Introduction to Production Marketing - Dr. Mike Brumm, Brumm Swine Consultancy, from the 2016 Allen D. Leman Swine Conference, September 17-20, 2016, St. Paul, Minnesota, USA. More presentations at http://www.swinecast.com/2016-leman-swine-conference-material

1. Marketing Strategies
 Dr Mike Brumm – Brumm Swine
Consultancy Inc.
◦ Introduction to space and marketing
 Dr Josh Flohr – Nutriquest
◦ Estimating the impact of floor space allowance
on late finishing pig performance
 Dr Kyle Coble, New Fashion Pork
◦ How we implement marketing

2. Marketing Strategies
 Marketing decision involves cost of space,
incremental cost of gain, payment grid and
transportation load size

3. Cost of Space
 New Nurseries - $200+/space
◦ 3.25 sqft outside dimensions
 Wean-fin - $325 ($225-230 ++++)
◦ 7.5-7.8 sqft/pig outside dimensions (51 x 192 =
1250 pigs)
 Contract fees ($/space/yr)
◦ Nursery - $32 but now up to $36
◦ Grow-fin - $36 but have heard of $40
◦ Wean-Fin - $40-42 and some $44

4. Space Management Shows up in
Slaughter Data (i.e. sales decisions)
2014 2015 2015
Carcass wt vs Monday wt, lb
Packer owned vs
Producer sold
Monday 4.9
Tuesday 0.09 0.09 5.0
Wednesday 1.05 0.70 5.2
Thursday 1.41 1.31 4.6
Friday 2.38 1.99 5.0
LM_HG201
National Daily Direct Hog Prior Day Report

5. More Pigs and Bigger Pigs
USDA Agricultural Statistics Annual
y = 1030.6x + 69763
R² = 0.8943
y = 1.2988x + 157.97
R² = 0.9847
150
160
170
180
190
200
210
220
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
000hd
Federally Inspected Barrow & Gilt Slaughter
No. Hd Carcass Wt Linear (No. Hd) Linear (Carcass Wt)
100
95.3
72.6
77.1
90.7
86.2
81.6
KgLb
Carcass wt

6. 250
255
260
265
270
275
280
285
290
1 5 9 13 17 21 25 29 33 37 41 45 49 53
Wk of Year
Iowa/SMinn Live Weight at Slaughter
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Jun 1 Sept 1NW_LS720
Wt
Kg Lb
131.5
129.3
127.0
124.7
122.5
120.2
117.9
115.7

7. Expressing space as a function of
Bodyweight
 Allometric equation for floor space
allowance
Area = k * BW2/3
k = Area / BW2/3
Courtesy Dr. Harold Gonyou, Prairie Swine Centre

8. 84%
88%
92%
96%
100%
104%
0.020 0.022 0.024 0.026 0.028 0.030 0.032 0.034 0.036 0.038 0.040 0.042 0.044 0.046 0.048 0.050
ADG%ofControl
'k'
ADG Response to 'k'
full slats constant group size - metric
0.03360.0340
Gonyou et al, 2006

9. 0.0336

10. 0.0358

11. Critical Space (full slats) at ‘k’=
kg m2/pig lb ft2/pig
100 0.725 220 7.83
109.1 0.768 240 8.29
120.5 0.821 265 8.89
127 0.860 280 9.28
134 0.892 295 9.61
0.21450.0336

12. 123 kg, 0.58 m2
k = 0.024
270 lb, 6.3 ft2
k = 0.153

13. 270 lb, 8.0 ft2
k = 0.030
123 kg, 0.74 m2
k = 0.191

14. 102 kg 0.76 m2/pig 225 lb 8.2 ft2/pig
k = 0.035 k = 0.223

15. For each 3% change in space, daily
gain and daily feed intake change
1.0%
for full slats.
There is no predictable impact of
space allocation on feed/gain.

16. Impact of Space on ADG
Full slats
Wt
Lb (kg)
Adequate
ft2 (m2)
@ 7.2 ft2 (0.67 m2)
Reduction in ADG
50 (22.7) 2.9 (0.27)
225 (102.3) 8.0 (0.74) 3.3%
250 (113.6) 8.5 (0.79) 5.0%
275 (125.0) 9.2 (0.85) 7.2%
300 (136.4) 9.7 (0.90) 8.6%

17. Next Speakers
 Can we manipulate the response to space
by using alternate marketing strategies?
 How one system makes its marketing
decisions (what pigs on what loads).