The Rural Voice, 1980-04, Page 44I
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Ontario Fbrk
Perth County
Pork Producers
Swine Clubs
BY HAL THOMPSON
Once again the seven 4-H Swine Clubs in
Perth County are organizing for 1980. Over
the past three years the 4-H Swine Clubs
have grown in quality of the club program
providing information on nutrition, man-
agement and diseases of swine to the 4-H
members. And coupled with judging, field
trips and inter -club meetings have dev-
eloped real strong programs for their
clubs.
I n 1980 the 4-H clubs and leaders
include: Atwood -Harvey Clarke and Ralph
Henderson; Milverton - Murray Brodhagen
Mitchell -Bob Mitchell and Peter Huitema;
Kirkton-Keith Selves and Bob Stephens;
St. Marys - Irene Hotson and Glen Muma;
Stratford - Peter Jilesen and Nick Wouters
and Shakespeare - Paul Neebe and Brian
Misener. All of the above 4-H Swine Clubs
greatly appreciate the generous support of
the Perth County Pork Producers who help
to make their club successful.
Any young people 12-19 as of January 1,
1980 who would like to join a 4-H Swine
Club in 1980 should contact either one of
the 4-H Club Leaders above or the Ag.
Office.
Cost of
production
BY HANS FELDMAN
Producers frequently inquire about the
break-even price or cost of production
formulas. Two questions are asked: What
is a fair return on investment, labour, risk
& management, or what is the minimum
return required to stay in business over a
period of poor prices?
Several formulas are being used. The
one used by the OPl MB for the purpose of
establishing contract prices takes into
account the cost of feed, all supplies and
services, depreciation, equity, labour, risk
and management and stands as of Feb.,
1980 at $80.72/100 lbs. A formula devised
by OMAF swine specialists gave the cost of
production for farrow to finish operations
as of Oct. 1979 as app. $581100 lbs. This
does not include return for labour, risk and
management and includes only a fraction
of interest and depreciation on new
facilities. The formula assumes a high
degree of efficiency. A new up to date price
will be available shortly.
There are as many break-even prices as
there are different farms. For anybody with
complete records of expenses for '79 it is
simple to arrive at a figure by dividing
one's total annual production costs into the
total number of pounds or hogs produced.
Adjustments then can be made to compen-
sate for current increasses in input prices
to get a realistic present day figure.
Then main invariations from farm to
farm result from the difference in the size
of debt to be serviced, the amount bf
interest to be paid, cost of feed varying
with the amount of home grown grain or
corn available and crop yields and the
efficient utilization of manure. The oper-
ator's experience and know-how are very
important. Farrow to finish operations are
considered most efficient. The costs of
buying and selling weaners are eliminated
and disease problems greatly reduced.
Poor facilities and excessive work loads
can reduce efficiency, however many good
pigs are raised in simple, low cost set ups.
Depreciation is not a direct expense but
will at least partly cover cash outlay
required for repayment of principal on
depreciable items. Repayment of principal
on a mortgage of land is of course not
considered in cost of production. But since
the money often has to be raised, it has to
be considered when setting up cash flow
requirements.
Knowing one's cost. of production does
not make the pig cheque any bigger, but it
helps in making proper management
decisions.
Considering all available information
and looking at my own figures, I do not
think that an established operator with a
moderate debt Toad can get by on less than
$60. - to meet his financial obligations. A
newcomer with a higher cost of servicing
mortgages and loans probably needs
considerably more.
It is alarming to realize that young
farmers, who have the courage and
initiative to invest in the future of the
industry , find themselves under such
financial hardship as created by the
present low prices and high interest rates.
Swine research trip
A bus trip for producers and their
spouses has been' planned to visit the new
swine research facilities of the University
of Guelph at ArkeH.
Time: Wed. April 16, 10 a.m. to 5 p.m.
(Continued on Page 44)
McDONALD
BRUSSELS, ONT.
887-6277
Complete
Farm
Building
and
all
Farm
and
Household
Building
Needs.
McDONALD
Ad\
Brussels Ont.
887-6277
FREE DELIVERY
THE RURAL VOICE/APRIL 1980 PG 45