Table 2.
Forecasted and estimated costs and returns in a representative farrow-to-finish operation across varying levels of finished pigs sold per female in 20141
| Scenario | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2014 Estimate Finished pigs sold per mated female per year | ||||||||
| 2014 Forecast made September 2013 | 2014 Estimate with forecasted finished pigs sold/female/year | Difference | −43% | −33% | −23% | −13% | −3% | |
| Productivity impact | ||||||||
| Finished pigs sold/female/year | 20.48 | 20.48 | 0.00 | 11.67 | 13.72 | 15.77 | 17.82 | 19.87 |
| Economic impact | ||||||||
| Average total revenue, $/head | $160.95 | $204.52 | $43.56 | $204.52 | $204.52 | $204.52 | $204.52 | $204.52 |
| Average total costs, $/head | $146.73 | $150.16 | $3.43 | $186.61 | $173.96 | $164.59 | $157.38 | $151.65 |
| Net return, $/head | $14.22 | $54.36 | $40.14 | $17.91 | $30.56 | $39.93 | $47.14 | $52.87 |
| Return on investment, %/head | 9.66% | 35.90% | 26.24% | 9.40% | 17.34% | 24.00% | 29.68% | 34.57% |
1This table demonstrates that costs per unit and net returns in farrow-to-finish production are highly dependent on production levels. More information about the procedures for estimating returns can be found at http://www2.econ.iastate.edu/estimated-returns/.