Mitigating feed price volatility - Reducing the slaughter weight of pigs

Many producers have increased slaughter weights in recent years and the economics of doing this are generally in favour, even with high feed costs and pig price below the overall cost of production, as demonstrated in the following table 

With potentially increasing feed costs, it may become more profitable to finish pigs at a lower slaughter weight, with a reduced feed input. It is essential that producers discuss this with their contract supplier, nutritionist and after careful consideration of the data relating to profit margins.

Download the slaughter weight decisions table as a PDF

Calculation of margin over feed (£/pig) per 5 kg increase in carcass weight at various pig and feed prices

Feed price (£/tonne)

 

140

150

160

170

180

190

200

210

220

230

240

Pig price

(p/kg DW)

Kg Deadweight

 

 

 

 

 

 

 

 

 

 

 

From

To

 

 

 

 

 

 

 

 

 

 

 

 

 

 

105

 

 

 

65

70

2.39

2.19

1.99

1.78

1.58

1.38

1.17

0.97

0.76

0.56

0.36

70

 

75

2.30

2.09

1.88

1.67

1.46

1.25

1.04

0.83

0.62

0.41

0.20

75

 

80

2.21

1.99

1.78

1.56

1.34

1.13

0.91

0.69

0.47

0.26

0.04

80

 

85

2.12

1.89

1.67

1.45

1.22

1.00

0.78

0.55

0.33

0.11

(0.12)

85

 

90

2.03

1.80

1.57

1.34

1.11

0.88

0.64

0.41

0.18

(0.05)

(0.28)

90

 

95

1.93

1.70

1.46

1.22

0.99

0.75

0.51

0.28

0.04

(0.20)

(0.43)

95

 

100

1.84

1.60

1.36

1.11

0.87

0.62

0.38

0.14

(0.11)

(0.35)

(0.59)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

115

 

 

 

65

 

70

2.89

2.69

2.49

2.28

2.08

1.88

1.67

1.47

1.26

1.06

0.86

70

 

75

2.80

2.59

2.38

2.17

1.96

1.75

1.54

1.33

1.12

0.91

0.70

75

 

80

2.71

2.49

2.28

2.06

1.84

1.63

1.41

1.19

0.97

0.76

0.54

80

 

85

2.62

2.39

2.17

1.95

1.72

1.50

1.28

1.05

0.83

0.61

0.38

85

 

90

2.53

2.30

2.07

1.84

1.61

1.38

1.14

0.91

0.68

0.45

0.22

90

 

95

2.43

2.20

1.96

1.72

1.49

1.25

1.01

0.78

0.54

0.30

0.07

95

 

100

2.34

2.10

1.86

1.61

1.37

1.13

0.88

0.64

0.39

0.15

(0.09)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

125

 

 

 

65

 

70

3.39

3.19

2.99

2.78

2.58

2.38

2.17

1.97

1.76

1.56

1.36

70

 

75

3.30

3.09

2.88

2.67

2.46

2.25

2.04

1.83

1.62

1.41

1.20

75

 

80

3.21

2.99

2.78

2.56

2.34

2.13

1.91

1.69

1.47

1.26

1.04

80

 

85

3.12

2.89

2.67

2.45

2.22

2.00

1.78

1.55

1.33

1.11

0.88

85

 

90

3.03

2.80

2.57

2.34

2.11

1.88

1.64

1.41

1.18

0.95

0.72

90

 

95

2.93

2.70

2.46

2.22

1.99

1.75

1.51

1.28

1.04

0.80

0.57

95

 

100

2.84

2.60

2.36

2.11

1.87

1.63

1.38

1.14

0.89

0.65

0.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

135

 

 

 

65

 

70

3.89

3.69

3.49

3.28

3.08

2.88

2.67

2.47

2.26

2.06

1.86

70

 

75

3.80

3.59

3.38

3.17

2.96

2.75

2.54

2.33

2.12

1.91

1.70

75

 

80

3.71

3.49

3.28

3.06

2.84

2.63

2.41

2.19

1.97

1.76

1.54

80

 

85

3.62

3.39

3.17

2.95

2.72

2.50

2.28

2.05

1.83

1.61

1.38

85

 

90

3.53

3.30

3.07

2.84

2.61

2.38

2.14

1.91

1.68

1.45

1.22

90

 

95

3.43

3.20

2.96

2.72

2.49

2.25

2.01

1.78

1.54

1.30

1.07

95

 

100

3.34

3.10

2.86

2.61

2.37

2.13

1.88

1.64

1.39

1.15

0.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

145

 

 

 

65

 

70

4.39

4.19

3.99

3.78

3.58

3.38

3.17

2.97

2.76

2.56

2.36

70

 

75

4.30

4.09

3.88

3.67

3.46

3.25

3.04

2.83

2.62

2.41

2.20

75

 

80

4.21

3.99

3.78

3.56

3.34

3.13

2.91

2.69

2.47

2.26

2.04

80

 

85

4.12

3.89

3.67

3.45

3.22

3.00

2.78

2.55

2.33

2.11

1.88

85

 

90

4.03

3.80

3.57

3.34

3.11

2.88

2.64

2.41

2.18

1.95

1.72

90

 

95

3.93

3.70

3.46

3.22

2.99

2.75

2.51

2.28

2.04

1.80

1.57

95

 

100

3.84

3.60

3.36

3.11

2.87

2.63

2.38

2.14

1.89

1.65

1.41

Assumptions used in the above calculations: 5 kg DW @ 76% K.O. = 6.58 kg LW = 7 days @ 940 gms FCR: 65 - 70 @ 3.10, then increases in 0.1 increments per 5kg weight band to reach 3.70 from 95 - 100 N.B. These figures are for an assessment of short-term considerations only and do not take into account possible changes in fixed costs that might apply for longer term changes. Further advice and use of a detailed “What-If?” model incorporating calculations based on grading profile and contract specification is recommended before making significant policy changes.


Read the other two sections of our guide to mitigating feed price volatility