changes in management for pork contracts
DESCRIPTION
Changes in Management for Pork Contracts. Tim Safranski State Swine Breeding Specialist (573) 884-7994. Contracting. Reduce fluctuation in cash flow Decrease risk (i.e. shared) Share costs Have a guaranteed market Access to $$$. Contractor or Contractee?. Predictable cash flow. - PowerPoint PPT PresentationTRANSCRIPT
Changes in Management for Pork Contracts
Tim Safranski
State Swine Breeding Specialist(573) 884-7994
Contracting
• Reduce fluctuation in cash flow
• Decrease risk (i.e. shared)
• Share costs
• Have a guaranteed market
• Access to $$$
Contractor or Contractee?
To contract, or not to contract….• Predictable cash flow • Predictable cash flow
To Contract, or not to contract….• Predictable cash flow• Forces record keeping
• Predictable cash flow• Forces record keeping
To Contract, or not to contract….• Predictable cash flow• Forces record keeping• Production plan and
outside assistance
• Predictable cash flow• Forces record keeping• Production plan and
outside assistance
To Contract, or not to contract….• Predictable cash flow• Forces record keeping• Production plan and
outside assistance• Strict biosecurity
• Predictable cash flow• Forces record keeping• Production plan and
outside assistance • Strict biosecurity
To Contract, or not to contract….• Predictable cash flow• Forces record keeping• Production plan and
outside assistance• Strict biosecurity• Facilities meet
minimum standard
• Predictable cash flow• Forces record keeping• Production plan and
outside assistance• Strict biosecurity• Facilities meet
minimum standard
To Contract, or not to contract….• Predictable cash flow• Forces record keeping• Production plan and
outside assistance• Strict biosecurity• Facilities meet
minimum standard• Waste control is legal
• Predictable cash flow• Forces record keeping• Production plan and
outside assistance Strict biosecurity
• Facilities meet minimum standard
• Waste control is legal
To Contract, or not to contract….• Predictable cash flow• Forces record keeping• Production plan and
outside assistance• Strict biosecurity• Facilities meet minimum
standard• Waste control is legal• Consistent genetic source
• Predictable cash flow• Forces record keeping• Production plan and
outside assistance• Strict biosecurity• Facilities meet minimum
standard• Waste control is legal• Consistent genetic source
Other Considerations
• Finisher– mixed sex– feed supplied, how to sell corn?– incentives
• Farrow– replacement rate/culling decisions– breeding system (P = G + E + GxE)– incentives
Litter Size Weaned
Ovu. Fert. Birth Alive Wean
1817
11.510.7
9.6
0
2
4
6
8
10
12
14
16
18
Ovu. Fert. Birth Alive Wean
# of potential pigs
Other Considerations Continued• Reliability of other party
– company– another farmer
• Personalities• Specialization of labor• Long-term asset, short-term contract?• IPPA Swine Contract Approaches
– (section 5 in notebook)
• NPPC Guide to contracting
Thoughts for Extension Personnel
• Who are we working for?
• What is our role?
• Are costs of production known?
• Are goals known?
Standard Normal Distribution
-3 -2 -1 0 1 2 3
Standard Deviations From Mean
freq
uen
cy