As lower hog prices and higher feed costs cut into pork producer margins, now is the time to review market weight strategies. John Lawrence, Iowa State University Extension livestock economist, is offering producers a calculator to assist producers in examining the issue closely.
“While there often is a call for all producers to reduce weight to reduce supply, the real issue is what works for the individual. If you are still marketing at the same weight that you did when corn was $2 a bushel and live hogs were near $60, it’s time to re-evaluate your decision," he advises.
The most profitable weight at which to sell is when the additional cost of the next pound is equal to the revenue of that pound, and prices of feed and hogs have changed. The concept is simple, but it’s more complicated in practice, says Lawrence. The cost of adding weight changes with feed prices, and additional weight can impact the lean premium and sort loss.
"We’ve developed some examples for producers to look at and also offer a spreadsheet calculator to help people work out what’s best for their operation," he said.
Additional information and two versions of a spreadsheet calculator are available at www.Iowa Pork Industry Centre.
Source: ThePigSite News Desk