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CRC Perspectives on constraints, opportunities and priorities Colin Kay Pork Producer, Director NZPIB November 2005. Key issues. Sustainability Profitability. Sustainability. Manure disposal – treat as a resource Odour reduction Country health status Animal welfare – group housing

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Presentation Transcript
slide1

CRC Perspectives on constraints,

opportunities and priorities

Colin Kay

Pork Producer, Director NZPIB

November 2005

key issues
Key issues
  • Sustainability
  • Profitability
sustainability
Sustainability
  • Manure disposal – treat as a resource
  • Odour reduction
  • Country health status
  • Animal welfare – group housing
  • Marketing/promotion
  • Pork quality – boar taint
  • Pork industry image
  • Unfair trading - dumping
  • Obtain, train, retain good staff
profitability
Profitability
  • Operating profit (EBIT)

EBIT = Gross income – variable costs – fixed costs

  • Cost of production

All research should result in increase in profit or reduction in COP

cop relationships
COP relationships
  • Price of feed vs. FCR

-Use low value by-product – lower feed costs but higher FCR

-Lower costs but reduce kg sold

COP Feed = cost/kg feed x FCR

cop relationships1
COP relationships

Skilled Staff

  • Mating area - ↑ total pigs born & ↑ No. litters
  • Farrowing area -↓still born & pre-weaning mortality
  • Will increase no pigs weaned/sow/yr
  • Daily feeder adjustment - ↑ intake, ↑ growth rate & ↓wastage - Aim to ↓ FCR
cop relationships2
COP relationships

Breeding stock

  • Improved carcass traits - killing out %, backfat and lean yield
  • Increase total pigs born/litter
  • ADFI + ADG + FCR
effect of scale of production
Effect of scale of production
  • Compare two herd sizes
    • 250 sow herd
    • 500 sow herd
  • Marketing 22.17 pigs/sow/year
  • Carcass deadweight 67kg average
slide11
COP

Double sow herd to 500

  • Double variable costs 84% → 92%
  • Fixed costs same 16% → 8%
  • COP $2.77 → $2.48
  • Increase pigs sold/sow/yr 22.17 → 24
  • Increase carcass wgt 67kg → 72kg
  • COP $2.48 → $2.40
profit
Profit

($/kg – ((cost/kg feed x FRC) + variable costs/kg+ fixed costs/kg))) x volume kg

constraints
Constraints
  • Scale
  • Environmental
  • Cost of cereal grains
  • Labour
opportunities
Opportunities
  • ↑ Utilisation of feed - ↑ intake ↓ wastage
  • ↑ Digestibility of feed ingredients
  • By product feeds
  • ↓ Reproductive wastage
  • Group housing management
  • Outdoor production
  • ↑ Carcass weights
  • Staff training and recruitment
priorities
Priorities
  • ↓ Feed costs/kg carcass

(COP Feed = cost/kg feed x FCR)

  • ↑ Digestibility + utilisation of feed
  • ↑ Reproductive productivity
  • Meat quality-boar taint-tenderness
  • Technology transfer
  • Staff training and recruitment
  • Outdoor production systems