PORK PRODUCTION COSTS – FARROW TO FINISH PRODUCTION – January, 2000
Allan Schinckel
Department of Animal Sciences
Following is a list of items which must be considered by producers when calculating the total cost of producing pork. You may be familiar with costs from production units that will differ somewhat from these. Overall however, if you examine these costs carefully and study them until you fully understand them, you will possess insight into a very important aspect of pork production.
| Item | Cost for each 250 lb. pig | Cost/Cwt. |
|---|---|---|
|
1) Feed for sows during breeding and gestation 125 days @ 4.8 lb. per day = 600 lb. @ $0.06/lb. = $36.00. Assuming 10 pigs farrowed alive but only 8.7 are marketed. $36.00 ÷ 8.7 = $4.14 |
$4.14 | $1.65 |
|
2) Feed for sow during lactation 21 days @ 14 lb. per day = 294 lb. 294 lb. @ $0.0625/lb. = $18.38. Assuming 8.7 are marketed. $18.38 ÷ 8.7 = $2.11. |
$2.11 | $0.84 |
|
3) Starter ration for pig from 21-56 days. 35 days @ 1.37 lb. per day = 48.0 lb. @ $0.13/lb. = $6.24. |
$6.24 | $2.50 |
|
4) Growing-finishing ration From 48 to 250 lb. = 202 lb. gain. Feed to gain ratio = 3.4 to 1. 202 lb. @ 3.4 lb. = 687 lb. 687 lb. feed x $0.052/lb. = $35.74. |
$35.74 | $14.29 |
| 5) Total feed cost | $48.21 | $19.28 |
| 6) Building and equipment cost per pig produced. Annual use or ownership cost is determined as follows: Initial cost x 20% = Annual use cost. Annual use cost includes: depreciation, interest, taxes, insurance and repair. | ||
|
a) Farrowing facility. Initial cost is $2,400 per sow capacity. The annual use cost is $2,400 x 20% or $480 per year. If we assume 12 farrowings and average 10 pigs per litter, 120 pigs are farrowed in each crate per year. Of those farrowed alive 8.7 are marketed, thus 8.5 x 12 = 102 pigs. $480 ÷ 102 = $4.71/pig. |
$4.71 | $1.88 |
|
b) Nursery facility. Initial cost is $120.00 per pig capacity. The annual use cost is $120 x 20% or $24.00 per year. If we assume 9 usages per year, the cost per pig is $24.00 ÷ 9 = $2.67/pig. |
$2.67 | $1.07 |
|
c) Growing-finishing facility. Initial cost is $160 per pig capacity. The annual use cost is $160 x 20% or $32 per year per space. If we assume the pig will occupy this facility for 130 days, we can get 2.8 usages per year from each space. $32 ÷ 2.8 = $11.43 |
$11.43 | $4.57 |
|
d) Gestation housing. Initial cost is $350 per sow capacity. The annual use cost is $350 x 20% or $70 per year. If we assume each sow will farrow 2.2 litters of 10 pigs each and 8.7 pigs are marketed per litter, the cost would be $70 ÷ 18.7 pigs = $3.74/pig. |
$3.74 | $1.50 |
| 7) Veterinary expense (includes vaccines, therapeutic levels of antibiotics, not additives) | $2.00 | $0.80 |
| 8) Marketing charges (includes commission, yardage and transportation) | $1.70 | $0.68 |
| 9) Utilities, fuel, electricity and telephone | $3.20 | $1.28 |
|
10) Labor (.7 of an hour of labor is used for each 100 lb. of pork produced. Includes labor used for breeding herd and all stages of the life cycle up to 250# @ $9.00 per hour.) 0.7 hr. x 2.5 cwt. x $9.00 = $15.75. |
$15.75 | $6.30 |
| 11) Misc. (supplies , interest and taxes on breeding herd, boar purchases) | $2.85 | $1.14 |
| 12) Total non-feed costs (Items 6, 7, 8, 9, 10 and 11) | $48.05 | $19.22 |
| 13) Cost of producing 250 lb. of pork (Item 5 plus Item 12) |
$96.26 |
$38.50 |
| 14) Current market value of 250 lb. of pork (market price) | $87.50 | $35.00 |
| 15) Net profit or loss | -$8.76 | -$3.50 |
PORK PRODUCTION COSTS – PRODUCING FEEDER PIGS – January, 2000
Allan Schinckel
Department of Animal Sciences
| Item | Cost for each 50 lb. pig | Cost/Cwt. |
