innovative. precise. secure. 1. sow farm performance

360 Benchmarking for Pork ProductionDr. Tom Stein

NPB Pork Management Conference 2015New Orleans, LA

June 18, 2015

Innovative. Precise. Secure. 1

Sow Farm Performance

Table 1. Sow Farms Ranked on Pigs Weaned/Mated Female/YearReport Period: January - December, 2014©Copyright, MetaFarms, Inc. 2015

Bottom 10%

Bottom 33% Average

Top 33%

Top 10%

Pigs weaned / mated female / yr (PWMFY) 19.0 21.1 24.0 26.9 28.3Litters / mated female / yr (LMFY) 2.09 2.20 2.30 2.40 2.45Total Productivity Index™ (mated) 37.1 40.9 44.6 49.4 54.6Farrowing rate 79.9% 82.2% 85.2% 89.0% 89.2%

Average total born 13.1 13.3 13.5 14.0 14.1Average l ive born 11.7 11.9 12.2 12.7 12.9

Pre-wean mortality % 19.0% 17.5% 14.7% 12.4% 11.4%Pigs weaned / sow 9.3 9.5 10.2 10.9 11.1

Wean age 21.0 20.1 20.1 20.3 20.2

Average mated inventory 2,031 2,472 2,145 2,004 2,256Culling % 42.2% 42.8% 43.4% 44.7% 45.7%Sow death % 10.2% 10.8% 9.3% 8.0% 7.1%

Gilt arrival age (days) 233.0 236.6 219.5 204.0 198.4Gilt arrival weight 289.4 294.6 291.6 285.0 283.2Entry - 1st serv interval 38.5 37.0 36.1 36.2 34.5Weight per day-of-age at arrival 1.13 1.28 1.36 1.39 1.45

Table 4. Year-Over-Year Comparison of Sow Farm PerformanceDatabase Averages from MetaFarms, Inc. Sow™ Software

2012 2013 2014

No. sow farms 246 292 306No. sows 509,778 615,113 692,315

Pigs weaned / mated female / yr (PWMFY) 24.1 24.4 24.0Litters / mated female / yr (LMFY) 2.32 2.31 2.30Farrowing rate 85.7% 85.9% 85.2%

Average total born 13.1 13.4 13.5Average born dead 1.2 1.3 1.3

Pre-wean mortality % 12.8% 13.5% 14.7%Pigs weaned / sow 10.1 10.2 10.2Average wean age 20.0 20.3 20.1Average wean weight (pig) 13.6 13.6 13.6

Average mated female inventory 2,072 2,071 2,145Herd parity (w/o gilt pool) 2.6 2.7 2.8Sow culling % 48.6% 45.1% 43.4%Sow mortality % 7.9% 8.2% 9.3%

Table 3. Percentile Distributions for Sow Farm PerformanceReport Period: January - December, 2014©Copyright, MetaFarms, Inc. 2015

10 20 30 40 50 60 70 80 90

Pigs weaned / mated female / yr (PWMFY) 20.1 21.9 22.8 23.5 24.0 24.9 25.6 26.4 27.3

