Levels of production in a farrow to finish operation have significant impact on
\nthe bottom line under two of the four scenarios we have analyzed. From our
\nobservations, we have demonstrated that when the revenue per hog is below that of a variable cost structure, the advantages of chasing reduced fixed cost
\nare eliminated. When revenue does not cover variable costs, the advantages
\nof gained in fixed cost savings through high output are quickly eroded, and
\nthis situation promotes financial losses. This would suggest that maintaining
\nhigh pig production levels during any combination of feed cost level or any
\ntype of pig price level is not always the best option for the bottom line. Our
\nmodel has shown that there are significant disadvantages to maintaining
\nconstant high production during periods of low pig prices\/high feed costs and
\nlow pig prices\/low feed costs in a farrow to finish operation. It is impossible to show all scenarios and the reality is that each farm has its
\nown. We have tried to keep a simple approach by showing the relationships
\namong fixed and variable costs, and productivity and income, in a few
\nscenarios.<\/p>\n","protected":false},"excerpt":{"rendered":"
Levels of production in a farrow to finish operation have significant impact on the bottom line under two of the four scenarios we have analyzed. From our observations, we have demonstrated that when the revenue per hog is below that of a variable cost structure, the advantages of chasing reduced fixed cost are eliminated. When […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[930],"tags":[8882,2854,6784,190,583,231,7439,7440,5886,4165,6904,46,5108,2455,20007,34,5763,10859,14,1635,16262,2655,4257,17743,27282,3289,9478,7441,7442,20911,4874],"class_list":["post-4664","post","type-post","status-publish","format-standard","hentry","category-production","tag-al","tag-bin","tag-cos","tag-cost","tag-costs","tag-cover","tag-different-situations","tag-different-types","tag-farrow","tag-farrow-to-finish","tag-fee","tag-feed","tag-feed-cost","tag-financial","tag-gh","tag-hog","tag-margins","tag-nat","tag-pig","tag-pig-production","tag-pl","tag-price","tag-prices","tag-prod","tag-production","tag-profit","tag-profit-sensitivities-to-feed-price-and-pig","tag-scenerio","tag-slim","tag-t","tag-tan"],"_links":{"self":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/posts\/4664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/comments?post=4664"}],"version-history":[{"count":0,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/posts\/4664\/revisions"}],"wp:attachment":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/media?parent=4664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/categories?post=4664"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/tags?post=4664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}