DEVELOPING THE PIG INDUSTRY

Taranaki Central Press, Volume IV, Issue 447, 1 June 1937, Page 2

DEVELOPING THE PIG INDUSTRY

HINTS TO FARMERS ON THE PRODUCTION OF GOOD LITTERS.

Department of Agriculture Notes by M. J. Scott, 8.A.,8.5c.

The Factor of Overhead Costs.

It Often happens that a man’s knowledge ot pig-keeping is an accunffilation of unfortunate experiences that tause him in the end to leave pigs alone. These experieiXes vre sometimes the result of wrong information, somtimejs of bad jmljrinenv but’Since judgment s usually just as poor as the information available on the point, then poor information can take the blame for most mistakes Costs in pig-keeping 'through not being reckoned with often upset calculations, and eventually upset balance sheets. Overhead Costs. For the purpose of this article overhead eoats will imlud' all cos’s other than the cost, of feed-supply. Based on a farm carrying pigs only, and on the assumption that one man with suitable equipment can attend to fifty sows producing mixed pork land bacon, the following costs might be insurred:—-i- ’ - 50- pigCapital expenditure. cow farm Eight acres land .... £l6O to £320 Forty s-llea or farrowing . pens 400 to 800 Fencing forty one-fifth acre sections or pens .c... 160 to 240 Water supply 40 to 80 Utensils, and equipment ..'... 30 to- --'IOO Motor-truck 200 to 300 Sows and boars .... 300 to 300 Totals. £129 to £2RO Annual Expenditure. Interest on capital at t 5 per cent £64 to '£lo7 Depreciation 39 to”- 66 Running expenses—truck 120 to" 180 Wages 150 to 200 Totals £373 to £563

Depreciation, has been charged aft 10 per cent, on motor-truck, and at 3 per cent on buildings and equipment Thus latter may be slightly greater than the standard rate, but it looks very conservative for pig equipment. Five per cent, would probably be nearer the mark. No depreciation hat been charged on livestock for the reasons that a copper may be sold for the same price as a haconer.'Siaftd that breeding stock may be Ijept up to strength by retaining the best so vs when these have attained bacon weights. Running expenses for the motor-truck have been charged a only six-pence per mile, because depreciation and interest are already charged under other headings Overhead as a Percentage of Total Returns. Overhead costs arc often, quoted by English writers at 20 per cent, of total turnover, and it is often wrongly assumed that this figure is a standard that does not vary. It will be appreciated that since overhead costs are moreor-less constant on any farm, and since the totUl return varies with the price received for pig.meats, then the percentage that overhead is of the total return must vary also. In the statement set out above, overhead costs at £373 for 50 cows amount to £7/10/0 per sow. The

’ return from a tow producing 1,200 pounds ot pig-meats at 3d per lb. is £ls, land overheads are then 50 per ■ cent. At 5d per lb. for pork, over--1 heads are 174 per cent. This lower | percentage seems to reflect the coniditions that make overhead costs 20 per cent, in England. Overheads on a per Pig Basis. The Re.organisation Commission for Pigs and Pig Products in Great Britain in 1932, in attempts to decide upon a price formula agreed thlat the overhead costs at 10/- up do weaning stage, and 10/_ from wean.ng to slaughter, i.e., a total of 20/- per pig slaughtered, wer> a fair allowance. Overhead costs at this level with NewZealand prices lor pig.meits, would make pig-keeping very difficult, except where food costs are very low as with butter-milk supplies’. At £7/10/0 per sow, based on one that rears 12 pigs per year,, the overhead per pig is 12/6. If pigs attain an average slaughter weight of 10(1 lbs. at 150 days old, the overhead cost per pig per week works out at seveftpence (la penny a day). This sevenpence as made up as follows: Wages .... 2.80 pence pig per week Interest ... 1.10 Depreciation 073 ” ” ” ’’ Running expenses— Truck .. 2.24 " ” ’* ” dtj may not be inapt to stress tlie amount that goes out in transport charges. In all, transport costs in the above amount to £l5O, o'r (about 5/- per pig. This may be a large or a small amount on any particular place, but in the wrter's observations the convenience of a motor-truck is often valued l unduly compared with the average of better houses. Increase Overhead and Avoid Disease Losses. In the past too many have kept piga on that piece of waste land that could be used for nothing else, with a minimum of shelter and no conveniences. They have surprised themselves and everyone at the wonderful successes that have been obtained. Wjdj better conveniences these c.,n be improved upon. There ere ,- ar , oo many ot O ur pigs suffering from the effects of long with mud, a thing that can be eliminated entirely by better houses. Good housing can be reduce the 20 per cent of blemished pigs down 'to less than 1 Per cent. ?

A capital outlay of from twentyfive to forty pounds,per sow provides acuities that remove the drudgery rom pig-keeping, allows 'them to be kept clean,, and by reducing disas losses enables an increased profit to be made. Capital spent in equipment “ worth while; in tact }t is ly a profit-earning investment.