ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Summary of the Farrow to Finish Swine Enterprise Budgets - 2004 to 2009

by 5m Editor
2 March 2010, at 12:00am

Doug Richards, swine grower finisher specialist at Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) indicates the latest trends in income and costs for the province's pig industry.

The Swine Enterprise Budgets provide a guide to determining the costs of production for a swine enterprise. The cost figures are estimates based on information from a variety of sources within the Ontario industry. They are not obtained from an actual survey. Monthly budgets are calculated based on the current market hog and feed prices to provide an indication of the trend of income and expenses. Individual farm figures will vary depending on the resources, management, production, market conditions, risk and financial arrangements!

Summary (C$/pig) 2004 2005 2006 2007 2008 2009
Market hog value 164.12 149.34 131.93 127.08 128.15 122.91
Feed costs 86.55 70.03 70.91 85.50 104.00 103.52
Other variable costs 35.12 37.47 37.92 42.21 42.41 38.34
Fixed costs 23.69 27.40 25.20 24.88 21.06 20.85
Total cost per pig 145.36 134.90 134.03 152.59 167.47 162.70
Net return 18.76 14.44 -2.10 -25.50 -39.31 -39.79


Calculated return over feed costs (market hog value less feed costs)
2004 2005 2006 2007 2008 2009
C$ per pig 77.57 79.31 61.02 41.58 24.15 19.39


Calculated break-even prices (C$/ckg. 100 index) to cover
2004 2005 2006 2007 2008 2009
Variable costs 124.22 108.23 108.74 126.64 144.59 139.89
Total costs 148.41 135.82 133.91 151.32 165.37 160.44
**** 100 index market hog calculated using the average monthly dressed weight and index ****


Market information
2004 2005 2006 2007 2008 2009
Dressed weight (kg) 90.19 90.97 91.68 92.38 92.73 92.90
Market Index 108.60 109.18 109.17 109.16 109.20 109.16
Market price ($/ckg, 100 index) 167.56 150.36 131.82 126.02 126.55 121.20
Corn (FOB Huron, $/tonne) 136.21 102.85 110.60 151.24 197.42 166.47
Corn (Western Ont. Feed, $/tonne) 147.08 112.08 125.04 170.85 212.77 181.82
Soybean meal (Hamilton + $20, $/tonne) 388.20 298.46 266.45 321.31 438.45 496.27
US reference price (US$/cwt) 71.72 68.24 64.44 64.38 65.59 56.34
Canadian dollar value ($) 0.7697 0.8254 0.8819 0.9348 0.9390 0.8747
Prime interest rate (%) 4.00 4.40 5.76 6.08 5.10 2.64

Special notes:

The Ontario market hog information is collected and calculated from Ontario Pork sales data. Feed costs are mainly based on farm produced feed using daily prices for corn and soybean meal average values along with supplement and premix values collected from a number of feed companies. The other variable costs include the net cost of breeding stock replacements, health, breeding, marketing, utilities, barn supplies, office, miscellaneous, custom manure disposal, repairs and maintenance, labour and operating loan interest at prime plus one per cent. Fixed costs include depreciation, interest, property taxes and insurance. From 2004 to 2005 and 2007 to 2009, a cost was included in the variable costs for manure disposal. In 2006, it was assumed that the cost of manure disposal was offset with a value for the cropping enterprise.

March 2010