Marketing Strategies Dr Mike Brumm – Brumm Swine

Consultancy Inc.◦ Introduction to space and marketing

Dr Josh Flohr – Nutriquest◦ Estimating the impact of floor space allowance

on late finishing pig performance

Dr Kyle Coble, New Fashion Pork◦ How we implement marketing

Marketing Strategies

Marketing decision involves cost of space, incremental cost of gain, payment grid and transportation load size

Cost of Space New Nurseries - $200+/space◦ 3.25 sqft outside dimensions

Wean-fin - $325 ($225-230 ++++)◦ 7.5-7.8 sqft/pig outside dimensions (51 x 192 =

1250 pigs)

Contract fees ($/space/yr)◦ Nursery - $32 but now up to $36◦ Grow-fin - $36 but have heard of $40◦ Wean-Fin - $40-42 and some $44

Space Management Shows up in Slaughter Data (i.e. sales decisions)

2014 2015 2015

Carcass wt vs Monday wt, lbPacker owned vs

Producer soldMonday 4.9Tuesday 0.09 0.09 5.0Wednesday 1.05 0.70 5.2Thursday 1.41 1.31 4.6Friday 2.38 1.99 5.0

LM_HG201National Daily Direct Hog Prior Day Report

More Pigs and Bigger Pigs

USDA Agricultural Statistics Annual

y = 1030.6x + 69763R² = 0.8943

y = 1.2988x + 157.97R² = 0.9847

150

160

170

180

190

200

210

220

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

000

hd

Federally Inspected Barrow & Gilt Slaughter

No. Hd Carcass Wt Linear (No. Hd) Linear (Carcass Wt)

100

95.3

72.6

77.1

90.7

86.2

81.6

KgLbCarcass wt

250

255

260

265

270

275

280

285

290

1 5 9 13 17 21 25 29 33 37 41 45 49 53Wk of Year

Iowa/SMinn Live Weight at Slaughter

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Jun 1 Sept 1NW_LS720

WtKg Lb

131.5

129.3

127.0

124.7

122.5

120.2

117.9

115.7

Expressing space as a function of Bodyweight

Allometric equation for floor space allowance

Area = k * BW2/3

k = Area / BW2/3

Courtesy Dr. Harold Gonyou, Prairie Swine Centre

84%

88%

92%

96%

100%

104%

0.020 0.022 0.024 0.026 0.028 0.030 0.032 0.034 0.036 0.038 0.040 0.042 0.044 0.046 0.048 0.050

AD

G %

of C

ontr

ol

'k'

ADG Response to 'k' full slats constant group size - metric

0.03360.0340

Gonyou et al, 2006

0.0336

Gonyou et al 2006

0.0358

Gonyou et al 2006

Critical Space (full slats) at ‘k’=

kg m2/pig lb ft2/pig

100 0.725 220 7.83

109.1 0.768 240 8.29

120.5 0.821 265 8.89

127 0.860 280 9.28

134 0.892 295 9.61

0.21450.0336

123 kg, 0.58 m2

k = 0.024

270 lb, 6.3 ft2

k = 0.153

270 lb, 8.0 ft2

k = 0.030

123 kg, 0.74 m2

k = 0.191

102 kg 0.76 m2/pig 225 lb 8.2 ft2/pig

k = 0.035 k = 0.223

For each 3% change in space, daily gain and daily feed intake change

1.0%for full slats.

There is no predictable impact of space allocation on feed/gain.

Impact of Space on ADGFull slats

WtLb (kg)

Adequateft2 (m2)

@ 7.2 ft2 (0.67 m2)Reduction in ADG

50 (22.7) 2.9 (0.27)

225 (102.3) 8.0 (0.74) 3.3%250 (113.6) 8.5 (0.79) 5.0%275 (125.0) 9.2 (0.85) 7.2%300 (136.4) 9.7 (0.90) 8.6%

Next Speakers

Can we manipulate the response to space by using alternate marketing strategies?

How one system makes its marketing decisions (what pigs on what loads).