April 2007

What Does it Cost to Raise a Pig?

Mike Yacentiuk - Swine Specialist, MAFRI

The table below has been prepared to serve as a guide when calculating total production costs. To more accurately reflect the true costs of your swine operation, values specific to that operation should be substituted for those provided. All swine production units should attempt to calculate their production costs and subsequently the breakeven price. The breakeven price can be used to assist with decisions regarding forward pricing of pigs.

Assumptions

• Pigs Weaned: 20.33/sow/year
• Feeders Sold (20 kg): 19.92/sow/year
• Finishers Sold (105 kg): 19.32/sow/year
• Commercially prepared feed
• Buildings valued at new cost

Feed accounts for the largest portion of total production costs comprising 61.9% and 43.2% of the farrow/finish and farrow/feeder units respectively. The feeder pigs at 43.9% of total cost is the largest cost in a grower/finisher barn.

COSTS	FARROW/FINISH		GROW/FINISH		FARROW/FEEDER (20 KG)
Feed Operating Feeder Pig Fixed Labour Total (Per Pig Sold)	81.50 20.59 - 17.53 11.95 $131.57	61.9 15.6 - 13.3 9.2 100%	59.34 10.81 62.87 7.09 3.00 $143.11	41.5 7.6 43.9 4.9 2.1 100%	23.07 12.28 - 10.11 8.00 $53.46	43.2 23.0 - 18.9 14.9 100%

When attempting to improve the profitability of a swine operation, attention should be focused on two main areas:

• The first and short term approach is to reduce production costs. For existing operations, this will generally entail a complete review of feed and operating costs.

• The second and long term approach to improve profitability is to increase the throughput of the operation. This is especially rewarding for sow operations.

Of course when contemplating any changes, the financial impact of those decisions will have to be weighted against the savings or expenses incurred.