Litters / mated female / yr (LMFY) 2.12 2.23 2.26 2.30 2.33 2.34 2.37 2.41 2.45

Non-Productive days (w/o gilt pool) 25.9 28.8 33.0 35.7 38.8 43.0 46.5 51.4 61.6

% Repeats 14% 12% 11% 10% 9% 8% 6% 5% 4%

% Abort 2.9% 1.9% 1.1% 0.9% 0.6% 0.5% 0.3% 0.1% 0.0%

Wean-1st service 9.7 8.7 8.0 7.5 7.1 6.7 6.4 6.1 5.7

Farrowing rate 79.0% 81.3% 83.1% 84.5% 85.4% 86.8% 88.1% 89.5% 91.3%

Average total born 12.5 12.9 13.1 13.3 13.6 13.8 13.9 14.1 14.5

Average l ive born 11.3 11.6 11.8 12.0 12.3 12.5 12.6 12.8 13.1

Pre-wean mortality % 21.0% 18.5% 16.4% 15.3% 14.4% 13.3% 11.8% 10.4% 9.1%

Pigs weaned / sow 9.1 9.5 9.8 10.1 10.3 10.5 10.6 10.8 11.1

Wean age 18.2 18.9 19.3 19.6 20.0 20.4 20.7 21.2 21.8

Wean weight (pig) 12.3 12.8 13.0 13.3 13.5 13.7 14.0 14.4 15.2

Culling % 58.7% 50.7% 47.4% 45.4% 42.5% 41.1% 37.4% 34.3% 30.4%

Sow death % 14.0% 11.8% 10.6% 9.6% 8.9% 7.7% 7.2% 6.6% 5.2%

Percentiles

COMPANY Averages for Sow FarmPerformace

COMPANY Averages for Sow Farm Performance 2014

Bottom 25% Average Top 25%

No. Companies 15 59 15

Pigs weaned / mated female / yr (PWMFY) 20.0 23.9 27.3

Litters / mated female / yr (LMFY) 2.10 2.27 2.40

Pigs weaned / farrowing space / yr (PWCY) 122.1 144.4 161.9

Total Productivity Index™ (mated) 39.0 46.2 53.0

Pigs weaned per lifetime per female 45.1 44.2 47.1

Non-Productive days (w/o gilt pool) 53.3 43.8 30.5

Wean-1st service 8.3 7.6 6.4

% Repeats 13.9% 10.4% 7.4%

Farrowing rate 81.5% 84.2% 87.3%

Average total born 13.2 13.6 14.0

Average born dead 1.4 1.3 1.3

Average live born 11.8 12.2 12.8

Average birth weight (pig) 3.3 3.2 3.2

Pre-wean mortality % 16.7% 14.4% 11.0%

Pigs weaned / sow 9.5 10.2 10.8

Average wean age 21.5 20.5 20.4

Average wean weight (pig) 14.9 13.7 14.0

Lactation ADG (w/o birthweight) 0.635 0.626 0.641

Lb weaned / sow / yr 299.5 324.9 381.6

Average mated inventory 1,251 1,884 1,919

Herd parity (w/o gilt pool) 3.1 2.8 2.6

Culling % 35.5% 42.3% 43.8%

Sow death % 10.2% 8.7% 7.7%

Average gilt arrival age (days) 251.7 218.1 197.9

Average gilt arrival weight 289.9 289.6 285.4

Entry - 1st serv interval 37.0 39.1 37.9

Weight per Day of Age 1.09 1.34 1.42

Benchmark Thinking

1. How do I compare to other pork producers right now? Am I above average, below average or in the middle of the pack?

2. No matter where I rank today, what are my strengths and weaknesses?

3. What is my RATE OF CHANGE over the past 5 to 10 years compared to the average rate of change in other pork production companies

Rate of Change Benchmarking for Sow Farm Performance

Edwards S & E Baxter. Producing two tonnes of pigs per sow. Advances in Pig Production: 23: 185-189, 2012

Benchmark Thinking

1. Compare to the relevant granularity

A. Your company v. other companies’ performance (COMPANY LEVEL; sow farms & finishing).

B. Individual sow farms v. all sow farms (SOW FARM LEVEL)

C. Indexed individual finishing closeouts (or a set of closeouts) v. indexed rollup of finishing closeouts (INDEXED CLOSEOUT LEVEL)

D. Key performance item v. the universe of performance on that same item (ITEM LEVEL; sow farms & finishing).

Nursery, Finishing & Wean-to-Finish

Closeout Performance

Average Closeout Performance by Closeout Type (Jan-Dec 2014)

Nursery Finishing W2F

No. Closeouts 6,349 7,874 2,481No. Pigs 12,513,662 14,408,495 5,550,928

Start Wt 12.9 54.6 13.2Out Wt w/o Dead Wt 53 280.9 282.4Sub-Stnd Sales as % of Pigs Out 1.6% 1.6%Market Sales as % of Pigs Out 92.9% 91.5%Inv Adjust as % of Pigs Out 0.20% 0.25%Lb Feed Per Hd 65 640 699Mortality as % of Pigs In 3.6% 4.4% 6.1%ADG 0.84 1.85 1.59FCR 1.62 2.87 2.64Adj FCR* 1.64 2.79 2.76ADFI 1.42 5.31 4.20Avg DOF 46.6 121.2 168.5Days to First (Top-Out) Sale 106 154.0Actual Sqft/Pig 2.8 7.2 6.3Avg Cull Wt 50.1 207.8 229.8DDGS % 10.1% 19.2% 16.7%Feed Cost per Lb Gain Prod $0.3431 $0.3438 $0.3375Avg Feed Med Costs Per Pig $0.48 $1.46 $2.00Avg Other Med Costs Per Pig $2.42 $1.20 $3.05Avg Feed Cost/Ton $474.00 $247.72 $257.54Avg Corn Cost/Bu $4.55 $4.62 $4.51Avg SBM Cost/Ton $443.62 $449.67 $453.64Avg DDGS Cost/Ton $174.17 $188.52 $185.91

