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The Rural Voice, 2002-02, Page 49PERTH 1!T County Pork Producers NEWSLETTER Jim Van Herk, President 519-595-4863 • The Rural Voice is provided to Perth County Pork Producers by the PCPPA. What is the value of a boar? Any opinions expressed herein may not necessarily reflect the views of the Perth County Pork Producers' Association. We have very good pork producers in this province both large and small and, especially after 1998, only the good producers remain. I take my hat off to these people. One area does puzzle me though. As a breeder, it is always interesting to see how boars are selected. Quite often it is price that is the deciding factor on which a boar is purchased. (Fortunately this is by only the minority.) While this may be a wise approach generally, I think purchasing the best boar is one of the easiest ways for people to improve on the profitability of their farm. Most breeding stock suppliers have a sliding scale of prices for boars with lower performance boars selling at a lower price and higher performance boars selling at a higher price. Depending on where you buy your stock there could be $500 to $1,000 difference between bottom and top end boars. Most purchasing decisions are made on boars that are $100 to $300 apart because producers tend to buy within a predetermined price range. I would like to lay out why you should consider the best boar and why the cheaper boars may not be the deal you think. Assumptions: The Canadian Centre for Swine Improvement (CCSI) in Ottawa has estimated that it takes 0.89 kg. less feed for every day faster to market and that it takes 1.06 kg. Tess feed for every 1 mm reduction in fat. CCSI also argues that for every one per cent increase in lean yield there is an increase of $2.55 in carcass value. (For this example I will use 1 index point/%lean = $1.50.) CCSI has also estimated that every day faster to market frees up barn space to have more throughput and results in a savings estimate of $0.30 per day. For easy calculations, we will use $200/tonne feed or $0.20 per kg. I will be basing the performance differences on Estimated Breeding Values (EBV's) which are recognized as the best measure of a pig's genetic value. These compare the pig to the genetic value of the current breed average within the Canadian system. Let's compare the following boars: Boar A: takes off 1.4 mm of fat (EBV -1.4) Grows 5 days faster (EBV -5.0) Adds 0.9% lean (EBV +0.9) Selling price $882.00 Boar B: adds 0.1mm (EBV+0.1) Grows 1.5 days faster (EBV -1.5) Adds 0.1% lean (EBV+0.1) Selling price $672.00 The following performance differences can be calculated: Boar A's genetics are: 5.0 days - 1.5 days = 3.5 days faster, -1.4mm- +0.lmm = 1.5mm leaner, 0.9% -0.1%=0.8% higher in lean yield than Boar B. Those differences translate into the following dollars: Feed savings 3.5 days x .89 kg. = 3.12 kg. Feed/hog 1.5mm x 1.06kg. = 1.59kg. feed/hog = 4.71 kg. feed/hog @ $0.20/kg. = $0.94/hog Space savings 3.5 days x $0.30 = $1.05/hog Added carcass value 0.8% lean x one index point ($1.50) = $1.20 Add these up to ($0.94 + $1.05 + $1.20) and you get $3.19/hog savings or extra revenue. This will vary according to your grid and does not even include the loin premiums offered. Let's assume that the number of hogs a boar produces in its lifetime is 1,000 (conservatively). $3.19 times 1,000 equals $3.190. However. the boar only contributes half of the genetics to the market hog so the real extra value is one half that or $1,595 not counting loin premiums. The extra that this boar cost initially is $210 plus two years interest of $25.20 for a total of $235.20. $1595 less $235.20 is $1359.80 more in your pocket. To me this is some of the easiest money you can make. There may be a few exceptions to this but generally, the returns versus the extra costs are dramatic. Use your own numbers and add it up. If you collect on farm of course price does not even' enter into the equation. In my opinion, cheap boars are too expensive and expensive boars are too cheap!O - Submitted by Joe Kolkman PERTH COUNTY PORK PRODUCERS' PORK PRODUCTS • Smoked Pork Chops • Fresh Pork Chops • Stuffed Loin Chops • Smoked Sausage • Smoked Cheddar Sausage • Bacon Burgers • Teriyaki Pork Steaks • Vittorio's BBQ Sauce. AVAILABLE FROM: Steve Hulshof (Kinkora) 348-8167 Martin van Bakel (Dublin) 345-2666 Walter Bosch (Monkton) 356-9000 Ted Keller (Mitchell) 348-9836 FEBRUARY 2002 45