|---|---|---|
|
1) Feed for sow during breeding and gestation 125 days @ 4.8 lbs. per day = 600 lb. @ $0.065/lb. = $36.00. Assuming 10 pigs farrowed alive but only 8.8 were marketed. $36.00 ÷ 8.8 = $4.09. |
$4.43 | $8.86 |
|
2) Feed for sow during lactation 21 days @ 14 lb. per day = 294 lb. @ $0.0625/lb. = $18.36 ÷ 8.8 pigs = $2.09. |
$2.09 | $4.17 |
|
3) Starter-grower ration for pig from 21-56 days. 35 days @ 1.37 lb. per day = 48.16 lbs. @ $0.13/lb. = $6.24. |
$7.16 | $14.32 |
| 4) Building and equipment cost per pig produced. Annual use or ownership cost is determined as follows: Initial cost x 20% = Annual use cost. Annual use cost includes: depreciation, interest, taxes, insurance and repair ("Dirti 5"). | ||
|
a) Farrowing facility. Initial cost is $2,400 per sow capacity. The annual use cost is $2,400 x 20% or $440 per year. If we assume 15 farrowings and average 10 pigs per litter, 150 pigs are farrowed in each crate per year. Of those farrowed alive 8.8 marketed. 8.8 x 15 = 132 pigs. $480 ÷ 132= $3.64. |
$3.64 | $7.28 |
|
b) Nursery facility. Initial cost is $110.00 per pig capacity. The annual use cost is $110.00 x 20% or $22.00 per year. If we assume 8.8 usages per year, the cost per pig is $22.00 ÷ 8.8. |
$2.50 | $5.00 |
|
c) Gestation housing. Initial cost is $350 per sow capacity. The annual use cost is $350 x 20% or $70 per year. If we assume each sow will farrow 2.2 litters of 10 pigs each and 8.8 are marketed per litter, the cost per pig is $70 ÷ 19.4 = $3.61/pig. |
$3.61 | $7.22 |
| 5) Veterinary expense | $2.10 | $4.20 |
| 6) Marketing charge | $0.60 | $1.20 |
| 7) Utilities, fuel, electricity, telephone | $1.50 | $3.00 |
|
8) Labor 9.0 hours per litter from farrowing to weaning @ $9.00/hr. 10 pigs farrowed and 8.7 marketed. $81 ÷ 8.8 pigs |
$9.20 | $18.40 |
| 9) Supplies, interest and taxes on herd and feed | $2.40 | $4.80 |
| 10) Total cost of producing 50 lb. feeder pig | $37.97 | $75.93 |
| 11) Current market value of 50 lb. feeder pig @ $0.60/lb. | $28.00 | $58.00 |
| 12) Net profit or loss | -$9.97 | -$19.93 |
PORK PRODUCTION COSTS – FEEDER PIG FINISHING – January, 2000
Allan Schinckel
Department of Animal Sciences
| Item | Cost for each 250 lb. pig | Cost/Cwt. |
|---|---|---|
|
1) Purchase price (50 lb. @ $0.60/lb.) |
$28.00 | $11.20* |
|
2) Feed cost. Growing-finishing ration from 50 lb. to 250 lb. = 200 lb. gain. Feed to gain ratio = 3.4 to 1. 200 lb. x 3.4 = 680 lbs. of feed @ $0.052/lb. |
$35.36 | $17.68 |
|
3) Growing-finishing facility. Initial cost is $160 per pig capacity. The annual use cost is $160 x 20% or $32 per year per space. If we assume the pig will occupy this facility for 114 days, we can get 3 usages per year from each space. $32 ÷ 3 = $10.66/pig. |
$10.66 | $5.33 |
| 4) Veterinary expense (includes vaccines, therapeutic levels of antibiotics) | $1.60 | $0.80 |
| 5) Marketing charge, transportation, yardage and commission | $1.50 | $0.75 |
| 6) Utilities, fuel, electricity and telephone | $1.65 | $0.83 |
|
7) Labor. 0.35 of an hour of labor is used for each 100 lb. of pork produced @ $9.00/hour (0.35 x 2.00 x $9.00= $6.30). |
$6.30 | $3.15 |
| 8) Interest charges, supplies, misc. | $3.90 | $1.95 |
| 9) Total cost of producing 200 lb. of pork | $60.97 | $30.49 |
| 10) Total cost of producing 200 lb. of pork plus purchase price = cost of the pig price = cost of the pig | $88.97 |
$35.59 * |
| 11) Current market value of 250 lb. of pork | $90.00 | $36.00 |
| 12) Profit or loss based on process the week of August 9, 1998. | +$1.03 | +$0.41 |
* Per 250 lb of pig sold, all other cost/cwt are cwt per 200 cwt.
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