* Adjusted FCR for FINISHING & WEAN-TO-FINISH Closeouts is 50-270 lb* Adjusted FCR for NURSERY Closeouts is 12-55 lb

2014

Percentile Distribution Across NURSERY Closeouts (Jan-Dec 2014)

10 30 50 70 90

Start Wt 11.5 12.0 12.9 13.6 14.7Out Wt w/o Dead Wt 35.6 45.0 53.0 60.4 69.4Lb Feed Per Hd 34.9 49.8 63.3 76.6 95.5Mortality as % of Pigs In 7.0% 3.7% 2.5% 1.6% 0.8%ADG 0.63 0.76 0.85 0.94 1.04FCR 1.94 1.72 1.60 1.50 1.32Adj FCR (12-55 lb) 1.97 1.73 1.61 1.50 1.33ADFI 1.10 1.26 1.40 1.55 1.77Actual Sqft/Pig 2.2 2.6 2.8 3.0 3.3Avg DOF 35.9 41.0 47.3 51.9 56.8DDGS % 3.7% 6.2% 9.1% 12.7% 17.3%Feed Cost per Lb Gain $0.4534 $0.3726 $0.3309 $0.2956 $0.2555Feed Med Costs Per Pig $0.89 $0.55 $0.42 $0.31 $0.17Other Med Costs Per Pig $4.28 $3.01 $2.50 $1.59 $0.41Feed Cost/Ton $709.45 $509.77 $441.43 $389.84 $338.09

Percentiles

Benchmarking Nursery Closeouts by Start Weight

9 - 10 10 - 11 11 - 12 12 -13 13 - 14 14 - 15 15 - 16 OverallNo. Closeouts 99 237 780 1,949 1,734 941 357 6,097No. Pigs 83,183 485,766 2,394,003 4,130,919 2,769,842 1,691,976 586,282 12,141,971Start Wt 13.0Out Wt 43.0 50.9 53.3 53.8 55.1 54.3 55.4 54.1Avg DOF 48.3 50.2 48.9 48.2 48.5 47.5 45.5 48.2Lb Feed/Pig 56.3 66.0 67.4 66.4 67.8 65.9 65.4 66.7Cost/Lb Gain $0.4368 $0.3366 $0.3326 $0.3449 $0.3554 $0.3558 $0.3699 $0.3508Mortality % 4.9% 3.3% 2.8% 3.3% 2.9% 2.9% 2.2% 3.0%ADG 0.67 0.78 0.84 0.84 0.84 0.82 0.86 0.84FCR 1.72 1.64 1.62 1.62 1.64 1.66 1.65 1.64ADFI 1.16 1.27 1.35 1.36 1.37 1.36 1.41 1.36

Average Start Wt (lbs)

penalty for lights 10 - 11 lbhuge penalty for very light < 10 lb11 - 15 lb, outcomes are similar

NURSERY BENCHMARKING INSIGHTS

The Power of Organized Data™

Feed cost/lb gain -- just as you'd expectGroup size effects? Huge variation in group size, not easy to see a patternNo. of sow farm sources into nursery -- no effectNo. of fills -- no effectTime to fill -- no effect

lighter start wt groups have higher mortality %higher mortality groups have higher feed cost/lb gainhigher mortality groups have lower ADG, higher FCR, lower ADFI

Percentile Distributions Across FINISHING Closeouts (Jan-Dec 2014)

10 30 50 70 90

Start Wt 37.3 46.9 54.7 61.1 71.5Out Wt w/o Dead Wt 263.6 274.2 281.0 287.8 298.5Lb Feed Per Hd 718.0 671.3 640.1 609.2 565.0Mortality as % of Pigs In 7.9% 5.0% 3.6% 2.7% 1.7%ADG 1.66 1.78 1.85 1.93 2.05FCR 3.20 3.01 2.87 2.74 2.52Adj FCR (50 to 270) 3.12 2.92 2.78 2.66 2.48ADFI 4.60 5.03 5.33 5.61 6.00Avg DOF 137 128 121 114 105Avg Cull Wt 280 244 220 191 100Actual Sqft/Pig 6.8 7.1 7.2 7.4 7.7DDGS % 10.9% 16.1% 17.8% 21.7% 29.5%Feed Cost per Lb Gain $0.3992 $0.3648 $0.3445 $0.3219 $0.2838Feed Med Costs Per Pig $2.90 $1.82 $1.18 $0.79 $0.44Other Med Costs Per Pig $2.90 $1.36 $0.76 $0.50 $0.27Feed Cost/Ton $291 $264 $243 $227 $205Corn Cost/Bu $5.62 $4.77 $4.55 $4.32 $3.84DDGS Cost/Ton $231 $215 $198 $170 $124SBM Cost/Ton $493 $472 $449 $429 $410

