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CRC Perspectives on constraints, opportunities and priorities Colin Kay

CRC Perspectives on constraints, opportunities and priorities Colin Kay Pork Producer, Director NZPIB November 2005. Key issues. Sustainability Profitability. Sustainability. Manure disposal – treat as a resource Odour reduction Country health status Animal welfare – group housing

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CRC Perspectives on constraints, opportunities and priorities Colin Kay

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  1. CRC Perspectives on constraints, opportunities and priorities Colin Kay Pork Producer, Director NZPIB November 2005

  2. Key issues • Sustainability • Profitability

  3. Sustainability • Manure disposal – treat as a resource • Odour reduction • Country health status • Animal welfare – group housing • Marketing/promotion • Pork quality – boar taint • Pork industry image • Unfair trading - dumping • Obtain, train, retain good staff

  4. Profitability • Operating profit (EBIT) EBIT = Gross income – variable costs – fixed costs • Cost of production All research should result in increase in profit or reduction in COP

  5. COP relationships • Price of feed vs. FCR -Use low value by-product – lower feed costs but higher FCR -Lower costs but reduce kg sold COP Feed = cost/kg feed x FCR

  6. COP relationships Skilled Staff • Mating area - ↑ total pigs born & ↑ No. litters • Farrowing area -↓still born & pre-weaning mortality • Will increase no pigs weaned/sow/yr • Daily feeder adjustment - ↑ intake, ↑ growth rate & ↓wastage - Aim to ↓ FCR

  7. COP relationships Breeding stock • Improved carcass traits - killing out %, backfat and lean yield • Increase total pigs born/litter • ADFI + ADG + FCR

  8. Effect of scale of production • Compare two herd sizes • 250 sow herd • 500 sow herd • Marketing 22.17 pigs/sow/year • Carcass deadweight 67kg average

  9. COP Double sow herd to 500 • Double variable costs 84% → 92% • Fixed costs same 16% → 8% • COP $2.77 → $2.48 • Increase pigs sold/sow/yr 22.17 → 24 • Increase carcass wgt 67kg → 72kg • COP $2.48 → $2.40

  10. Profit ($/kg – ((cost/kg feed x FRC) + variable costs/kg+ fixed costs/kg))) x volume kg

  11. Constraints • Scale • Environmental • Cost of cereal grains • Labour

  12. Opportunities • ↑ Utilisation of feed - ↑ intake ↓ wastage • ↑ Digestibility of feed ingredients • By product feeds • ↓ Reproductive wastage • Group housing management • Outdoor production • ↑ Carcass weights • Staff training and recruitment

  13. Priorities • ↓ Feed costs/kg carcass (COP Feed = cost/kg feed x FCR) • ↑ Digestibility + utilisation of feed • ↑ Reproductive productivity • Meat quality-boar taint-tenderness • Technology transfer • Staff training and recruitment • Outdoor production systems

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