MARKETING
PIH-72
pork industry handbook
COOPERATIVE EXTENSION SERVICE • PURDUE UNIVERSITY • WEST LAFAYETTE, INDIANA
Feeder Pig Marketing Techniques
Authors
Richard Vilstrup, University of Wisconsin
Fred Giesler, University of Wisconsin
Vernon Leibbrandt, University of Wisconsin
Reviewers
Herbert Hadley, Ohio State University
Leland Warschefsky, Michigan State University
Feeder pig marketing is an important part of the swine industry. Dollar value of feeder pigs sold is estimated at over $700,000,000 per year. About 40% of all slaughtered hogs are produced on farms other than where they are farrowed. Feeder pigs are marketed locally and intra-state in the central part of the United States, with large volumes of feeder pigs being shipped from states on the fringe of the traditional Corn Belt to the major hog feeding areas.

Guidelines for Choosing a Market
Market day is payoff day for the feeder pig producer. Whether or not he makes money depends upon making intelligent market decisions.

Feeder pig producers have many outlets and markets for their product, depending upon location. Consider the following factors when selecting a market. A market outlet or selling agency should:
•	recognize and reward quality
•	offer reliable price and grading information
•	accurately grade and price hogs at a competitive market level
•	provide fair weighing conditions
•	weigh hogs on accurate, government-tested scales
•	select the best possible buyer on any given market day
•	provide necessary marketing services
•	guarantee prompt payment

Methods of Marketing Feeder Pigs
Feeder pigs are sold at a wide range of weights from early-weaned pigs to half-finished slaughter hogs. Feeder pigs are generally sold close to a standard weight of 40 lbs. with prices above 40 lbs. reflecting value of additional weight. Discounts are generally applied to lighter-weight pigs. Feeder pigs may be sold by the pound on a per head basis or by a forward pricing formula.
Feeder Pig Marketing Techniques
Methods of marketing feeder pigs vary by state and community. Techniques range from simple sale transfers of ownership between producer and feeder to highly sophisticated pooling systems using modern communications technology. The most common selling techniques include the following:

Feeder pig producer to neighbor or feeder. Producer advertises pigs in his community or sells regularly to a producer with feeding facilities. Price is mutually agreed upon, with the grade, weight and delivery negotiated. Market price obtained by producer depends upon knowledge of current price levels.

Producer to dealer. Feeder pig producer sells to a dealer who purchases pigs for resale at a margin or profit. Dealer assembles pigs in larger lots and sells them to producers who feed hogs for slaughter. Price asked by feeder pig producer depends upon his current knowledge of market and price conditions. Price charged to final purchaser reflects margin of dealer for cost of services and profit on the transaction.

Producer to cooperative—farm pick-up service. Feeder pig producer joins cooperative feeder pig association. He then contracts to have pigs picked up on his farm by a cooperative fieldman when pigs weigh 40 lbs. Pigs are sorted, graded and weighed at the farm by the fieldman. Pigs are hauled to an assembly point operated by the cooperative marketing agency. Pigs are pooled into large, uni-form-graded lots and sold to distant feeder buyers by salesmen using skilled selling techniques via the telephone. Cooperative salesmen sell pigs at the highest price possible, deducting the costs of selling and pickup. The feeder pig producer generally receives an average price computed from sales made by the cooperative the first two days of the week. Some cooperative organizations offer special premium incentives for quality and volume.
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, Ind. 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, religion, color, sex or national origin.