WELCOME TO PIGS!!!

PIG PRODUCTION

What you should learn in this section:• The role that vets play in the pig industry• The structure of the Aussie pig industry• Overseas markets & how they impact us• How production efficiency and volume aremeasured in pig herds and what impacts onthese• What it costs to produce pig meat & whatcontributes to this cost• Different methods of housing pigs and howthey perform

The role that vets play in the pig industry• Fire engine calls & S4s• Specialist consultants• Regulatory-AQUIS, BA• Pharmaceutical companies• Industry-APL, Welfare, AAPV• Research- pig & human• Public health

What does the vet do on the pig farm?Herd profitabilityVolume(Kg meat)Cost of production(c/kg)Growing herdefficiencyBreeding herdefficiencyhealth nutrition management genetics environment

Role of the consultant vet• Monitor performance & productivity• conduct regular farm visits (monthly-6-monthly)monthly)• Know how things should be (targets)• Know how things are• Compare performance to targets• Manipulates the relationship between potentialpathogens and farm / herd environment /management /genetics /welfare / immunity / nutrition/ reproduction to get the best possible result

How do you monitor herd health?• Farm visits• Analyse records• Clinical observation• Assess environment & management• Necropsies• Inspections during processing

What is the end result? A herd healthplan• Medication• Management• Environment• Biosecurity

The structure of the Aussie pig industry• 26 th in the world• 364Kt CWt vs China 41,600Kt• Average slaughter weight increasing• 55kg in 1980 … 74kg in 2001• Import mainly from Canada and Denmark• Export to Japan, Singapore and NZ• We eat 18.8kg pig meat per head• Ranked 23 rd in the world• Vs 77kg in Denmark

Per capita consumption of pork-selected countriescalenderyear 2000 (from PigStats, 2002)

The Aussie Pig IndustryPercentage of sows by state15%12% 1%22%28%22%NSWQldVicSAWATas

The Aussie pig industry• Number of pig producers is decreasing49,537 in ’60……2,914 in ’01

Average herd size is increasingAverage herd size1401201008060402001970197319761979Year1982198519881991199419972000Average herd size is increasing(’79=16 sows…’99=101 sows)

Fate of Pig meat in Australia10/10/04Pig meat consumed in Australia.Includes imported pork which makes up 60% of processedporkFresh porkProcessed pork(40%) (60%)Butchers Supermarkets(22%) (60%)Other fresh (18%)Ham Bacon OtherPork(60%) (35%) (40%) (25%)

Overseas markets & how theyimpact us

Recent challenges for the Australianindustry• Low prices• High Aussie dollar hindering exports• Price competition from imports• 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:

• Domestic salesPerfect Match?•

2 minute quiz• How would you assess the health statusof a herd during a farm visit?

How production efficiency and volumeare measured in pig herds and whatimpacts on these

The production system• Breeding - about 1 week• Natural +/- AI• Gestation - about 16 weeks• crates, pens• Farrowing - 2-55 weeks• Weaner - 2-10wks• Grower/finisher - 10-25wks

Keys to success:Contain costsMeet mating targetsFill shedsSell at heavy weightsUse feed efficiently (no wastage)Optimise health and genetics

Costs of ProductionAverage ($/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/pigRange: $1.30 > $2.00/kglwt

20012002Components of cost of production80706050403020100Health%Herd%Shed%Feed%Labour%Overhead%%

Fixed cost of productionAverage ($/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 structure%Animal health 4Power and Gas 1.9Feed 56Labour 15Overheads 18

What determines prices?• Seasonal• Imports• Export demand (25% pork exported)Profit is driven by the cost of feed

Breeding herdGrowing herdPigs weaned persow per yearKg meat sold/m 2floor spacePigsweaned/litterLitters/sow/yrNo. pigs/m 2floor spaceKg/pigPhysical herd performance

Physical performance-efficiency efficiency targets:• Litters/sow/year: 2.2• Born alive per litter: 11• Herd livewt feed conversion efficiency:3• Growth rate:600g/d• Deaths (10% piglets, 2% weaners, 1%growers)

Physical performance-actualsactualsBreeding herdParameter Mean Range TargetFarrowing rate 80 61-90 >80%Total Born 11 10-13 >11.5PBA 10 9.5-11.5 >10.5Stillborn % 8 4.3-11.69.5weaned/litterPreweaning 13 6.2-31 20

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

Physical performanceGrowing herdParameter Mean RangeWeaning age (d) 21 14- 29Growth rate (g/d) 590 454-713Mortality rate (%) 2.8 0.4-7.8Feed efficiency (kg 2.44 2.05-2.84feed/kg LW gain)Age at sale 163Weight at sale(LW)94.6 47.5-119.2

Parameter Australian AVG European AVGSold/Sow/Year 17.4 22Carcase Live Weight(KG)96 110Carcase Dressed (KG) 73 82.5Days to market (days) 161 154AVG daily gain(gm/day)600 714Feed usage (KG) 306 297Herd feed conversionrate4.17 3.6Cost/Tonne ($) 254 254Cost of production/kg 2.06 1.62Sale price/kg ($) 2.40 2.4Profit/sow ($) 400 1408Return/sow place 10% 35%

2 minute quiz• What are 3 major factors likely toimpact on the price a pig farmerreceives for pig meat?

Housing types• Indoors• Improved feed efficiency• Reduced labour costs• Outdoors• Lower capital costs• More welfare-friendlyfriendly• In-between• bedded systems / ecoshelters

Buildings:ConventionalshedStraw based“ecoshelter”Capital cost highOperating costlowCapital cost lowOperating cost high

Intensive farming

Bedded systems• Especially for progeny• Estimates 30% in Australia• Some breeding herds• Chiefly in response to welfare

Bedded systems (cont.)• Cost one half/third of traditional sheds• No internal penning• More welfare-friendlyfriendly• Helps in the transition to multi-site, AIAO,Split-sex feeding, phase feeding• On-going costs higher (bedding + labour)• Higher intakes and 1-2mm 1fatter

Systems of raising pigs• Family farms• Corporations• eg QAF!• Contracting

Contracting• Shares production & financial risks• Contractor provides land, sheds, labour• Company provides pigs, feed, transport,medication, technical advice, assists inpermits etc• Allows for expansion with minimal capital• Stable income for farmer (returns are notmarket-driven)

Two minute quiz.What 3 areas would you look at if volume(kg pig meat sold/m 2 floor space) werelimiting?

What you should have learnt inthis lecture• The role that vets play in the pig industry• The structure of the Aussie pig industry• Overseas markets & how they impact us• How production efficiency and volume aremeasured in pig herds and what impacts onthese• What it costs to produce pig meat & whatcontributes to this cost• Different methods of housing pigs and howthey perform