Top Banner
Marketing Strategies Dr Mike Brumm – Brumm Swine Consultancy Inc. Introduction to space and marketing Dr Josh Flohr – Nutriquest Estimating the impact of floor space allowance on late finishing pig performance Dr Kyle Coble, New Fashion Pork How we implement marketing
17

Dr. Mike Brumm - Introduction to Production Marketing

Jan 12, 2017

Download

Marketing

John Blue
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Dr. Mike Brumm - Introduction to Production Marketing

Marketing Strategies Dr Mike Brumm – Brumm Swine

Consultancy Inc.◦ Introduction to space and marketing

Dr Josh Flohr – Nutriquest◦ Estimating the impact of floor space allowance

on late finishing pig performance

Dr Kyle Coble, New Fashion Pork◦ How we implement marketing

Page 2: Dr. Mike Brumm - Introduction to Production Marketing

Marketing Strategies

Marketing decision involves cost of space, incremental cost of gain, payment grid and transportation load size

Page 3: Dr. Mike Brumm - Introduction to Production Marketing

Cost of Space New Nurseries - $200+/space◦ 3.25 sqft outside dimensions

Wean-fin - $325 ($225-230 ++++)◦ 7.5-7.8 sqft/pig outside dimensions (51 x 192 =

1250 pigs)

Contract fees ($/space/yr)◦ Nursery - $32 but now up to $36◦ Grow-fin - $36 but have heard of $40◦ Wean-Fin - $40-42 and some $44

Page 4: Dr. Mike Brumm - Introduction to Production Marketing

Space Management Shows up in Slaughter Data (i.e. sales decisions)

2014 2015 2015

Carcass wt vs Monday wt, lbPacker owned vs

Producer soldMonday 4.9Tuesday 0.09 0.09 5.0Wednesday 1.05 0.70 5.2Thursday 1.41 1.31 4.6Friday 2.38 1.99 5.0

LM_HG201National Daily Direct Hog Prior Day Report

Page 5: Dr. Mike Brumm - Introduction to Production Marketing

More Pigs and Bigger Pigs

USDA Agricultural Statistics Annual

y = 1030.6x + 69763R² = 0.8943

y = 1.2988x + 157.97R² = 0.9847

150

160

170

180

190

200

210

220

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

000

hd

Federally Inspected Barrow & Gilt Slaughter

No. Hd Carcass Wt Linear (No. Hd) Linear (Carcass Wt)

100

95.3

72.6

77.1

90.7

86.2

81.6

KgLbCarcass wt

Page 6: Dr. Mike Brumm - Introduction to Production Marketing

250

255

260

265

270

275

280

285

290

1 5 9 13 17 21 25 29 33 37 41 45 49 53Wk of Year

Iowa/SMinn Live Weight at Slaughter

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Jun 1 Sept 1NW_LS720

WtKg Lb

131.5

129.3

127.0

124.7

122.5

120.2

117.9

115.7

Page 7: Dr. Mike Brumm - Introduction to Production Marketing

Expressing space as a function of Bodyweight

Allometric equation for floor space allowance

Area = k * BW2/3

k = Area / BW2/3

Courtesy Dr. Harold Gonyou, Prairie Swine Centre

Page 8: Dr. Mike Brumm - Introduction to Production Marketing

84%

88%

92%

96%

100%

104%

0.020 0.022 0.024 0.026 0.028 0.030 0.032 0.034 0.036 0.038 0.040 0.042 0.044 0.046 0.048 0.050

AD

G %

of C

ontr

ol

'k'

ADG Response to 'k' full slats constant group size - metric

0.03360.0340

Gonyou et al, 2006

Page 9: Dr. Mike Brumm - Introduction to Production Marketing

0.0336

Gonyou et al 2006

Page 10: Dr. Mike Brumm - Introduction to Production Marketing

0.0358

Gonyou et al 2006

Page 11: Dr. Mike Brumm - Introduction to Production Marketing

Critical Space (full slats) at ‘k’=

kg m2/pig lb ft2/pig

100 0.725 220 7.83

109.1 0.768 240 8.29

120.5 0.821 265 8.89

127 0.860 280 9.28

134 0.892 295 9.61

0.21450.0336

Page 12: Dr. Mike Brumm - Introduction to Production Marketing

123 kg, 0.58 m2

k = 0.024

270 lb, 6.3 ft2

k = 0.153

Page 13: Dr. Mike Brumm - Introduction to Production Marketing

270 lb, 8.0 ft2

k = 0.030

123 kg, 0.74 m2

k = 0.191

Page 14: Dr. Mike Brumm - Introduction to Production Marketing

102 kg 0.76 m2/pig 225 lb 8.2 ft2/pig

k = 0.035 k = 0.223

Page 15: Dr. Mike Brumm - Introduction to Production Marketing

For each 3% change in space, daily gain and daily feed intake change

1.0%for full slats.

There is no predictable impact of space allocation on feed/gain.

Page 16: Dr. Mike Brumm - Introduction to Production Marketing

Impact of Space on ADGFull slats

WtLb (kg)

Adequateft2 (m2)

@ 7.2 ft2 (0.67 m2)Reduction in ADG

50 (22.7) 2.9 (0.27)

225 (102.3) 8.0 (0.74) 3.3%250 (113.6) 8.5 (0.79) 5.0%275 (125.0) 9.2 (0.85) 7.2%300 (136.4) 9.7 (0.90) 8.6%

Page 17: Dr. Mike Brumm - Introduction to Production Marketing

Next Speakers

Can we manipulate the response to space by using alternate marketing strategies?

How one system makes its marketing decisions (what pigs on what loads).