Interactive Worksheet G2504 — New April 11, 1999

Grow-Finish Facility Evaluation Worksheet

Thomas J. Fangman, College of Veterinary Medicine and Commercial Agriculture Program
Joseph M. Zulovich, Department of Biological and Agricultural Engineering and Commercial Agriculture Program

Note
This worksheet is for educational purposes. The University of Missouri is not responsible for any actions taken as a result of using this worksheet.

Instructions

Inputs:
1. Facility capacity head
2. Market, clean and restock days
3. Weight of feeder pigs lbs
4. Average market weight lbs
5. Average daily gain
(must be greater than zero,
due to division on line 17)
lb/day
6. Feed efficiency lb feed/lb gain
7. Market hog price $/cwt
8. Mortality (per turn) %
9. Feeder pig price $/head
10. Feed price/ton $/ton
11. Veterinary & medical cost/pig $/pig
12. Bedding cost/pig $/pig
Input costs per pig space per year:
13. Facility charge (payments) $/space/year
14. Utilities (elec. & fuel) $/space/year
15. Repairs, taxes, insurance $/space/year
16. Labor and management $/space/year
Facility Performance:
17. Turns per year
= 365 days ÷ ((item 4 - item 3) ÷ item 5) + item 2
0.0/year
18. Number of feeder pigs purchased/year
= item 1 x item 17
0/year
19. Number of finished hogs sold per year
= ((100 - item 8) ÷ 100) x item 18
0/year
20. Total revenue per year
= (item 19 x item 4 ÷ 100) x item 7
$0.00/year
Expenses per year:
21. Facility charges
= item 1 x (item 13 + item 14 + item 15)
$0.00/year
22. Feed costs
= ((item 4 - item 3) x item 6 x item 18 x item 10) ÷ 2,000
$0.00/year
23. Feeder pig costs
= item 18 x item 9
$0.00/year
24. Veterinary costs
= item 18 x item 11
$0.00/year
25. Bedding costs
= item 18 x item 12
$0.00/year
26. Labor and management costs
= item 1 x item 16
$0.00/year
27. Total expenses per year
= sum of items 21, 22, 23, 24, 25 and 26
$0.00/year
Net returns per year:
(parentheses indicate negative numbers, i.e. losses)
28. Total net return
= item 20 - item 27
$0.00/year
29. Net return per finished hog sold
= item 28 ÷ item 19
$0.00/hog/year
30. Net return per cwt
= item 29 ÷ (item 4 ÷ 100)
$0.00/cwt/year
31. Net return per pig space
= item 28 ÷ item 1
$0.00/pig space/year

Worksheet definitions:

  1. Facility capacity — Number of pigs housed in the grow-finish facility being evaluated.
  2. Market, clean and restock — The number of days to complete marketing plus the number of days required to clean and restock facility with feeder pigs.
  3. Weight of feeder pigs — The average weight in pounds of pigs entering the facility at the beginning of the finishing period.
  4. Average market weight — The target market weight of hogs leaving the facility at the completion of the finishing period.
  5. Average daily gain — The average daily gain of the pigs produced in the facility. The style and effectiveness of the facility have direct influences on the average daily gain. A more effective production facility will have a higher average daily gain than a less effective production facility.
  6. Feed efficiency — Feed efficiency is the ratio of pounds of feed consumed to pounds of live weight gain in swine. Higher-value numbers indicate less efficient use of feed. Average feed efficiency depends on both the genetic quality of the pig and the production environment provided by the finishing facility. Pigs that perform poorly usually exhibit feed utilization traits that result in a higher feed efficiency value. Facility type, design and operation will determine a minimum value of feed efficiency that can realistically be expected from that facility.
  7. Market price of finished hogs — Average market price per hundredweight (cwt) of hogs raised in the facility. Some facilities provide a growth environment that causes genetically identical hogs to produce more fat.
  8. Mortality — Average mortality or death loss for a given facility per finishing period.
  9. Feeder pig price/head — Average price per feeder pig entering finishing facility. This can be the market price for feeder pigs for pigs produced in the operation or the purchase price for purchased pigs. Input of a fixed price while comparing different scenarios will remove price effect from the analyses.
  10. Feed price/ton — Average feed price per ton of grow-finish feed. Fixing the feed price while comparing different scenarios will remove feed price effect from the analyses.
  11. Veterinary and medical cost per pig — Average veterinary and medical costs per pig raised within a given facility. Lower performance facilities tend to have higher veterinary and medical costs per pig produced.
  12. Bedding cost/pig — The cost of bedding per pig produced if bedding is required in the grow-finish facility being evaluated. The finishing enterprise is charged for the cost of the bedding even if the farming operation produces the bedding.
  13. Facility charge (payments) — The payment per pig per year for the facility being evaluated. The facility charge is payment of debt service plus principal payment for a facility. This charge could also be lease payments if the facility is being rented.
  14. Utilities (electricity & fuel) — The average cost per pig space per year for electricity and heating fuel used in a given facility. If the facility does not require electricity or supplemental heating, no cost is input.
  15. Repairs, insurance, taxes — Costs (such as repairs, insurance and taxes) to own and maintain the grow-finish facility being evaluated. The amount in this input is based on the facility design and initial cost of construction. This value was held constant in the examples because increased repair costs for the low capital cost structures were assumed to be equivalent to the increased tax and insurance costs of the high capital cost facilities.
  16. Labor and management — The labor and management are an input cost per pig space per year to raise pigs within a given facility. The actual number of hours and type of management capability will depend on facility type. The value of this input incorporates both quantity and quality of labor requirements. Return to labor and management is held constant in this analysis and is based on a return per pig space per year.


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Copyright 1999 University of Missouri. Published by University Extension, University of Missouri-Columbia.

Issued in furtherance of Cooperative Extension Work Acts of May 8 and June 30, 1914, in cooperation with the United States Department of Agriculture. Ronald J. Turner, Director, Cooperative Extension Service, University of Missouri and Lincoln University, Columbia, Missouri 65211. • University Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam era veteran in employment or programs. If you have special needs as addressed by the Americans with Disabilities Act and need this publication in an alternative format, write ADA Officer, Extension and Agricultural Information, 1-98 Agriculture Building, Columbia, MO 65211, or call (573) 882-8237. Reasonable efforts will be made to accommodate your special needs.