Description, evaluation, and validation of the Teagasc Pig Production Model1

Economic and financial viability of a pig farm in central semi-tropical Mexico: 2022-2026 prospective

To estimate the economic and financial viability of a pig farm in central sub-tropical Mexico within a 5-year planning horizon, a Monte Carlo simulation model was utilized. Net returns were projected using simulated values for the distribution of input and product processes, establishing 2021 as base scenario. A stochastic modelling approach was employed to determine the economic and financial outlook. The findings reveal a panorama of economic and financial viability. Net income increased by 555%, return on assets rose from 3.36% in 2022 to 11.34% in 2026, and the probability of decapitalization dropped from 58% to 13%, respectively in the aforesaid periods. Similarly, the probability of obtaining negative net income decreased from 40% in 2022 to 18% in 2026. The technological, productive, and economic management of the production unit allowed for a favorable scenario within the planning horizon. There is a growing interest in predicting the economic sectors worth investing in and supporting, considering their economic and development performance. This research offers both methodological and scientific evidence to demonstrate the feasibility of establishing a planning schedule and validating the suitability of the pork sector for public investment and support.

Investigating How Genetic Merit and Country of Origin Impact the Profitability of Grass-Based Sheep Production Systems

The objective of this study was to simulate and assess the profitability of sheep production systems that varied in maternal genetic merit (high or low) and country of origin (New Zealand (NZ) or Ireland), using the Teagasc Lamb Production Model (TLPM). A production system study performed at Teagasc Athenry, Co. Galway, Ireland, from 2016 to 2019, inclusive, provided key animal performance input parameters, which were compared across three scenarios: high maternal genetic merit NZ (NZ), high maternal genetic merit Irish (High Irish) and low maternal genetic merit Irish (Low Irish). Prior to the beginning of the study ewes and rams were imported from New Zealand to Ireland in order to compare animals within the same management system. Ewes were selected based on the respective national maternal genetic indexes; i.e., either the New Zealand Maternal Worth (NZ group) or the €uro-star Replacement index (Irish groups). The TLPM was designed to simulate the impact of changes in physical and technical outputs (such as number of lambs, drafting rates and replacement rates) on a range of economic parameters including variable costs, fixed costs, gross margin and net profit. Results showed that total farm costs (variable and fixed) were similar across the three scenarios, driven by the similar number of ewes in each scenario. The number of lambs produced and the cost of production per lamb was 14.05 lambs per hectare for the NZ scenario at a cost of EUR 82.35 per lamb, 11.40 lambs per hectare for the High Irish scenario at a cost of EUR 101.42 per lamb and 11.00 lambs per hectare for the Low Irish scenario at a cost of EUR 105.72 per lamb. The net profit of the three scenarios was EUR 514, EUR 299, and EUR 258 per hectare, for the NZ, High Irish and Low Irish scenarios, respectively. Overall, the NZ scenario had a lower cost of production in comparison to either Irish group, while the High Irish scenario had a 14% greater net profit than the Low Irish scenario, equating to an additional EUR 41 per hectare net profit. Output from this simulation model reiterates the importance, for overall farm profitability, of maximising the number of lambs weaned per hectare, particularly through maximising income and diluting the total farm costs. To conclude, the use of high-maternal-genetic-merit animals, regardless of their country of origin impacts farm profitability.

Freedom to Grow: Improving Sow Welfare also Benefits Piglets

Piglet mortality, especially due to crushing, is a concern in pig production. While current systems use farrowing crates to reduce mortality, they present major animal welfare problems for the sow. This study investigated the effects of free lactation farrowing accommodation on the welfare of piglets born and reared in such accommodation when compared with conventional farrowing crates. Piglets were born to sows in one of two farrowing accommodation treatments and followed from birth to slaughter. Treatments were conventional farrowing crates (control, n = 24 litters) and free lactation pens, which were larger and allowed the sow freedom of movement both pre and post farrowing, (free, n = 22 litters) (675 total piglets). Individual weights were recorded from birth to slaughter. Hoof score was recorded at weaning. Behaviour was recorded during lactation and during the weaner stage. Pre-weaning percentage mortality was equal in treatments (free = 15.95 ± 2.31, control = 14.42 ± 2.15, p = 0.61). Final weight was influenced by treatment (p < 0.05) with pigs from free lactation pens significantly heavier at 114.73 kg compared to 110.82 kg for control pigs. Free pigs took fewer days than control pigs to reach the target weight of 105 kg (147.6 vs. 149.23 days). Throughout lactation, fewer instances of damaging behaviour (ear and tail biting) were observed in free pigs (p = 0.07). Improved growth rates and a decrease in damaging behaviours provide evidence to suggest that pigs from free lactation pens experience improved welfare when compared with control pigs.

Severe tail lesions in finisher pigs are associated with reduction in annual profit in farrow-to-finish pig farms

OBJECTIVES

We investigated the financial impact of different prevalence levels of severe tail lesions (STL) during the finisher stage associated with changes in average daily gain (ADG) in farrow-to-finish pig farms.

METHODS

Prevalence of STL was estimated for 31 farrow-to-finish pig farms. Regression tree analysis was used to identify a threshold for STL associated with differences in ADG. Then, a financial analysis was carried using the Teagasc Pig Production model.

