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Changes in Management for Pork Contracts

Changes in Management for Pork Contracts. Tim Safranski State Swine Breeding Specialist (573) 884-7994. Contracting. Reduce fluctuation in cash flow Decrease risk (i.e. shared) Share costs Have a guaranteed market Access to $$$. Contractor or Contractee?. Predictable cash flow.

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Changes in Management for Pork Contracts

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  1. Changes in Management for Pork Contracts Tim Safranski State Swine Breeding Specialist (573) 884-7994

  2. Contracting • Reduce fluctuation in cash flow • Decrease risk (i.e. shared) • Share costs • Have a guaranteed market • Access to $$$

  3. Contractor or Contractee?

  4. Predictable cash flow Predictable cash flow To contract, or not to contract….

  5. To Contract, or not to contract…. • Predictable cash flow • Forces record keeping • Predictable cash flow • Forces record keeping

  6. To Contract, or not to contract…. • Predictable cash flow • Forces record keeping • Production plan and outside assistance • Predictable cash flow • Forces record keeping • Production plan and outside assistance

  7. To Contract, or not to contract…. • Predictable cash flow • Forces record keeping • Production plan and outside assistance • Strict biosecurity • Predictable cash flow • Forces record keeping • Production plan and outside assistance • Strict biosecurity

  8. To Contract, or not to contract…. • Predictable cash flow • Forces record keeping • Production plan and outside assistance • Strict biosecurity • Facilities meet minimum standard • Predictable cash flow • Forces record keeping • Production plan and outside assistance • Strict biosecurity • Facilities meet minimum standard

  9. To Contract, or not to contract…. • Predictable cash flow • Forces record keeping • Production plan and outside assistance • Strict biosecurity • Facilities meet minimum standard • Waste control is legal • Predictable cash flow • Forces record keeping • Production plan and outside assistance Strict biosecurity • Facilities meet minimum standard • Waste control is legal

  10. To Contract, or not to contract…. • Predictable cash flow • Forces record keeping • Production plan and outside assistance • Strict biosecurity • Facilities meet minimum standard • Waste control is legal • Consistent genetic source • Predictable cash flow • Forces record keeping • Production plan and outside assistance • Strict biosecurity • Facilities meet minimum standard • Waste control is legal • Consistent genetic source

  11. Other Considerations • Finisher • mixed sex • feed supplied, how to sell corn? • incentives • Farrow • replacement rate/culling decisions • breeding system (P = G + E + GxE) • incentives

  12. Litter Size Weaned

  13. Other Considerations Continued • Reliability of other party • company • another farmer • Personalities • Specialization of labor • Long-term asset, short-term contract? • IPPA Swine Contract Approaches • (section 5 in notebook) • NPPC Guide to contracting

  14. Thoughts for Extension Personnel • Who are we working for? • What is our role? • Are costs of production known? • Are goals known?

  15. Standard Normal Distribution frequency Standard Deviations From Mean

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