avoid any discount on wet sows, and to gain back some of the weight lost during lactation. These are both good reasons. Light sows will often receive a larger discount for being wet than will heavy sows and will usually regain lost weight faster on less feed. It will usually require about a week of feeding after weaning to avoid a discount for wet sows. Unfortunately, the sow will not gain much weight during the first week after weaning. In fact, research indicates that a sow will lose %-6% of her body weight during the first week after weaning, even if she is on a self-feeder. Table presents what may be a typical growth response for a post-weaning sow on full feed. She will usually lose weight for about a week, then gain weight very rapidly for - wk., and then finally gain weight more Cull Sows Reviewers: John and Deborah Brian, Zachary, Louisiana Chris Hurt, Purdue University Robert and Karen Metz, Browns Valley, Minnesota James R. Simpson, University of Florida Table. Typical weights and feed consumption by a lb. cull sow After Weaning Sow Weight Total Feed Consumed (Lb.) 6 slowly. However, research indicates there is a great deal of variation among sows. Little research has been done on the best ration to feed cull sows. From a logistics perspective, feeding either a standard gestation ration or a finishing ration should be adequate. In general, the older and larger an animal is, the more difficult feed conversion becomes. Very young pigs can gain lb. of body weight on less than lb. of feed. As the pig matures it requires more feed per pound of gain. A lb. pig will need about lb. of feed per pound of gain. A mature sow on full feed may eat - lb. of feed per pound of gain; ECEPT when compensatory gain is involved. Compensatory gain is the term used to describe the recovery growth that usually occurs after an animal has lost weight. This growth is frequently very rapid and feed efficient. It is compensatory gain that can make sow feeding profitable. For sows, this rapid growth phase will usually begin about wk. after weaning and will continue until most of the lost weight is regained. When compensatory gain stops, it is probably time to market the sow. The sow may still appear to be doing well, but this is a result of the tremendous amount of feed that she is eating. It is hard to make money with feed conversion rates of to I..8.

Expected Change in Sow Prices The second factor to consider is the expected changes in sow prices. The producer may have to take a discount of a dollar per hundredweight or more if sows are marketed wet. Discounts of $-$/cwt. are typical. Therefore, sale price can usually be increased simply by holding cull sows until their udders dry up. In addition to the discount for wet sows, the sow feeder must also anticipate changes in sow prices. These are difficult to forecast accurately, but usually follow market hog price movements. Sow prices have a seasonal pattern. They tend to rise in summer and winter and decline in spring and fall. Figure shows the Seven Market average weekly price for sows for the period -8. The seven markets included are National Stock Yards (St. Louis), Kansas City, Omaha, Sioux City, South St. Joseph, South St. Paul and Indianapolis. The most likely periods for increasing sow prices are mid-december through mid-february, June and August. The periods from mid-february through May and September to early December are characterized by declining sow prices. Of course, there is no guarantee the future will be just like the past, but seasonal patterns are hard to break. During periods of rising sow prices, feeding cull sows has three advantages. The discount on wet sows is avoided, compensatory gain is exploited, and the benefits of a rising market are received. Price of Feed The third factor the prospective sow feeder should consider is feed cost. For any swine operation, feed is the major cost. In choosing to feed cull sows, the pork producer is betting that the value of the gain will be more than the feed and nonfeed costs. Table contains estimates of the net gain from feeding a lb. cull sow as compared to selling her immediately after weaning as a wet sow. periods of to wk. are illustrated along with feed costs of c, c and c per lb. In Table, the price received for fed sows is either equal to the base price for wet sows or $, $, or $ above the initial price of wet sows. The cost of labor, interest, facilities and other nonfeed expenses is set at $. per sow per week. As would be expected, feed cost and changes in sow prices are the keys to net gain. Returns vary greatly caseby-case, but tend to be maximized after about wk. of feeding. Table presents the price increase over wet sow prices needed to break even for different length feeding periods and different feed prices. For example, a wk. feeding period requires a sow price increase of 6c /cwt. over the wet sow price to cover total costs when sow feed costs c/lb. and nonfeed costs are $./wk. For c and c feed, sow price increases of $./cwt. and $.6/cwt., respectively, are needed to cover costs. Table assumes sow feeding performance as outlined in Table. Table uses the Seven Market weekly average sow prices for -88 (Figure I) in combination with sow feeding performance described in Table to present the most profitable sow feeding periods for different weeks of the year and different feed prices. For example, over the yr. period -88, cull sows whose litters were weaned during the first week of the year would have earned the s x Q Z t I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC Figure. Seven market weekly average sow price, -8.

