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Changes in Management for Pork Contracts

This comprehensive guide outlines key changes in management for pork contracts, emphasizing strategies to achieve predictable cash flow through effective contracting. It highlights benefits such as reduced cash flow fluctuations, shared risks, and guaranteed markets. Essential considerations include strict biosecurity measures, production planning, and reliable genetic sources. The guide also addresses record-keeping necessities and offers insights for extension personnel on assessing goals and production costs in contract farming. Learn to navigate the complexities of swine contract management successfully.

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Changes in Management for Pork Contracts

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  1. Changes in Management for Pork Contracts Tim Safranski State Swine Breeding Specialist (573) 884-7994

  2. Contracting • Reduce fluctuation in cash flow • Decrease risk (i.e. shared) • Share costs • Have a guaranteed market • Access to $$$

  3. Contractor or Contractee?

  4. Predictable cash flow Predictable cash flow To contract, or not to contract….

  5. To Contract, or not to contract…. • Predictable cash flow • Forces record keeping • Predictable cash flow • Forces record keeping

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. Other Considerations • Finisher • mixed sex • feed supplied, how to sell corn? • incentives • Farrow • replacement rate/culling decisions • breeding system (P = G + E + GxE) • incentives

  12. Litter Size Weaned

  13. 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

  14. Thoughts for Extension Personnel • Who are we working for? • What is our role? • Are costs of production known? • Are goals known?

  15. Standard Normal Distribution frequency Standard Deviations From Mean

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