PRODUCTION SYSTEMS
PIH-49
pork industry handbook
COOPERATIVE EXTENSION SERVICE • PURDUE UNIVERSITY • WEST LAFAYETTE, INDIANA
Pork Production Systems with Business Analyses Determining Capital Requirements
Authors
David H. Bache, Purdue University
James R. Foster, Purdue University
Reviewers
David Spruill, North Carolina State University
Clyde Weathers, North Carolina State University
Where to Start in Determining Capital Requirements
Table 1 presents the approximate non-land costs for starting up each of eight common hog systems. These figures are a starting point to give you an idea of the investment requirements for pork production.

For instance, the table shows that it takes about $1,510 for each productive sow in the breeding herd to establish a modern farrow-to-finish enterprise on an existing farm. Assuming 15 market hogs annually from each sow unit, investment per pig produced per year would be $101 ($1,510-15).

However, the data in Table 1 are based on assumptions that may be vastly different from your situation. For example, building and equipment costs shown assume starting the hog enterprise from "scratch" on bare land. But this is rarely the case. Typically, a producer already has some components of a production plant. Therefore, the cost of "getting started" usually involves acquisition, replacement or repair of selected items, rather than construction or purchase of a complete set of facilities.

Costs of buildings, equipment and breeding stock can also vary significantly from one producer to another, because of differences in their bargaining power and/or ability to perform contracting and building functions. Also, prices vary widely from one location to another and from one time to another.

Capital Requirements for Buildings and Equipment
In developing your own cost estimate for buildings and equipment, you need to determine two things: (1) how many animals must be accommodated at the time of peak demand, and how much space needs to be allotted to
each; and (2) what is the per animal or per square foot cost for the facilities you want to provide?

Determining Number of Animals at Peak Demand
Usually, specialized buildings are used to house swine during each phase of the life cycle (e.g., farrowing, nursery, growing, etc.). Since the length of each phase differs, efficient building utilization calls for both buildings of different capacities and the practice of multiple farrowing. Although the periods will vary from operator to operator, it is rather commonly accepted that a pig developing from birth to market requires housing in a farrowing unit for 4 or 5 weeks, in a nursery unit for 4 or 5 weeks, and in a growingfinishing unit for approximately 17 weeks. Following are some rules-of-thumb for determining number of animals to be housed in the various kinds of quarters, and an explanation of each rule.

Farrowing Quarters. Rule: Determine the number of sows that will be farrowed In the "busiest" 8 weeks (most intensive farrowing period), and provide farrowing space for that number.

For disease control, many producers plan for 1 week between farrowings when the farrowing house is depopulated and cleaned. A typical farrowing period is 3 weeks from the time the first litter is born until the last. If 4 weeks is set as the minimum age at which a litter will be removed from the farrowing quarters, this means an 8-week commitment for each group of sows (including the 1 -week cleaning period).

A producer can go to 6 equally spaced uses of the farrowing house per year without running into scheduling problems. At this use level, he needs to supply 1 farrowing space (approximately 35 sq. ft.) for each 3 sows in the breeding herd. (Or to say it another way, 1 farrowing house can service 3 groups of sows.)
Cooperative Extension Work in Agriculture and Home Economics, State of Indiana, Purdue University and U. S. Department of Agriculture Cooperating. H. G. Diesslin, Director, West Lafayette, IN. Issued in furtherance of the Acts of May 8 and June 30, 1914. It is the policy of the Cooperative Extension Service of Purdue University that all persons shall have equal opportunity and access to its programs and facilities without regard to race, color, sex, religion, national origin, age or handicap.