1. PIG PRODUCTION

2. Why pigs? For the gals-they don’t turn into men when they get drunk For the gals-they don’t turn into men when they get drunk For the fellas-they have at least 6 pairs of mammary glands For the fellas-they have at least 6 pairs of mammary glands They don’t kick or scratch They don’t kick or scratch Many opportunities for the “style” of employment Many opportunities for the “style” of employment The pay is pretty good The pay is pretty good Pigs are the major red meat consumed world-wide (43%) Pigs are the major red meat consumed world-wide (43%) Diversification-welfare, economics, nutrition, engineering, public health Diversification-welfare, economics, nutrition, engineering, public health Career opportunities-they will take you around the world! Career opportunities-they will take you around the world!

3. Why not pigs? They smell and bite They smell and bite You may not feel confident at graduation You may not feel confident at graduation You may want to live in the city You may want to live in the city You may like one-on-one consulting You may like one-on-one consulting You may like surgery You may like surgery The Australian industry has its ups and downs The Australian industry has its ups and downs You will have to become a strong welfare advocate You will have to become a strong welfare advocate You may have to travel a lot You may have to travel a lot

4. What will you need to know to survive in the pig industry? Problem-solve: high pork production costs (cents/kg carcass weight). high pork production costs (cents/kg carcass weight). poor reproductive performance (pigs weaned/sow/year). poor reproductive performance (pigs weaned/sow/year). poor growth performance (growth rate, mortality, feed efficiency). poor growth performance (growth rate, mortality, feed efficiency).

5. What happens on the pig farm? Herd profitability Volume (Kg meat) Cost of production (c/kg) Breeding herd efficiency Growing herd efficiency healthnutritionmanagementgeneticsenvironment

6. The structure of the Australian pig industry 26 th in the world 26 th in the world 364Kt Carcass Weight vs China 41,600Kt 364Kt Carcass Weight vs China 41,600Kt Average slaughter weight increasing Average slaughter weight increasing 55kg in 1980 … 75kg in 2006 55kg in 1980 … 75kg in 2006 Import mainly from USA, Canada and Denmark Import mainly from USA, Canada and Denmark Export to Japan, Singapore and NZ Export to Japan, Singapore and NZ We eat 18.8kg pig meat per head We eat 18.8kg pig meat per head Ranked 23 rd in the world Ranked 23 rd in the world Vs 77kg in Denmark Vs 77kg in Denmark

7. Per capita consumption of pork-selected countries- calender year 2000 (from PigStats, 2002)

9. 28% 22% 15% 12%1% The Aussie Pig Industry

10. The Aussie pig industry Number of pig producers is decreasing Number of pig producers is decreasing 49,537 in ’60……2,914 in ’01

11. Average herd size is increasing (’79=16 sows…’99=101 sows)

12. Fate of Pig meat in Australia 10/10/04 Pig meat consumed in Australia. Includes imported pork which makes up 70% of processed pork Fresh porkProcessed pork (40%) (60%) Butchers Supermarkets Ham Bacon Other Pork (22%) (60%) (35%) (40%) (25%) Other fresh (18%)

13. Overseas markets & how they impact us

14. Recent challenges for the Australian industry Low prices Low prices High Aussie dollar hindering exports High Aussie dollar hindering exports Price competition from imports Price competition from imports High feed grain prices (drought) High feed grain prices (drought)

16. We import pig meat from:

17. What type of meat is imported?

18. We export pig meat to:

19. We export pig meat as:

20. How production efficiency and volume are measured in pig herds and what impacts on these parameters

21. The production system Breeding - about 1 week after weaning Breeding - about 1 week after weaning Natural mating +/- AI Natural mating +/- AI Gestation - about 16 weeks Gestation - about 16 weeks Stalls, pens Stalls, pens Farrowing / lactation – 3 to 5 weeks Farrowing / lactation – 3 to 5 weeks Weaner - 3-10 weeks Weaner - 3-10 weeks Grower/finisher - 10-25 weeks Grower/finisher - 10-25 weeks

22. Keys to success: Contain costs Meet mating targets Fill sheds Sell at heavy weights Use feed efficiently (no wastage) Optimise health and genetics

23. Costs of Production - examples Average ($/kg Carcass WT) Feed1.20 Labour (paid)0.18 Other costs0.21 Total operating costs1.59 Capital costs 0.20 Owners labour0.21 Total costs2.00 Range: $1.30 > $2.35/kg carcass weight

25. What determines prices? Seasonal Seasonal Imports Imports Export demand (25% pork exported) Export demand (25% pork exported) Profit is driven by the cost of feed and pig meat price

26. Breeding herd Growing herd Pigs weaned/litter Litters/sow/ yr Kg meat sold/m 2 floor space Pigs weaned per sow per year No. pigs/m 2 floor space Kg/pig Physical herd performance

27. Physical performance-efficiency targets: Litters/sow/year: 2.27 Litters/sow/year: 2.27 Born alive per litter: 11 Born alive per litter: 11 Herd liveweight feed conversion efficiency 3:1 Herd liveweight feed conversion efficiency 3:1 Growth rate: 600g/d Growth rate: 600g/d Deaths (10% piglets, 2% weaners, 1% growers) Deaths (10% piglets, 2% weaners, 1% growers)

28. Physical performance-actuals Breeding herd

29. Physical performance Breeding herd

31. Housing types Indoors Indoors Improved feed efficiency Improved feed efficiency Reduced labour costs Reduced labour costs Outdoors Outdoors Lower capital costs Lower capital costs Perceived as welfare friendly Perceived as welfare friendly In-between In-between bedded systems / ecoshelters bedded systems / ecoshelters

32. Buildings: Capital cost high Operating cost low Capital cost low Operating cost high Straw based “ecoshelter” Conventional shed

34. Intensive farming

36. Bedded systems Especially for progeny (weaners) Especially for progeny (weaners) Estimates 30% in Australia Estimates 30% in Australia Some breeding herds Some breeding herds Chiefly in response to welfare Chiefly in response to welfare

37. Bedded systems (cont.) Cost one half/third of traditional sheds Cost one half/third of traditional sheds No internal penning No internal penning Perceived as welfare-friendly Perceived as welfare-friendly Helps in the transition to multi-site, AIAO, Split-sex feeding, phase feeding Helps in the transition to multi-site, AIAO, Split-sex feeding, phase feeding On-going costs higher (bedding + labour) On-going costs higher (bedding + labour) Higher feed intakes and increase in backfat Higher feed intakes and increase in backfat

43. Systems of raising pigs Family farms Family farms Corporate farms Corporate farms Contracting – breeder and grower contracting Contracting – breeder and grower contracting

44. Contracting Shares production & financial risks Shares production & financial risks Contractor provides land, sheds, labour Contractor provides land, sheds, labour Company provides pigs, feed, transport, medication, technical advice, assists in permits etc Company provides pigs, feed, transport, medication, technical advice, assists in permits etc Allows for expansion with minimal capital Allows for expansion with minimal capital Stable income for farmer (returns are not market-driven) Stable income for farmer (returns are not market-driven)