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 $$$. Contractor or Contractee?. Predictable cash flow. - PowerPoint PPT PresentationTRANSCRIPT
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Changes in Management for Pork Contracts
Tim Safranski
State Swine Breeding Specialist(573) 884-7994
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Contracting
• Reduce fluctuation in cash flow
• Decrease risk (i.e. shared)
• Share costs
• Have a guaranteed market
• Access to $$$
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Contractor or Contractee?
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To contract, or not to contract….• Predictable cash flow • Predictable cash flow
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To Contract, or not to contract….• Predictable cash flow• Forces record keeping
• Predictable cash flow• Forces record keeping
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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
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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
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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
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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
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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
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Other Considerations
• Finisher– mixed sex– feed supplied, how to sell corn?– incentives
• Farrow– replacement rate/culling decisions– breeding system (P = G + E + GxE)– incentives
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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
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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
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Thoughts for Extension Personnel
• Who are we working for?
• What is our role?
• Are costs of production known?
• Are goals known?
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Standard Normal Distribution
-3 -2 -1 0 1 2 3
Standard Deviations From Mean
freq
uen
cy