Table. Estimated gain from feeding a lb. cull sow After Weaning Sow Weight (lb.) Total Feed Consumed (lb.) 6 6 6 6 Sow Price Increase Over Sow. -.6 -... -... 8. -.6.6.8. -...6. -. -... Profit ($/sow)* Feed Price (c/lb.):. -8. -. -.6.6 -.86 -.6. 6. -. -.66. 6.8-8.8 -. -..8 -. -. -. -. * Assumes nonfeed cost of $./wk. and a wet sow price of $/cwt.. -.8 -.8 -.8. -.8 -..8.8 -. -. -.6.8 -.6 -. -. -.6 -. -. -. -. Table. Increase in price above wet sow price needed to break even when feeding a lb. cull sow After Weaning Sow Price Increase Needed Feed Price («/ lb.)...6.6.. Assumes nonfeed price of $/< :wt.......6..8..6..6 cost of $./wk. and a wet sow greatest net return if fed for wk. before marketing (assuming feeding costs and performance described earlier). For litters weaned during the 8th week (mid-july), a wk. feeding period would have been most profitable with c/lb. sow feed; a wk. feeding period optimal with e feed (and a wet sow dock of at least 8c/cwt.); and a wk. feeding optimal with c/lb. feed (and a wet sow dock of $.8/cwt. or greater). If the dock for selling wet sows was less than the minimums specified in Table, then feeding cull sows was not profitable and sows should have been sold wet. During mid-october (weeks and ), selling wet sows would have been the most profitable alternative unless the wet sow dock was well above $/cwt., and then only a wk. feeding period would have been advisable. Ease of Handling The fourth item to consider is the ease with which sow feeding fits the swine operation. In order to feed cull sows profitably, the pork producer must have adequate facilities and labor available. During the summer, sows may require supplemental cooling in order to achieve satisfactory rates of gain. Proper shelter is important during cold or wet weather. A very real prospect to keep in mind is the possibility of declining sow prices during the feeding period. If sow prices do drop sharply, no amount of compensatory gain will offset the loss. If you cannot handle the risk, selling wet sows may be the best option. Summary Pork producers have a choice every time they cull a sow: to feed or not to feed. There are conditions under which it appears that selling sows shortly after weaning is the best choice if the sow is lame, you are short on facilities, have heavy sows that lost little weight during lactation, have high feed costs, or expect a decline in sow prices. However, in general, it appears that a - wk. feeding program can be profitable, especially during months in which seasonal uptrends in prices are expected. Beyond wk., the sow probably will experience little additional compensatory gain and consequently feed conversion should drop sharply. Any added profit will have to come on the strength of rising sow prices.

Table. sow feeding duration for lb. cul sows, -88*. Month Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Week of Year Litter Is Weaned 6 8 6 8 6 8 6 8 6 8 Assumes nonfeed cost of $./wk. e Feed.....68....8...6.88.8..8..6.6.88......68..........8..........6..88.... e Feed **lf the dock for wet sows is less than given amount, then selling wet sows is advised.......6.8.......6..6.6...........8......6...8.8.6.88...6.....8.8... e Feed.6....66.88....8...86.8.....8.......66..8.....8.........6....6..8.6... HMSU is an Affirmative Action/Equal Opportunity Institution. Extension programs are available to all without regard to race, color, national origin, sex or handicap. Issued in furtherance of Cooperative Extension work in agriculture and home economics, acts of May 8, and June,, in cooperation with the U.S. Department of Agriculture. J. Ray Gillespie, Interim Director, Cooperative Extension Service, Michigan State University, E. Lansing, Ml 88. New : M-KDP-UP, «, single copy free to Michigan residents. -86