dr. mike brumm - introduction to production marketing
TRANSCRIPT
Marketing Strategies Dr Mike Brumm – Brumm Swine
Consultancy Inc.◦ Introduction to space and marketing
Dr Josh Flohr – Nutriquest◦ Estimating the impact of floor space allowance
on late finishing pig performance
Dr Kyle Coble, New Fashion Pork◦ How we implement marketing
Marketing Strategies
Marketing decision involves cost of space, incremental cost of gain, payment grid and transportation load size
Cost of Space New Nurseries - $200+/space◦ 3.25 sqft outside dimensions
Wean-fin - $325 ($225-230 ++++)◦ 7.5-7.8 sqft/pig outside dimensions (51 x 192 =
1250 pigs)
Contract fees ($/space/yr)◦ Nursery - $32 but now up to $36◦ Grow-fin - $36 but have heard of $40◦ Wean-Fin - $40-42 and some $44
Space Management Shows up in Slaughter Data (i.e. sales decisions)
2014 2015 2015
Carcass wt vs Monday wt, lbPacker owned vs
Producer soldMonday 4.9Tuesday 0.09 0.09 5.0Wednesday 1.05 0.70 5.2Thursday 1.41 1.31 4.6Friday 2.38 1.99 5.0
LM_HG201National Daily Direct Hog Prior Day Report
More Pigs and Bigger Pigs
USDA Agricultural Statistics Annual
y = 1030.6x + 69763R² = 0.8943
y = 1.2988x + 157.97R² = 0.9847
150
160
170
180
190
200
210
220
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
000
hd
Federally Inspected Barrow & Gilt Slaughter
No. Hd Carcass Wt Linear (No. Hd) Linear (Carcass Wt)
100
95.3
72.6
77.1
90.7
86.2
81.6
KgLbCarcass wt
250
255
260
265
270
275
280
285
290
1 5 9 13 17 21 25 29 33 37 41 45 49 53Wk of Year
Iowa/SMinn Live Weight at Slaughter
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Jun 1 Sept 1NW_LS720
WtKg Lb
131.5
129.3
127.0
124.7
122.5
120.2
117.9
115.7
Expressing space as a function of Bodyweight
Allometric equation for floor space allowance
Area = k * BW2/3
k = Area / BW2/3
Courtesy Dr. Harold Gonyou, Prairie Swine Centre
84%
88%
92%
96%
100%
104%
0.020 0.022 0.024 0.026 0.028 0.030 0.032 0.034 0.036 0.038 0.040 0.042 0.044 0.046 0.048 0.050
AD
G %
of C
ontr
ol
'k'
ADG Response to 'k' full slats constant group size - metric
0.03360.0340
Gonyou et al, 2006
Critical Space (full slats) at ‘k’=
kg m2/pig lb ft2/pig
100 0.725 220 7.83
109.1 0.768 240 8.29
120.5 0.821 265 8.89
127 0.860 280 9.28
134 0.892 295 9.61
0.21450.0336
For each 3% change in space, daily gain and daily feed intake change
1.0%for full slats.
There is no predictable impact of space allocation on feed/gain.
Impact of Space on ADGFull slats
WtLb (kg)
Adequateft2 (m2)
@ 7.2 ft2 (0.67 m2)Reduction in ADG
50 (22.7) 2.9 (0.27)
225 (102.3) 8.0 (0.74) 3.3%250 (113.6) 8.5 (0.79) 5.0%275 (125.0) 9.2 (0.85) 7.2%300 (136.4) 9.7 (0.90) 8.6%