24/11/2021
Sale of feeder pigs to finishing pig producers
Livestock auctions
Graded feeder pig sales
Slaughter hog sales to packer buying stations
Direct sales to major packing plants
Small packers/processors
Specialty sales direct to consumers
Feeder Pig Marketing
All of these marketing options are available to feeder pig producers. One of the most popular options is marketing directly to producers who finish pigs. This option has advantages for both parties. First, the buyer and seller know the price and delivery conditions in advance. Second, the direct-sale option reduces animal stress and disease risk. Third, the direct-to-finisher transaction voids commissions associated with a livestock auction.
Marketing feeder pigs through a livestock auction, graded sale, or buying station is another common option. Before using these markets, you should know the desirable weights and lot sizes that garner the highest price.
Slaughter Hog Marketing
Buying stations and direct sales to a major packer are popular options for marketing slaughter hogs. In both cases, producers are quoted a price before the sale is finalized.
Small packers and processors are an additional market available to slaughter hog producers. They often pay a good price, but their plant capacity and number of customers restrict the number of hogs they buy.
An auction barn is another option for selling slaughter hogs. Producers often use this market because of its location and convenience. The disadvantage of marketing through an auction barn is that producers are at the mercy of the supply and demand for hogs at the local market on that day. Prices may be well below or well above the national price on any given day and the producer must take the highest bid price. Auction barns also charge a commission regardless of the final bid price.
Specialty markets represent another alternative for slaughter hog producers. A popular form of direct sale enables the consumer to buy directly from a producer. The consumer then contracts with a small packer for customized meat cutting and packaging.
In summary, choosing a market involves doing your homework. When comparing market alternatives, you must account for differences in price received, transportation expenses, shrink losses, selling costs, and convenience. A market 50 miles farther from the farm that offers a higher price may in fact produce less net revenue than selling locally at a lower price when all marketing costs are included. You must know your alternatives and stay current with price trends and market preferences.
Three Enterprises and Characteristics
Three types of swine production enterprises are farrow- to-finish, farrow-to-feeder, and feeder-to-finish. No single blueprint exists for these systems. Designing a production system that will complement your resources and lifestyle is the most important component to determining the best production system for you.
To determine which enterprise will work best in your situation, you must first consider the following:
Amount of capital, labor, and land available
Level of management and marketing skill needed
Social and environmental implications associated with manure management
Farrow-to-Finish
A farrow-to-finish enterprise involves breeding and farrowing sows, and feeding the offspring until they reach a market weight of about 280 pounds. The entire production period takes approximately 10 months, with 4 months for breeding and gestation and 6 months to raise the litter to market weight. Of the three systems, farrow-to-finish has the greatest long-run market potential and flexibility. This system also demands the most capital and labor, and requires a long-term commitment to the swine business. A small number of sows can fit into a crop operation nicely when farrowings are scheduled to avoid peak harvest times. With the current focus on animal welfare, most new farrow- to-finish operations are designed to hold gestating sows in pens rather than crates, which may increase the capital required for sow housing.
Farrow-to-Feeder
A farrow-to-feeder enterprise involves breeding and farrowing sows and then selling the piglets to finishing operations when they weigh 30 to 60 pounds. Compared to a farrow-to-finish operation, this option decreases the need for facilities, operating capital, and the amount of feed and manure handled. It also provides a good foundation for increasing the number of sows or expanding into a farrow-to-finish operation. The biggest drawback of this system is that producers, especially those with small herds, are at the mercy of a volatile feeder pig market. This may require farrowing sows in groups to increase the number of pigs available during periods of high demand.
Feeder-to-Finish
Most feeder-to-finish enterprises buy feeder pigs weighing 30 to 60 pounds and feed them to market weight. In many cases, existing facilities are adequate for this system. This system allows for minimum overhead, low labor requirements, and no long-term commitment. The feeder-to-finish operation offers an opportunity for a grain farmer to use homegrown feeds to finish pigs without having to manage breeding stock. The operation also may capitalize on the fertilizer value of the manure. Important points of concern are the source, health, and quality of purchased feeder pigs. Ideally, all feeder pigs should originate from a single farm to reduce potential herd health problems.
Feeding
Feed is the major expense of any swine production system. In general, a farrow-to-finish operation will spend 75 percent of its total expenses on feed, compared to 50 percent for farrow-to-feeder operations, and 65 percent for feeder- to-finish operations.
Example swine diets are presented in Table 1, but they will vary depending on your management program, feed quality, and the condition of the animals. A summary of production inputs and manure output for different types of swine enterprise is listed in
Growing your own grain, making bulk purchases of additional ingredients, and using your own grinder and mixer (or hiring the work done in some situations) are effective ways to lower feed costs. However, adequate storage for large quantities of feed ingredients is necessary.
One major consideration in planning a swine enterprise is how to get feed to the pigs. Ideally, animals in farrowing, gestation, and nursery units should be hand-fed and those in the growing-finishing units could get their feed from automatic augers.