Percentiles

Percentile Distributions Across WEAN-TO-FINISH Closeouts (Jan-Dec 2014)

10 30 50 70 90

Pigs In Wt 11.9 12.5 13.0 13.7 14.8Start Wt 11.9 12.5 13.0 13.7 14.7Out Wt w/o Dead Wt 267.0 276.1 283.1 289.5 298.8Sub-Stnd Sales as % of Pigs Out 3.3% 1.9% 1.3% 0.6% 0.0%Market Sales as % of Pigs Out 85.2% 90.5% 92.7% 94.2% 95.9%Lb Feed Per Hd 764.6 730.1 703.8 674.6 625.6Mortality as % of Pigs In 10.6% 6.8% 5.2% 4.0% 2.5%ADG 1.46 1.54 1.59 1.65 1.73FCR 2.85 2.72 2.63 2.55 2.42Adj FCR (50-270) 2.97 2.84 2.75 2.66 2.54ADFI 3.84 4.03 4.19 4.35 4.58Avg DOF 183 174 169 163 153Days To First STD Sale 168 159 154 148 140DDGS% 6.6% 13.2% 16.8% 20.8% 25.2%Feed Cost per Lb Gain $0.3865 $0.3585 $0.3376 $0.3179 $0.2884Feed Med Costs Per Pig $3.71 $2.63 $1.88 $1.13 $0.44Other Med Costs Per Pig $5.52 $3.69 $2.80 $2.09 $1.11Feed Cost/Ton $292.94 $272.67 $259.25 $243.47 $220.56

Percentiles

Closeout Percentile

Start Wt 13.0 50

Out Wt 50.0 36

DOF 43.6 24

Lb Feed/Pig 60.2 37

Cost/Lb Gain $0.4918 6

Mortality % 1.4% 74

ADG 0.84 50

FCR 1.64 46

ADFI 1.38 55

Group Size 2,501 75

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Example of a ‘report card’ for nursery closeout

COMPANY Averages for Nursery & Finishing

Performance

COMPANY Averages for Nursery Performance 2014


No. Companies 22 87 22No. Pigs 2,304,136 12,442,395 4,801,224Start Wt 13.5 13.2 13.5Actual Sqft/Pig 2.6 2.9 2.9Avg Out Wt w/o Dead Wt 46.4 52.5 56.6Lb Feed Per Hd 56.2 63.1 65.6Mortality as % of Pigs In 4.06% 3.01% 2.14%ADG 0.74 0.85 0.94FC 1.70 1.61 1.50ADFI 1.33 1.40 1.45DOF 49 52 52

Feed Cost per Lb Gain Prod $0.4071 $0.3467 $0.2902Avg Feed Med Costs Per Pig $0.41 $0.49 $0.48Avg Other Med Costs Per Pig $1.51 $1.92 $2.13Avg Feed Cost/Ton $486 $448 $440Avg Corn Cost/Bu $4.57 $4.40 $4.19Avg SBM Cost/Ton $445 $452 $449Avg DDGS Cost/Ton $162 $181 $158Percent DDGS 9.1% 9.1% 10.4%

COMPANY Averages for Finishing Performance 2014


No. Companies 22 91 22Started 2,440,886 14,382,638 3,058,982

Start Wt 55.6 54.1 50.0Avg Out Wt w/o Dead Wt 277.5 282.1 283.3Market Sales as % of Pigs Out 91.3% 93.2% 94.8%Lb Feed Per Hd 660 643 611Mortality as % of Pigs In 5.0% 4.0% 2.8%ADG 1.75 1.84 1.93FC 3.01 2.86 2.64Adj FCR (50 to 270) 2.95 2.78 2.58ADFI 5.32 5.27 5.10DOF 146 140 136Days To First STD Sale 110 108 106

Feed Cost per Lb Gain Prod $0.3683 $0.3478 $0.3334Avg Feed Med Costs Per Pig $1.32 $1.64 $1.71Avg Other Med Costs Per Pig $1.18 $1.23 $1.26Avg Feed Cost/Ton $248 $248 $254Avg Corn Cost/Bu $4.57 $4.55 $4.50Avg SBM Cost/Ton $458 $457 $454Avg DDGS Cost/Ton $200 $194 $179Percent DDGS 17.3% 17.1% 16.5%

Weaned Pig Cost

Table 5. Weaned pig cost based on pig placements* in 2014Report period: January-December, 2014©Copyright MetaFarms, Inc. 2015

