For the target-weight scenario, net present value is maximized when the target weight
\nreaches about 270 pounds, holding other variables constant (figure 3). Also, model
\nsimulation suggests that if producers grow genetically improved feeder pigs and
\nif the purchase premium is appropriate, NPV improves to a value between $6,000
\nand $8,400. For example, this happens with a 0.1-pound increase in ADG and a
\npremium of $1.00 per head for 260 pounds to 280 pounds target-weight scenarios.
\nThe pricing matrix we used penalizes a pig heavier than 280 pounds. The
\nmodel indicates that targeting about 270 pounds market weight is optimal and
\nproducing pigs heavier than 280 pounds is not advised; thus, our model closely
\nemulates the current market situation. The pricing matrix signals producers to
\ndecrease the proportion of pigs heavier than 280 pounds. Our model advises a
\ncompliant target weight. Thus, independent finishers have incentive to market
\npigs just past the midpoint of the “sweet zone” of the pricing matrix (the range
\nof weights where pigs are not penalized for being too light or too heavy).
\nFor allied farmers with a fixed shipment schedule, it is also more profitable to
\nship heavier pigs than the 1995 to 1998 average. Extending all shipping schedules
\nby an additional eight days (a longer production period results in heavier pigs
\nshipped) maximizes NPV (figure 4). In this case, pigs will be on feed for 120,131,<\/p>\n","protected":false},"excerpt":{"rendered":"
For the target-weight scenario, net present value is maximized when the target weight reaches about 270 pounds, holding other variables constant (figure 3). Also, model simulation suggests that if producers grow genetically improved feeder pigs and if the purchase premium is appropriate, NPV improves to a value between $6,000 and $8,400. For example, this happens […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[8882,16845,583,19644,25122,6904,46,1293,19043,1066,13277,3804,20007,26304,5381,10858,1391,2394,9967,3872,7545,15459,14,33,16262,1324,4732,21206,17743,27282,219,2931,35,509,20911,4874,1301],"class_list":["post-4887","post","type-post","status-publish","format-standard","hentry","category-economics","tag-al","tag-close","tag-costs","tag-dd","tag-eet","tag-fee","tag-feed","tag-feeder","tag-feeder-pigs","tag-finisher","tag-finishers","tag-genetic","tag-gh","tag-how-much-is-tokyo-x-pig-seman","tag-light","tag-mark","tag-market-weight","tag-marketing","tag-matrix","tag-net-present-value","tag-optimal","tag-ped","tag-pig","tag-pigs","tag-pl","tag-pork","tag-pork-production","tag-prem","tag-prod","tag-production","tag-reduction","tag-shipping","tag-swine","tag-swine-producer","tag-t","tag-tan","tag-weight"],"_links":{"self":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/posts\/4887","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=4887"}],"version-history":[{"count":0,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/posts\/4887\/revisions"}],"wp:attachment":[{"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/media?parent=4887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/categories?post=4887"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/prairieswine.com\/rsc\/wp-json\/wp\/v2\/tags?post=4887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}