PIG PRODUCTIONPIG PRODUCTION

What you should learn in this section:What you should learn in this section:

The role that vets play in the pig industryThe role that vets play in the pig industryThe structure of the Aussie pig industryThe structure of the Aussie pig industryOverseas markets & how they impact usOverseas markets & how they impact usHow production efficiency and volume are How production efficiency and volume are measured in pig herds and what impacts on measured in pig herds and what impacts on thesetheseWhat it costs to produce pig meat & what What it costs to produce pig meat & what contributes to this costcontributes to this costDifferent methods of housing pigs and how Different methods of housing pigs and how they performthey perform

The role that vets play in the pig industryThe role that vets play in the pig industry

Fire engine calls & S4sFire engine calls & S4sSpecialist consultantsSpecialist consultantsRegulatoryRegulatory--AQUIS, BAAQUIS, BAPharmaceutical companiesPharmaceutical companiesIndustryIndustry--APL, Welfare, AAPVAPL, Welfare, AAPVResearchResearch-- pig & humanpig & humanPublic healthPublic health

What does the vet do on the pig farm?What does the vet do on the pig farm?

Herd profitability

Cost of production

(c/kg)Volume

(Kg meat)

Growing herd efficiency

Breeding herd efficiency

health nutrition management genetics environment

Role of the consultant vetRole of the consultant vet

Monitor performance & productivityMonitor performance & productivityconduct regular farm visits (monthlyconduct regular farm visits (monthly--66--monthly)monthly)Know how things should be (targets)Know how things should be (targets)Know how things areKnow how things areCompare performance to targetsCompare performance to targets

Manipulates the relationship between potential Manipulates the relationship between potential pathogens and farm / herd environment / pathogens and farm / herd environment / management /genetics /welfare / immunity / nutrition management /genetics /welfare / immunity / nutrition / reproduction to get the best possible result/ reproduction to get the best possible result

How do you monitor herd health?How do you monitor herd health?

Farm visitsFarm visitsAnalyse recordsAnalyse recordsClinical observationClinical observationAssess environment & managementAssess environment & managementNecropsiesNecropsiesInspections during processingInspections during processing

What is the end result? A herd health What is the end result? A herd health planplan

MedicationMedicationManagementManagementEnvironmentEnvironmentBiosecurityBiosecurity

The structure of the Aussie pig industryThe structure of the Aussie pig industry

2626thth in the world in the world 364Kt 364Kt CWtCWt vsvs China 41,600KtChina 41,600Kt

Average slaughter weight increasingAverage slaughter weight increasing55kg in 1980 … 74kg in 200155kg in 1980 … 74kg in 2001

Import mainly from Canada and DenmarkImport mainly from Canada and DenmarkExport to Japan, Singapore and NZExport to Japan, Singapore and NZWe eat 18.8kg pig meat per headWe eat 18.8kg pig meat per head

Ranked 23Ranked 23rdrd in the worldin the worldVs 77kg in DenmarkVs 77kg in Denmark

Per capita consumption of pork-selected countries-calender year 2000 (from PigStats, 2002)

The Aussie Pig IndustryPercentage of sows by state

NSWQldVicSAWATas

28%

22%22%15%

12% 1%

The Aussie pig industryThe Aussie pig industry

Number of pig producers is decreasingNumber of pig producers is decreasing

49,537 in ’60……2,914 in ’0149,537 in ’60……2,914 in ’01

Average herd size is increasing

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

020406080

100120140

Year

Average herd size

Average herd size is increasing (’79=16 sows…’99=101 sows)

Fate of Pig meat in Australia Fate of Pig meat in Australia 10/10/0410/10/04

Pig meat consumed in Australia.Pig meat consumed in Australia.Includes imported pork which makes up 60% of processed Includes imported pork which makes up 60% of processed

porkpork

Fresh porkFresh pork Processed porkProcessed pork(40%)(40%) (60%)(60%)

Butchers Supermarkets Butchers Supermarkets Ham Bacon OtherHam Bacon OtherPorkPork

(22%)(22%) (60%)(60%) (35%) (40%) (25%)(35%) (40%) (25%)

Other fresh (18%)Other fresh (18%)

Overseas markets & how they Overseas markets & how they impact usimpact us

Recent challenges for the Australian Recent challenges for the Australian industryindustry

Low pricesLow pricesHigh Aussie dollar hindering exportsHigh Aussie dollar hindering exportsPrice competition from importsPrice competition from imports

High feed prices (drought)High feed prices (drought)

We import pig meat from:

What type of meat is imported?