No. of Observations (Pig Placements) 8,864No. of Pigs 14,972,000

Weaned Pig CostAverage $42.80Median $40.52Mode $35.00Standard Deviation $8.67Lower 95% Confidence Interval $25.80Upper 95% Confidence Interval $59.79

* Pig placements represent groups of pigs moving into nursery or wean-to-finish barns One observation of weaned pig cost for each pig placement

10 20 30 40 50 60 70 80 90

$34.49 $35.71 $36.97 $38.81 $40.52 $42.74 $45.04 $47.87 $56.11

Table 6. Percentiles for Weaned Pig Cost 2014 (based on pig placements)

Nursery, Finishing, Wean-to-Finish

Cost of Production

Preliminary 2014 Benchmarking CloseoutsCost-of-Production Analysis

NURSERY FINISHINGWEAN-FINISH

No. Groups 5,695 7,164 2,185Started 10,104,945 11,468,365 4,686,727

Pig Cost $41.66 $67.16 $42.01Feed $13.94 $82.66 $91.42Facility $5.63 $13.98 $19.05Health $3.01 $1.15 $3.00Mgmt Fees $1.43 $1.76 $1.80Utilities $0.92 $1.67 $3.72Other $8.62 $14.87 $13.82Total $75.21 $183.25 $174.82

2014 Cost of Production Analysis Based on Closeouts

Carcass Weight & Load Weight Variation

How to Increase Revenue

(And I Mean by a Bunch!)

Innovative. Precise. Secure.

Descriptive Analysis of Market Hog Sales Data Among Companies Using the MetaFarms’ Sales™ Software Thomas Stein DVM, MS, PhDMetaFarms, Inc. 421 W Travelers Trail , Burnsville, MN 55337

We founded MetaFarms in 2000 with the intent of developing new Web software applications for animal agriculture. Our intent was to create a software and database foundation that could meet the needs of multiple species – swine, beef, poultry, dairy, and aquaculture. Our thinking was driven by feedback and requests from producers saying they needed a data foundation and set of applications that “tie everything together.”

Since then, MetaFarms has grown into a business with a best-practice, world-class data center; a large investment in the underlying technology used to provide our software services –including complete virtualization of the server farms and storage area network; a robust, underlying Web-services and database foundation for our applications; Web applications for the swine, beef feedlot, egg-layer, turkey grow-out, and chicken grow-out markets; and a strong, diverse, and global customer base.

Our set of software applications and services for the porkindustry includes applications for managing sow farms (Sow™), nursery-finishing groups (Finish™), and sales/carcass data (Sales™). It includes modules for managing feed data along with richly-featured and robust functionality for tracking movements, flows, and “products.” The software also provides interfaces to feed mill software programs used in North America. Customers use these interfaces each day to download feed deliveries (diets, ingredients, and costs) and automatically link the feed to sow farms and nursery/finishing/wean-to-finish groups. Similarly, each day –using interfaces we’ve built —customers download kill sheet load (lot) summary data and individual carcass data from major pork processors and link it to their finishing/wean-to-finish groups.

BACKGROUND

METHODS

We are reporting results from an analysis of the MetaFarms’ Sales database that show market hog sales to various US packers from January 1 to August 15 2014. The dataset includes over 83,000 truckloads (over 12,000,000 pigs), all based on a standardized set of business logic and calculation algorithms, which allows our analysts and users to make apples-to-apples comparisons of performance across and within companies.

Data from all market hog loads sold to primary packers (Cargill, Farmland, Hatfield, Hormel, IPC, JBS Swift, Morrell, Seaboard, Triumph, and Tyson) was pooled anonymously across pork production companies and scrubbed for data integrity. Of the 95,650 loads in the original data set, 12,306 were removed for not conforming to data integrity rules.

Figure 1 shows the distribution of carcass-weight standard deviation across loads. Note: These are the SD calculated for a load based on the distribution of individual carcasses within a load. The overall average was 15.3 lb carcass weight. Note the distribution is skewed to the right. The practical range of carcass weight SD runs from 8 lb to 25 lb.

Because SD and carcass weight are very highly correlated and carcass weight is highly correlated with total carcass value, we used CV% to determine the effect of variation within a load on total carcass value (Fig 2).

Figure 3 shows the distribution for load average carcass weight. This distributions will shift depending on market hog prices and feed cost; it is representative of the first 8 months of 2014 when market hog prices were higher than usual and feed costs lower than the past several years which caused producers to market at heavier sales weights. Tables 1 and 2 provide the descriptive statistics by packer (Table 1) and percentile distribution of all loads across all packers (Table 2).

