October 2024 - Journal F e - Flipbook - Page 14
Business
MAXIMIZING PROFIT
How Managing Market Weight Variations Boosts your Bottom Line
Alex Kremer
Market Sales Manager
FarmPro, Pipestone Business
Born and raised in Southwest Minnesota, Alex Kremer discovered
his passion for agriculture at an early age. He earned his degree in
Agricultural Sciences from South Dakota State University and joined the
FarmPro team in 2017. As Market Sales Manager, Alex helps farmers
navigate and optimize market selection.
As pig farmers, we know that every stage of
production, from breeding to 昀椀nishing, is crucial.
But even when we’ve done everything right up until
the last few weeks, there’s still a lot of money on the
table when it comes to marketing your pigs. This 昀椀nal
phase—selling your pigs at the right weight and the
right time—can make or break your bottom line. By
paying attention to the Coef昀椀cient of Variation (CV) and
how you sort your pigs, you can turn what might seem
like small adjustments into big 昀椀nancial gains.
Understanding CV and Why It Matters
You’ve probably heard terms like CV and sort loss
thrown around when looking at your kill sheet. But
what do they really mean, and how do they affect your
pro昀椀t?
• Standard deviation measures the range of pig
weights in your group, from the lightest to the heaviest.
• CV (Coef昀椀cient of Variation) takes that standard
deviation and divides it by the average weight of the
pigs. This gives you a percentage that tells you how
consistent your pigs are in size.
The lower your CV, the more uniform your pigs
are. Packers want uniformity because it keeps their
processing plants running ef昀椀ciently. When pigs come
in at the right weight, packers reward you. But if your
pigs are too heavy or too light, you face penalties,
which is where sort loss comes into play.
What’s a Good CV?
If you don’t sort your pigs and just let them go to
market at random (what we call a “gate cut”), you
could end up with a CV as high as 12%. On the 昀氀ip
side, if you take the time to sort carefully, you can get
that CV down to 5%, which is considered excellent. The
average for farmers we work with sits at around 7%.
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Here’s the kicker: moving from a 10% CV to the
average 7% can save you about $5 per pig. For
a barn of 2,400 pigs, that’s an extra $12,000. Going
from 7% to 5% CV might net you another dollar per
pig. While the returns diminish as your CV gets tighter,
those small margins can still add up.
How to Improve Your CV and Reduce Sort Loss
So how do you make sure your pigs hit that sweet
spot for weight?
1) Have a Plan: Before you go into the barn,
know how many pigs you want to sort for each load.
Don’t just focus on a few pens—spread your selection
evenly across the barn to avoid large weight variations.
2) Watch the Numbers: Pay attention to feed
consumption and days on feed. This can give you an
idea of when your pigs are ready to hit that target
weight.
3) Use Tools if Available: If your barn has
scales, use them to 昀椀ne-tune your sorting process.
However, make sure the setup doesn’t interfere with
the pigs’ access to feed, as this can slow down their
growth.
4) Keep an Eye on Health: Health issues can
create signi昀椀cant variation in weight. A healthier group
of pigs will naturally have less variation, making it easier
to hit that ideal CV.
5) Plan for the Last Load: The last load out of
the barn is often where variation spikes because you’re
left with the lightest and slowest-growing pigs. Sorting
carefully here or sending these pigs to a different
packer or market can help minimize losses.
Why the Packers Care About Consistency
Packers run a high-speed operation, and for them to
maintain ef昀椀ciency, they need pigs that are as uniform
as possible. The closer your pigs are to their target