RESULTS

A threshold of ≥0.86% prevalence of STL was associated with a 4.8% decrease in ADG which translated into pigs requiring 7 days more to reach target slaughter weight than in farms below the threshold. Reduced ADG meant that farms with higher prevalence of STL used 3.6% more weaner and 1.4% more finisher feed per year increasing feed costs by 1.5%. This reduced mean annual farm profit by 15.1% in farms with higher prevalence of STL.

CONCLUSIONS

Our results provide an indication of the financial effects of STL in intensive pig production systems. The identified threshold for the prevalence of STL could provide a tangible target for farmers to focus on in developing strategies to reduce tail lesions and allow farmers to complete a cost benefit analysis of controlling STL.

A bio-economic simulation study on the association between key performance indicators and pluck lesions in Irish farrow-to-finish pig farms

Background

Pluck lesions are associated with decreased performance in grower-finisher pigs, but their economic impact needs to be further investigated. This study aimed to identify the main pluck lesions and the cut-off value for their prevalence, associated with changes in average daily gain (ADG) during the wean-to-finish period, to simulate their effects on economic performance of farrow-to-finish farms. Pigs (n = 162 ± 51.9 per farm) from 56 farrow-to-finish farms were inspected at slaughter and the prevalence of enzootic pneumonia-like lesions, pleurisy, lung scars, abscesses, pericarditis, and liver milk spots was estimated. For each farm, annual performance indicators were obtained. Regression trees analysis (RTA) was used to identify pluck lesions and to estimate cut-off values for their prevalence associated with changes in ADG. Different scenarios were simulated as per RTA results and economic and risk analyses were performed using the Teagasc Pig Production Model. Risk analysis was performed by Monte Carlo sampling using the Microsoft Excel add-in @Risk with 10,000 iterations.

Results

Pleurisy and lung scars were the main lesions associated with changes in ADG. Three scenarios were simulated based on RTA results: a 728 sow farrow-to-finish farm with prevalence of i) pleurisy < 25% and lung scars < 8% (LPLSC; ADG = 760 g); ii) pleurisy < 25% and lung scar ≥8% (LPHSC; ADG = 725 g) and iii) pleurisy ≥25% (HP; ADG = 671 g). The economic analysis showed increased feed and dead animals for disposal costs, and lower sales in the HP and LPHSC scenarios than in the LPLSC scenario; thereby reducing gross margin and net profit. Results from the risk analysis showed lower probability of reaching any given level of profit in the HP scenario compared with the LPHSC and LPLSC scenarios.

Conclusion

Under the conditions of this study, higher prevalence of pleurisy and lung scars were associated with decreased ADG during the grower-finisher period and with lower economic return in the simulated farms. These results highlight the economic benefits and importance of preventing and/or controlling respiratory disease.

Financial Analysis of Herd Status and Vaccination Practices for Porcine Reproductive and Respiratory Syndrome Virus, Swine Influenza Virus, and Mycoplasma hyopneumoniae in Farrow-to-Finish Pig Farms Using a Bio-Economic Simulation Model

This study aimed (1) to quantify the effects of positive status and vaccination practices for porcine reproductive and respiratory syndrome virus (PRRSv), swine influenza virus (SIV) and Mycoplasma hyopneumoniae (MHYO) on the profitability of farrow-to-finish pig farms and (2) to examine the financial impact of vaccination status in PRRSv and SIV positive farms. Data from 56 Irish farrow-to-finish pig farms were used for this study. Production effects associated with herd status for the three pathogens were incorporated into the Teagasc Pig Production Model (TPPM), a bio-economic stochastic simulation model for farrow-to-finish pig farms. In the analysis, farms negative (–) for either PRRSv, SIV or MHYO were assumed as baseline when presenting results for farms positive (+) for each pathogen. While all MHYO(+) farms used vaccination against the pathogen, not all PRRSv(+) or SIV(+) farms vaccinated against the disease. For all scenarios, a 728-sow farrow-to-finish farm with weekly farrowing batches was simulated. Financial risk analysis was conducted by Monte Carlo simulation within the TPPM using the Microsoft Excel add-in @Risk. Mortality rates, feedstuff costs and price per kg of meat produced were included as input stochastic variables and annual net profit was set as stochastic output variable. Positive farms sold fewer pigs and produced less kg of meat than negative farms and had increased feed usage during the weaner and finisher stages. Variable costs increased in positive farms due to increased feed costs, more dead animals for disposal and healthcare costs. Annual mean profit was lower by 24% in vaccinated PRRSv(+), 14.6% in unvaccinated PRRSv(+), 36.7% in vaccinating SIV(+), 12.8% in unvaccinated SIV(+), and 41% in MHYO(+) farms. Negative farms were first order stochastically dominant over positive farms, indicating that for a given level of profit, the financial risk is lower by avoiding respiratory pathogens. Similarly, unvaccinated farms were second order stochastically dominant over vaccinating farms suggesting that farms that do not vaccinate are less affected by the disease. Results from this study provide further evidence to encourage farmers to undertake improved disease control measures and/or to implement eradication programs.