RESULTS

Table 1. Market Hog Sales Benchmark Averages By Packer

Cargill Farmland Hatfield Hormel IPC JBS Swift Morrell Seaboard Triumph Tyson

No. Loads 3,962 4,174 1,963 8,151 1,755 22,513 9,399 1,638 2,321 25,686No. Pigs 597,242 650,405 310,352 1,249,721 231,347 3,565,334 1,419,664 136,023 355,281 3,534,102Load Size 151 156 158 153 132 158 151 83 153 138Live Wt 287.5 286.0 281.5 277.8 282.5 283.6 282.9 277.3 289.4 291.5Carcass Wt 218.5 217.7 210.7 209.4 214.4 212.6 213.9 209.8 221.2 222.4SD Carcass Wt 14.0 14.2 12.4 13.9 15.7 14.9 14.1 14.3 16.2 16.7CV Carcass Wt 6.4% 6.5% 5.9% 6.6% 7.4% 7.1% 6.6% 7.0% 7.3% 7.5%Backfat 0.74 0.91 0.73 0.72 0.76 0.73 0.66Loin Depth 2.53 2.17 2.59 2.52 2.45 2.54 2.89Yield % 76.2% 76.3% 75.9% 75.5% 75.9% 75.3% 75.8% 75.8% 76.4% 76.6%Lean % 53.4% 55.8% 55.3% 53.0% 53.4% 56.4%

REFERENCESStein TE. Pork production information systems and data analysis. In Proceedings, Allen D Leman Swine Conference 37: 4-22, 2010

Stein TE. Using production and financial records to plan, project, and manage forward. Advances in Pork Production 22: 97-103, 2011.

Table 2. Percentiles for Load Averages on Market Hog SalesJanuary 1 thru August 15, 2014

10 20 30 40 50 60 70 80 90

Live Wt 264.3 271.9 277.0 281.2 285.2 289.3 293.5 298.7 305.9Carcass Wt 199.4 205.5 209.6 213.0 216.2 219.5 223.1 227.5 233.9SD Carcass Wt 10.6 11.9 12.9 13.7 14.6 15.7 16.9 18.6 21.2CV Carcass Wt 4.9% 5.5% 5.9% 6.3% 6.8% 7.2% 7.8% 8.6% 9.9%

PERCENTILES

CONCLUSIONSThere is a clear opportunity to reduce carcass weight variation and increase value. Based on load value analysis of these data, reducing CV% from 9% to 5% increases the average carcass value by $16 per pig.

Thank You

Benchmarking Insights

1. Bottom 25% NEVER moves up to the average or up into the Top 25%.

2. Average RARELY moves up to the Top 25% and NEVER up into the Top 10%.

Weaned Pig cost is driven mainly by sow farm productivity

NURSERY Closeout Performance & Cost Trends (2012-2014)

2012 2013 2014


Start Wt 13 13 12.9Out Wt w/o Dead Wt 54 51.9 53Lb Feed Per Hd 67 63 65Inv Adjust as % of Pigs Out 0.22% 0.07%Mortality as % of Pigs In 3.0% 3.6% 3.6%ADG 0.84 0.82 0.84FCR 1.64 1.64 1.62Adj FCR* 1.66 1.64ADFI 1.36 1.38 1.42Avg DOF 48 46.7 46.6Actual Sqft/Pig 2.8 2.8DDGS % 8.2% 10.1%Feed Cost per Lb Gain $0.3508 $0.3737 $0.3431Feed Med Costs Per Pig $0.44 $0.48Other Med Costs Per Pig $0.81 $2.42Feed Cost/Ton $432.00 $462.00 $474.00Corn Cost/Bu $6.44 $6.57 $4.55SBM Cost/Ton $448.00 $443.62DDGS Cost/Ton $243.00 $174.17

* Adjusted FCR for NURSERY Closeouts is 12-55 lb

NURSERY Closeout Averages

FINISHING Closeout Performance & Cost Trends (2012-2014)

2012 2013 2014


Start Wt 55 52.8 54.6Out Wt w/o Dead Wt 270 271.1 280.9Sub-Stnd Sales as % of Pigs Out 1.8% 1.7% 1.6%Market Sales as % of Pigs Out 90.0% 93.0% 92.9%Inv Adjust as % of Pigs Out 0.28% 0.20%Lb Feed Per Hd 612 611 640Mortality as % of Pigs In 4.1% 4.4% 4.4%ADG 1.80 1.82 1.85FCR 2.92 2.83 2.87Adj FCR* 2.65 2.79ADFI 5.25 5.16 5.31Avg DOF 120 119 121.2Days to First (Top-Out) Sale 103 106Avg Cull Wt 215 208Actual Sqft/Pig 7.2 7.2DDGS % 19.6% 19.2%Feed Cost per Lb Gain $0.4106 $0.4371 $0.3438Feed Med Costs Per Pig $1.63 $1.46Other Med Costs Per Pig $1.62 $1.20Feed Cost/Ton $281.13 $309.76 $247.72Corn Cost/Bu $6.38 $6.78 $4.62SBM Cost/Ton $451.37 $449.67DDGS Cost/Ton $251.28 $188.52

