The Farmer's Office by Shanks Julia

Author:Shanks, Julia
Language: eng
Format: epub
ISBN: 9781550926101
Publisher: Perseus Books, LLC
Published: 2016-02-29T16:00:00+00:00

Pricing Pigs

Brassa Farm had been raising feeder piglets for the last 10 years. Their customers were farmers who bought them for about $95 each and then raised them for slaughter (and meat). In addition to the piglets, Brassa grew vegetables on a few acres and sold the produce at their farm store. Business was brisk, but they just weren’t getting ahead.

When we sat down to look at the numbers, they explained that the piglets were relatively cheap to raise. Each piglet had $10 in health costs plus about $14 for feed for the 8 weeks until they were sold. Brassa figured they earned $71 per piglet.

“What about the boars and the sows?” I asked. “How much does it cost to maintain them? Isn’t breeding part of the cost of raising the piglets?” They looked at me quizzically. In all their calculations, they never considered the cost of the boars and sows that “generate” the piglets. We calculated the cost to maintain their 2 boars and 10 sows. With the bedding, supplies and feed, the total came to almost $19,000 per year. Those 12 animals produced 200 piglets per year, which meant the cost of “generating” a single piglet was $95! Added to the cost of raising the piglet to 8 weeks, the real cost was $119. The Brassas were losing $24 per piglet.

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