By Casey Zangaro
Setting a price for direct-market pork can be more complicated than it first appears. Producers need to account for the cost of the pig, feed, labor, facilities, transportation, processing and other expenses while also determining how much profit is needed to make raising pigs worthwhile.
The new MSU Extension Pork Pricing Calculator was developed to help producers organize costs and make informed pricing decisions for their farm management.
It can be tempting to set prices based on what another producer charges or what pork costs at the grocery store. While those prices are useful for comparison, they do not tell you what it costs to raise and market pork on your farm. Feed prices, processing costs, labor and production practices can vary considerably between operations.
Start with production costs
The calculator lets producers enter costs such as feeder pigs, feed, bedding and utilities, animal health, transportation, labor, facilities and other production expenses. Labor and facility costs can be easy to overlook, particularly on small farms, but both are part of the true cost of raising a pig.
The workbook also includes a Production Model and Feed-Cost Planning section to help producers think through production arrangements and estimate feed costs. This section connects with MSU Extension Bulletin E-3506, Models for Raising Pigs for Pork.
Source : msu.edu