* Adjusted FCR for FINISHING was 50-250 lb in 2013 and 50-270 lb in 2014

FINISHING Closeout Averages

WEAN-TO-FINISH (Single-Stock) Closeout Performance & Cost Trends (2012-2014)

2012 2013 2014


Start Wt 13.5 13.5 13.2Out Wt w/o Dead Wt 270.0 270.9 282.4Sub-Stnd Sales as % of Pigs Out 2.6% 1.8% 1.6%Market Sales as % of Pigs Out 89.0% 91.0% 91.5%Inv Adjust as % of Pigs Out 0.20% 0.25%Lb Feed Per Hd 661 665 699Mortality as % of Pigs In 5.9% 6.3% 6.1%ADG 1.57 1.58 1.59FCR 2.64 2.60 2.64Adj FCR* 2.76ADFI 4.12 4.11 4.20Avg DOF 163.0 163.0 168.5Days to First (Top-Out) Sale 149.0 154.0Avg Cull Wt 212.0 229.8Actual Sqft/Pig 7.0 6.3DDGS % 16.7%Feed Cost per Lb Gain $0.3652 $0.4199 $0.3375Feed Med Costs Per Pig $1.99 $2.00Other Med Costs Per Pig $2.86 $3.05Feed Cost/Ton $294.50 $324.87 $257.54Corn Cost/Bu $6.55 $6.58 $4.51SBM Cost/Ton $453.44 $453.64DDGS Cost/Ton $252.94 $185.91

* Adjusted FCR for WEAN-TO-FINISH Closeouts was 50-270 lb in 2014

W2F Closeout (Single-Stock) Averages

TABLE 1. Cost of Production for NURSERY Groups Among Producers Using MetaFarms Software

12 lb In Weight -- 55 lb Out Weight (Average)

Period: January 1 - June 30, 2014

Copyright © 2014, MetaFarms, Inc.

Number of Nursery Groups 3,094

Number of Pigs 5,556,824

Avg Low High

Wean Pig Cost $41.66 $27.05 $56.01

Feed $13.94 $10.13 $18.66

Facility $5.63 $4.16 $7.84

Health $3.01 $1.28 $5.65

Other $2.61 $0.20 $6.60

Labor $2.54 $1.05 $5.01

Mgmt Fees $1.43 $0.61 $3.29

Trucking $1.10 $0.49 $1.68

Utilities $0.92 $0.31 $1.85

Operating Interest $0.55 $0.33 $0.79

G&A $0.38 $0.17 $0.59

Discount Pigs $0.34 $0.08 $0.59

Repairs & Maint $0.31 $0.20 $0.46

Professional Fees $0.27 $0.10 $0.62

Misc $0.22 $0.05 $0.51

Taxes $0.13 $0.08 $0.17

Insurance-Pigs $0.13 $0.08 $0.19

Supplies $0.04 $0.02 $0.06

Total $75.21

Range

Per Head Produced @ 55lb

TABLE 2. Cost of Production for FINISHING Groups Among Producers Using MetaFarms Software

55 lb In Weight - 285 lb Out Weight (Average)



Number of Finishing Groups 4,727


Avg Low High Avg

Feed $82.66 $67.00 $101.99 $29.00

Feeder Pig Cost $67.16 $49.85 $83.80 $23.56

Facility $13.98 $10.29 $19.34 $4.90

Labor $3.15 $1.45 $4.54 $1.10

Other $2.03 $1.05 $3.83 $0.71

Transport Out $1.96 $0.67 $3.65 $0.69

Management Fees $1.76 $1.01 $2.98 $0.62

Operating Interest $1.69 $0.84 $2.82 $0.59

Utilities $1.67 $0.52 $2.79 $0.58

Marketing Fees $1.17 $0.45 $2.50 $0.41

Animal Health $1.15 $0.33 $3.35 $0.40

Misc $1.15 $0.28 $2.74 $0.40

Repairs & Maintainence$1.11 $0.54 $2.46 $0.39

Professional Fees $0.95 $0.10 $2.12 $0.33

Transport In $0.68 $0.24 $1.65 $0.24

G&A $0.45 $0.13 $0.84 $0.16

Insurance-Pigs $0.42 $0.14 $1.00 $0.15

Supplies $0.11 $0.01 $0.52 $0.04

Total $183.25 $64.30

Range

Per Head Sold @ 285lb average Per CWT

Sold

TABLE 3. Cost of Production for WEAN-TO-FINISH Groups Among Producers Using MetaFarms Software

