Rearing and finishing herd performance – tricky in current environment

For both the GB pig rearing and finishing herd, there continues to be a worsening of performance for average feed conversion ratios (FCR) and daily liveweight gains (DLWG) for 2021 compared to 2020 and 2019. This is unsurprising given the 2021 issues impacting the pig supply chain.

Rearing herd:

The average FCR for 2021 is 1.85, compared to 1.71 in 2020 and 1.83 in 2019. DLWG averaged 485g in 2021, compared to 487g in 2020 and 484g in 2019. Mortality rates were also slightly worse at 4.1% for 2021, compared to 4% in 2020 and 3.9% in 2019.

Finishing herd:

For 2021, finishing FCR averaged 2.82, compared to 2.67 in 2020 and 2.68 in 2019. DLWG averaged 850g in 2021, compared to 856g in 2020 and 860g in 2019. Mortality rates were also slightly worse at 3.9% in 2021, compared to 3.5% in 2020 and 3.2% in 2019.

Feed rations and considerations:

FCR and DLWG are affected by several factors, including genetic potential, management factors and the feeding quality of the concentrates fed.

The 2021 performance needs to be set in the context that 2021 was a challenging year when carcase weights increased, in several cases beyond the weights producers would have wished, due to abattoir issues that resulted in backlogs of pigs on farms. This will have negatively impacted FCR as FCR increases with age.

With feed prices at unprecedented highs, it is very important for pig producers to ensure that feed quality is suitable for the stage of production.

Compound feed manufacturers will continually monitor the ‘value’ of ingredients and work closely with their diet formulation departments to ensure that what they offer based on price and feeding value is appropriate. Where farmers purchase on forward pricing contracts the ingredients will be based on feed ingredients that can be forward priced and are available. Where farmers purchase closer to need, on a spot price basis, then the feed prices and ingredients will reflect what is available at that time. There is continual potential for product substitution for compound production.

For those home-mixing it is important to ensure the analysis of ingredients is known and suitable ration formulations are consistently produced. With fluctuating feed ingredient prices there may be a need to reformulate or react flexibly depending on availability and pricing. Traditionally, home-mixers have added value to their home-grown feed ingredients by feeding them through an animal, but with grain prices currently at such a high level and pig prices so low, this is no longer the case. For individual businesses, it may be advantageous to sell feed ingredients and purchase a compound product whilst ensuring they have optimised the number of pigs they are producing for the current price environment.

Effect on production costs:

If rearing and finishing FCR, DLWG and mortality could have been maintained at the 2019 levels, production costs would have been 5p/kg lower.

While improvements to physical performance could have had some positive impact on cost of production, with 2021 Q4 margins estimated at -42p/kg, improving physical performance alone will not be sufficient to move producers into a profitable situation.

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