The Rural Voice, 2002-05, Page 28LOOKING UP
FOR THE
LITTLE GUY
It's management, not size, that
provides the profits in pork, speakers
say. Independent producers can have
a bright future without
having to get big.
Story by Keith Roulston
24 THE RURAL VOICE
/t's been a long time since the idea
that small could beautiful was
uttered at a farm meeting but
members of the Independent Ontario
Hog Producers Association were
showered with positives about their
situation when they gathered in
Exeter.
Three different speakers told the
producers they could be as efficient
as the big players in the industry, and
they brought the figures to prove it.
Dr. Tim Blackwell was at his
entertaining best as he delivered the
most up -beat address of an upbeat
meeting. Blackwell demolished
myths about pork production in a
Tight -hearted questionnaire, starting
with the idea that there are
economies of scale for Targe
producers.
After watching the hog industry
for years as OMAFRA's Swine
Veterinary Specialist, Blackwell said
"I've never seen the so-called
economy of scale."
For instance, he said, you can't
build a farrow to finish operation for
under $4500 to $5000 per sow
whether you're building a big barn or
not. With an eight per cent return on
investment that means $360 a year
return per sow place no matter what
size the operation. Labour will cost a
large operation at least $200 per sow
unit so it means an independent
producer can look at a return of $560
per sow place. (The assumption is
based on 22 pigs per sow per year, a
feed efficiency of 3.0 and a days to
market of 165 days: "If you're not
doing this, it's your fault.")
"Any big farm would be more
than happy to get that (return)"
Blackwell said. "I'd bet most of you
are making that and the big guys are
trying to."
The economies in raising pigs
come from management skills, not
from size, Blackwell said. There are
so many skills needed that it's hard
to train people. Independent
producers who have those skills can
make a good living.
Blackwell also demolished the
perception that swine farms are
getting bigger because they have to.
"Farms get bigger because they want
to get bigger," he said. "You're going
to make $500 a sow," he said, so how
many pigs you keep depends on how
much money you want to make. A