We export pig meat to:

We export pig meat as:

Perfect Match?Perfect Match?Domestic salesDomestic sales

<75kg carcass wt, mixed gender, <15mm <75kg carcass wt, mixed gender, <15mm backfatbackfatJapanJapan

8080--95kg dressed wt, gilts/barrows95kg dressed wt, gilts/barrowsHong KongHong Kong

Mainly frozen, boned carcassesMainly frozen, boned carcassesIndiaIndia

Male carcasses (100kg)Male carcasses (100kg)TaiwanTaiwan

Testicles ($2.20/kg)Testicles ($2.20/kg)KoreaKorea

Mainly frozen, belliesMainly frozen, bellies

2 minute quiz2 minute quiz

How would you assess the health status How would you assess the health status of a herd during a farm visit?of a herd during a farm visit?

How production efficiency and volume How production efficiency and volume are measured in pig herds and what are measured in pig herds and what

impacts on theseimpacts on these

The production systemThe production system

Breeding Breeding -- about 1 weekabout 1 weekNatural +/Natural +/-- AIAI

Gestation Gestation -- about 16 weeksabout 16 weekscrates, penscrates, pens

Farrowing Farrowing -- 22--5 weeks5 weeksWeaner Weaner -- 22--10wks10wksGrower/finisher Grower/finisher -- 1010--25wks25wks

Keys to success:

Contain costs

Meet mating targets

Fill sheds

Sell at heavy weights

Use feed efficiently (no wastage)

Optimise health and genetics

Costs of ProductionCosts of Production

Average ($/kg LWT)

Feed 1.20Labour (paid) 0.18Other costs 0.21Total operating costs 1.59Capital costs 0.20Owners labour 0.21Total costs 2.00 = $200/pig

Range: $1.30 > $2.00/kglwt

Components of cost of production

010

203040

5060

7080

Health%

Herd%Shed%Feed%Labour%

Overhead%

% 20012002

Fixed cost of productionFixed cost of production

Average ($/kg LWT)Sow feed 0.24Labour (paid) 0.18Other costs 0.21Capital costs 0.20Owners labour 0.21Total fixed costs 1.04

(Total cost: ~ $2.00)

Production cost structureProduction cost structure

%Animal health 4

Power and Gas 1.9Feed 56

Labour 15Overheads 18

What determines prices?What determines prices?

SeasonalSeasonalImportsImportsExport demand (25% pork exported)Export demand (25% pork exported)

Profit is driven by the cost of feed

Breeding herd Growing herd

Kg meat sold/m2

floor spacePigs weaned per sow per year

Kg/pigNo. pigs/m2

floor spacePigs

weaned/litterLitters/sow/

yr

Physical herd performance

Physical performancePhysical performance--efficiency targets:efficiency targets:

Litters/sow/year: 2.2 Litters/sow/year: 2.2 Born alive per litter: 11Born alive per litter: 11Herd Herd livewtlivewt feed conversion efficiency:3feed conversion efficiency:3Growth rate:600g/dGrowth rate:600g/dDeaths (10% piglets, 2% weaners, 1% Deaths (10% piglets, 2% weaners, 1% growers)growers)

Physical performancePhysical performance--actualsactuals

Parameter Mean Range TargetFarrowing rate 80 61-90 >80% Total Born 11 10-13 >11.5 PBA 10 9.5-11.5 >10.5 Stillborn % 8 4.3-

