dr. aaron j. lower - staying proactive in a down market

Staying Proactive in a Down MarketBIVI World Pork Expo Media ConferenceAaron J. Lower, DVMalower@hogvet.comCarthage Veterinary Service, Ltd.

2

Cost of Production – Wean to FinishMetafarms - 2014

Perspective

• Health costs are a top 5 cost but only 1.7%

• Focus on• Feed cost• Wean pig cost• Facility cost

3

Key cost relationshipsDecrease cost $0.25/bushel and SBM $20/ton

– 2.2% decrease in finishing mortality– 0.17 decrease in feed efficiency

• 0.50 increase P/S/Y = 1% decrease in finishing livability• 1% improvement in finishing livability = 0.05 FCR

Dealing With The High Cost of Feed In Commercial Pig Production - Dr. Steve Pollman, Murphy Brown, from the 2012 Boehringer Ingelheim Mile High Swine Health Seminar, March 6, 2012, Denver CO, USA.

4

Key Cost Relationships

• Key controllable areas– Wean pig flow

• Health, Age, Throughput

– Monitor key inputs proactively• Pre-fill inspection• Standard visit• Weekly mortality and closeouts

– Feed processing• Particle size, Pellet quality

– Feeding program implementation – feeders, budget, interruptions

– Health – diagnostics and mortalityDr. Steve Pollman, March 6, 2012, Denver CO, USA.

Focus on:1. Livability2. Growth Rate3. Number Weaned

5

Grow-FinishEconomic Impact of PRRS

Pigs placed April 2011 through April 2012

Data Neg Pos DifferenceAverage of DL 2.14% 5.47% 3.33% 1.33$ % DL ($120/pig value) 4.42$

Average of Culls 2.66% 4.83% 2.17% 0.56$ % Cull (70% of FVP - $185) 1.21$ Average of ADG 1.92 1.80 -0.12 0.11$ per day 1.01$ Average of F/G 2.58 2.70 0.12 0.14$ per lb 4.37$

11.01$

Total Head 143,375 48,325 532,218$

PRRS Value

6

Grow-FinishPRRS – Managing Variation

Unpredictable spikes in mortality due to PRRS

7

Grow-FinishPRRS – Managing Variation

Unpredictable spikes in mortality due to PRRS

Can you partial dose?

• It Depends!!– Risk tolerance– Relatively low cost – ROI?– Co-infections– Potential for variation– Loss of company support

8

9

“White Glove” InspectionSite:____________________ Date:____________________ Inspector:______________________________

Office Yes No Equipment Yes NoShower Room Clean Pulse Vests CleanClothes Clean, Folded, & Organized Pulse Units CleanRefrigerators Clean & Organized CO2 Bottles/Air Compressors CleanOffi ce Floor Clean Bolt Guns/Euthanasia Boxes CleanOffi ce Area Clean & Organized Medicine Bottles/Coolers CleanAux. Storage Areas Clean & Organized Site Tools CleanPortable Restrooms Swept/Disinfected Sort Boards Clean

Marker Spray Cans CleanBarns (Evaluate at least 1) Yes No Old Marking Chalk Disposed OfSlats Clean (Side of Slat) Load Out Boards CleanCracks Clean Snares & Dead Carts CleanFeeders Clean, Water Out Shaker Cans CleanWater/Feed Lines/Feed Tubes Clean Boots CleanHeaters CleanLedges Clean Site Yes NoPenning, Gates, & Feet Clean Boot Rack Area CleanControllers Wiped Clean Stoops/Chutes Clean

Outside Trash Disposed OFFeed Pads CleanPickups CleanDead Equipment CleanGenerator/Storage Shed(s) Clean

Comments:

Maintenance Issues:

Nursery/Finisher Site Cleanup Inspection List

10

Facility cost

• $19.05/pig – 10.9% of total cost

– Throughput – sow farm flow, purchase pigs– Double stock– Barn downtime– Fill time– Marketing time

11

Marketing

12

Proactively Managing a Downturn

Focus on:

1. Livabilitya) Vaccinationb) Diagnostics

2. Growth Ratea) Feeders, particle size,

interruptions

3. Number Weaneda) Maximize sow farm

efficienciesb) Wean agec) Throughput of finisher barns

– space cost

Focus on top 3 costs:

1. Feed cost2. Wean pig cost3. Facility cost

Carthage Veterinary Service, Ltd