The Rural Voice, 1987-12, Page 59ADVICE
you have probably begun to jump to the
following conclusions:
• wean at 10-18 days,
• record with MLC,
• use RHM feed (if it were still
available),
• adopt the system operated at
Deansgrove,
• acquire a royal connection,
• send sons to ecclesiastical college,
• pray.
All joking aside, my point is that these
records are missing one key ingredient.
We have no indication from these rec-
ords whether any of these operations are
making any money.
Let's define our terms. Profit is the
difference between revenue and costs,
both fixed and variable, plus or minus
for changes in accounts receivable,
payable, and inventory. Gross margins
are simply the difference between out-
put and variable costs. When we make
comparisons based on gross margin, we
are assuming fixed costs to be the same
on different farms. If you are going to
compare yourself with others, a better
benchmark is profit.
First, assess the resources at your
disposal:
• capital — the amount available, the
degree of borrowing,
• buildings — their condition, capac-
ity, and depreciation,
• labour — the quality and cost,
• stock — the genetic merit and the
disease status.
Having established the limitations of
your system you can establish the fixed
and variable costs that the unit has to
carry. The break-even point of the unit
can then be determined either in terms of
tonnes dead-weight of pork or number
of weaners that have to be sold. When
your break-even point is defined, targets
can be set to ensure that the point is met
and a profit is achieved. The target fig-
ures that must be recorded weekly are:
• sows mated,
• sows farrowed,
• pigs born,
• pigs weaned,
• pigs sold.
These targets can be subdivided too
— the more information, the easier it is
to diagnose problems and to modify
management strategy.0
Robert Fraser
Pork Advisor, Perth
GIFT
SUGGESTION
Farm Books
A wide selection featuring
Modern & Antique Tractors,
Gisele Ireland, Draft Horses
and many more.
We wish you a Merry Christmas
and all the goodwill that the season
brings. Thank you for your
patronage. We look forward to working
with you in the future.
JIM HARKNESS
EQUIPMENT LTD.
• agricultural, lawn & garden equipment
• grain storage & handling equipment
• Steiner Tractors
Hwy. 9 W. Harriston
519-338-3946
NORTH
AMERICA
STEEL BUILDING
FALL
CLEAROUT
Quality Steel Buildings
Must Be Sold
2-40' x 60'
1-28 x 40'
1-35 x 50'
Take delivery now
and SAVE 25%
North America
Steel Buildings Corp.
Call Toll Free
1-800-387-2380
SMYTH
SNOWBLOWERS
CLEAR THE WAY
WHEN YOU'VE JUST GOT
TO GET THROUGH
To you & yours we extend our
sincerest wishes for the Merriest
Christmas ever and Happiness
throughout the New Year.
Thank you for your
patronage
Models from 56" to 9'
George Smyth Welding
And Machine Shop
R.R. #2, AUBURN, ONTARIO NOM 1E0
519-529-7212
DECEMBER 1987 57