Page 15 - Australian Pork Newspaper

Feed pigs to higher weights when
feed costs and hog prices go up
PIG producers should pigs at lower weights to add 10lb with a de- bushel, pigs with live
consider feeding to heavier weights despite higher feed costs.
when feed costs rise, but today’s high market prices call for higher market weights even with rising feed prices.
creased feed efficiency of 3.7lb.
market hog prices at $A137.44 per cwt make money.
When feed prices go up, swine producers usually see profits go down.
“Pork producers still can afford to feed $A8.25 per bushel of corn to heavier finish weights and make a net profit from feeding.”
With current corn prices above $A8.25 per bushel, pigs with a live market hog price of $A82.46 per cwt still make money.
Every $A0.34-cent-per- bushel increase in corn prices cuts profits by $A0.18 to $A1.28 cents, depending on the final market weight.
However, that’s not nec- essarily the case in 2021. According to Uni- versity of Missouri Extension swine nutri- tionist Professor Marcia Shannon, this gives pro- ducers an opportunity to look at feeding to heavier weights despite higher
Prof Shannon gives two examples.
Every $A0.34-cent-per- bushel increase in corn prices drops profits by $A0.15 to $A1.32 cents, depending on the final market weight.
Marketing at lower market weights cuts losses.
feed costs.
“Higher market
Even as corn prices near $A8.25 per bushel, hogs weighing 240-300lb at $A82.46 per hundred- weight (45.4kg) fetch a return.
In a second scenario, Prof Shannon looks at the impact of marketing weight when the base live market price is $A137.44 per cwt with the same marketing dock and fa- cility charges as above.
As conditions change, producers might want to set a price signal on feed costs and market prices to know when to begin selling based on their own operations.
weights result in dra- matic net gains per pig under current grain and market conditions,” Prof Shannon said.
This includes a mar- keting dock for pigs outside of the 240-300lb live market weight and a $A0.21/lb charge for facilities and labour.
This remains profitable on 240-300lb hogs when corn goes to $A8.25 per bushel.
In any market, Prof Shannon recommends that producers fine-tune diets and focus on proper feed adjustments, feeder maintenance, grinding efficiency, diet formula- tions and feed quality.
“This comes despite higher feed inefficien- cies.”
This model assumes that it takes 10 days
Overall, with corn prices at $A8.25 per
“Some producers sell
Meat, poultry and
seafood packaging
demand to grow
DEMAND for meat, poultry and seafood packaging is fore- cast to increase 3.1 percent per year ac- cording to a food packaging study by the Freedonia Group.
• Brick packs – due to their leak resist- ance, transparency and transportation cost savings stemming from their efficient cube format
Continued expansion of the case-ready meat, poultry and seafood segment will drive de- mand for traditional packaging items such as film, trays, absor- bent pads and bags.
• Chub packaging – due to its low cost, good freezer protec- tion, ability to extend shelf life and retain flavour, and signifi- cant shipping and ma- terial cost savings
The importance of a longer product shelf life will support de- mand for high-barrier film products.
• Pouches – due to their convenience, re- sealability, ability to hold smaller portions and good graphics ca- pabilities
Consumer prefer- ence for convenience- oriented products such as easy to open, re- sealable, portable, mi- crowavable and single- portion packs will sup- port gains for products such as pouches, cook- in bags and vacuum skin packaging.
• Vacuum skin pack- aging – based on its ability to maximise shelf life, resist leaks, reduce material con- sumption and improve presentation.
The fastest growing products in the meat, poultry, and seafood packaging market in- clude plastic types such as:
This study examines the US market for food packaging, defined as primary and secondary packaging materials sold to food manufac- turers, primarily for products targeted at retail or foodservice markets.
Continued expansion of the case-ready meat, poultry and seafood segment will drive demand for traditional packaging items such as film, trays, absorbent pads and bags.
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Australian Pork Newspaper, December 2021 – Page 15