12 lb In Weight - 285 lb Out Weight (Average)



Number of Wean-to-Finish Groups 1,167


Avg Low High Avg

Feed $91.42 $66.11 $107.77 $32.08

Wean Pig Cost $42.01 $34.46 $54.21 $14.74

Facility $19.05 $14.29 $25.20 $6.68

Utils $3.72 $2.67 $5.21 $1.31

Health $3.00 $0.90 $5.80 $1.05

Labor $2.51 $1.38 $3.29 $0.88

Trucking $2.35 $0.50 $5.32 $0.83

Int-Opr $2.03 $1.05 $3.64 $0.71

Mgmt Fees $1.80 $0.75 $3.07 $0.63

Rep & Maint $1.42 $0.58 $2.06 $0.50

Prof Fees $1.40 $0.59 $2.76 $0.49

Other $1.37 $0.25 $3.54 $0.48

Mktg Fees $0.77 $0.62 $0.99 $0.27

Ins-Pigs $0.54 $0.22 $1.06 $0.19

G&A $0.42 $0.15 $0.69 $0.15

Taxes $0.29 $0.05 $0.59 $0.10

Misc $0.26 $0.06 $0.68 $0.09

Fuel $0.23 $0.04 $0.52 $0.08

Supplies $0.23 $0.01 $0.88 $0.08

Total $174.82 $61.34

Range

Per Head Sold @ 285lb average Per CWT

Sold

Table 1. Sow Farm Performance by CountryCanada US

Pigs weaned / mated female / yr (PWMFY) 25.0 23.8Litters / mated female / yr (LMFY) 2.37 2.28

% Repeats 7.2% 9.5%% Abort 0.6% 1.3%Farrowing rate 87.9% 84.5%

Average total born 13.8 13.5Average l ive born 12.4 12.2

Pre-wean mortality % 14.9% 14.6%Pigs weaned / sow 10.5 10.1

Wean age 20.5 20.1

Average mated inventory 2,158 2,142Herd parity (w/o gilt pool) 2.8 2.8Culling rate % 44.0% 43.3%Sow death % 10.7% 9.0%

Table 2. NURSERY Closeout Performance: Canada v. US (Jan-Dec 2014)

Canada US

No. Closeouts 1,302 5,047Started 3,037,654 9,476,008

Actual Sqft/Pig 2.9 2.7Start Wt 13.0 12.9Out Wt w/o Dead Wt 63.3 50.3Inv Adjust as % of Pigs Out 0.04% 0.08%Lb Feed Per Hd 80.6 60.5Feed Cost per Lb Gain 0.3539Feed Med Costs Per Pig 0.48Other Med Costs Per Pig 0.76 2.45Mortality as % of Pigs In 3.4% 3.6%ADG 0.97 0.81FC 1.62 1.62Adj FCR (12-55lb) 1.55 1.66ADFI 1.57 1.38Avg DOF 51 45Avg Corn Cost/Bu 4.55Avg DDGS Cost/Ton 174.17Avg SBM Cost/Ton 443.62Percent DDGS 10.1%

Table 3. FINISHING Closeout Performance: Canada v. US (Jan-Dec 2014)

Canada US

No. Closeouts 1,630 6,244No. Pigs 3,454,215 10,954,280

Actual Sqft/Pig 7.4 7.2Start Wt 63.6 52.2Out Wt w/o Dead Wt 275.0 282.5Sub-Stnd Sales as % of Pigs Out 1.2% 1.7%Market Sales as % of Pigs Out 93.7% 92.7%Inv Adjust as % of Pigs Out 0.17% 0.21%Lb Feed Per Hd 628.0 643.2Mortality as % of Pigs In 4.4% 4.4%ADG 1.91 1.84FC 3.01 2.83Adj FCR (50 to 270) 2.91 2.76ADFI 5.70 5.21Avg DOF 109 124Days To First STD Sale 98 108Feed Cost per Lb Gain Prod $0.3345 $0.3462Avg Feed Med Costs Per Pig $1.46Avg Other Med Costs Per Pig $1.27 $1.20Avg Feed Cost/Ton 244.15Avg Corn Cost/Bu 4.62Avg DDGS Cost/Ton 188.52Avg SBM Cost/Ton 449.67Percent DDGS 19.2%

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