11.6 <8%

Pigs weaned/litter

9 7.4-10.3 >9.5

Preweaning mortality%

13 6.2-31 <1.5

Pigs weaned /sow/yr

18.4 15-23.9 >20

Breeding herd

Physical performancePhysical performance

Breeding herd

Parameter Mean RangeWeaning age 21 14- 29 Litters per sow 2.14 1.8- 2.43 Weaning 1st Service 8 5- 10.2 Sow death rate % 9.6 1.5 -18 Culling rate % 62 26 - 88

Physical performance

Growing herd

Parameter Mean RangeWeaning age (d) 21 14- 29Growth rate (g/d) 590 454-713Mortality rate (%) 2.8 0.4-7.8Feed efficiency (kgfeed/kg LW gain)

2.44 2.05-2.84

Age at sale 163Weight at sale(LW)

94.6 47.5-119.2

Parameter Australian AVG European AVG

Sold/Sow/Year 17.4 22 Carcase Live Weight (KG) 96 110

Carcase Dressed (KG) 73 82.5 Days to market (days) 161 154 AVG daily gain (gm/day) 600 714

Feed usage (KG) 306 297 Herd feed conversion rate 4.17 3.6

Cost/Tonne ($) 254 254 Cost of production/kg 2.06 1.62 Sale price/kg ($) 2.40 2.4 Profit/sow ($) 400 1408 Return/sow place 10% 35%

2 minute quiz2 minute quiz

What are 3 major factors likely to What are 3 major factors likely to impact on the price a pig farmer impact on the price a pig farmer

receives for pig meat? receives for pig meat?

Housing typesHousing types

IndoorsIndoorsImproved feed efficiencyImproved feed efficiencyReduced labour costsReduced labour costs

OutdoorsOutdoorsLower capital costsLower capital costsMore welfareMore welfare--friendlyfriendly

InIn--between between bedded systems / bedded systems / ecosheltersecoshelters

Buildings:

Straw based “ecoshelter”

Conventional shed

Capital cost high

Operating cost low

Capital cost low

Operating cost high

Intensive farmingIntensive farming

Bedded systemsBedded systemsEspecially for progenyEspecially for progeny

Estimates 30% in AustraliaEstimates 30% in AustraliaSome breeding herdsSome breeding herds

Chiefly in response to welfareChiefly in response to welfare

Bedded systems (cont.)Bedded systems (cont.)

Cost one half/third of traditional shedsCost one half/third of traditional shedsNo internal penningNo internal penning

More welfareMore welfare--friendlyfriendlyHelps in the transition to multiHelps in the transition to multi--site, AIAO, site, AIAO, SplitSplit--sex feeding, phase feedingsex feeding, phase feedingOnOn--going costs higher (bedding + labour)going costs higher (bedding + labour)Higher intakes and 1Higher intakes and 1--2mm fatter2mm fatter

Systems of raising pigsSystems of raising pigs

Family farmsFamily farmsCorporationsCorporations

eg QAF!eg QAF!ContractingContracting

ContractingContracting

Shares production & financial risksShares production & financial risksContractor provides land, sheds, labourContractor provides land, sheds, labourCompany provides pigs, feed, transport, Company provides pigs, feed, transport, medication, technical advice, assists in medication, technical advice, assists in permits etcpermits etcAllows for expansion with minimal capitalAllows for expansion with minimal capitalStable income for farmer (returns are not Stable income for farmer (returns are not marketmarket--driven)driven)

Two minute quiz.Two minute quiz.

What 3 areas would you look at if volume What 3 areas would you look at if volume (kg pig meat sold/m(kg pig meat sold/m22 floor space) were floor space) were

limiting?limiting?

What you should have learnt in What you should have learnt in this lecturethis lecture

The role that vets play in the pig industryThe role that vets play in the pig industryThe structure of the Aussie pig industryThe structure of the Aussie pig industryOverseas markets & how they impact usOverseas markets & how they impact usHow production efficiency and volume are How production efficiency and volume are measured in pig herds and what impacts on measured in pig herds and what impacts on thesetheseWhat it costs to produce pig meat & what What it costs to produce pig meat & what contributes to this costcontributes to this costDifferent methods of housing pigs and how Different methods of housing pigs and how they performthey perform