The Power of Organized
Data

Benchmark Analysis of Grow-Finish
Production in North America
Dr. Tom Stein
Minnesota Pork Pr...
Average performance for nursery [NUR], finishing [FIN], and single-stock wean-to-finish [W2F (SS)] closeouts for
groups cl...
NURSERY BENCHMARKING INSIGHTS
Percentile Distributions Across CLOSEOUTS for Line Items Reported on Nursery Closeouts
5
No....
EXAMPLE OF A ‘REPORT CARD’ FOR NURSERY
CLOSEOUT
For each key performance indicator,

I’d assign an overall grade of ‘C’ to...
Benchmarking Nursery Closeouts by Start Weight

No. Closeouts
No. Pigs
Start Wt
Out Wt
Avg DOF
Lb Feed/Pig
Cost/Lb Gain
Mo...
Benchmarking Nursery Closeouts by Average Days-on-Feed
(excluded 3 @ DOF < 21 and 41 @ DOF >= 70)

No. Closeouts
No. Pigs
...
Benchmarking Nursery Closeouts by Mortality %
Average Mortality %
< 1%
1-2%
2-3%
3-4%
4-5%
5-6%
6-7%
944
1,780
1,385
839
4...
NURSERY BENCHMARKING INSIGHTS

Feed cost/lb gain -- just as you'd expect
Group size effects? Huge variation in group size,...
Average performance for nursery [NUR], finishing [FIN], and single-stock wean-to-finish [W2F (SS)] closeouts for
groups cl...
WEAN-TO-FINISH BENCHMARKING INSIGHTS

MetaFarms 2012 Benchmarking Single-Stock Wean-to-Finish Closeouts -- Percentiles Acr...
WEAN-TO-FINISH BENCHMARKING INSIGHTS

What’s the effect of Start Weight?

The Power of Organized Data™
WEAN-TO-FINISH BENCHMARKING INSIGHTS
MetaFarms 2012 Benchmarking Single-Stock Wean-to-Finish Closeouts by Start Weight
1,4...
WEAN-TO-FINISH BENCHMARKING INSIGHTS

What’s the effect of Days on Feed?

The Power of Organized Data™
WEAN-TO-FINISH BENCHMARKING INSIGHTS
MetaFarms 2012 Benchmarking Single-Stock Wean-to-Finish Closeouts by DOF
1,476 Closeo...
FINISHING GROUPS BENCHMARKING INSIGHTS

The Power of Organized Data™
Average performance for nursery [NUR], finishing [FIN], and single-stock wean-to-finish [W2F (SS)] closeouts for
groups cl...
FINISHING GROUPS BENCHMARKING INSIGHTS

MetaFarms 2012 Percentile Distributions Across CLOSEOUTS for Line Items Reported o...
FINISHING GROUPS BENCHMARKING INSIGHTS

What’s the effect of Start Weight?
FINISHING GROUPS BENCHMARKING INSIGHTS
MetaFarms 2012 Benchmarking Finishing Closeouts by Start Weight
(excludes 57 closeo...
FINISHING GROUPS BENCHMARKING INSIGHTS

What’s the effect of Days on Feed?
FINISHING GROUPS BENCHMARKING INSIGHTS
MetaFarms 2012 Benchmarking Finishing Closeouts by Average Days-on-Feed (DOF)
(excl...
BENCHMARKING 2012 CLOSEOUTS

Use the distributions to do “report cards” for your
company and each closeout or set of close...
MetaFarms 2012 Benchmarking Finishing Group Closeouts by Company
sorted on Average Days on Feed (DOF) from shortest to lon...
Creating a
report card
for your
COMPANY

90
80

Start Wt
Out Wt
DOF
Lb Feed/Pig
Cost/Lb Gain
Mortality %
ADG
FCR
ADFI

Com...
FINISHING GROUPS BENCHMARKING INSIGHTS

Is it possible to rank closeouts by grower?
FINISHING GROUPS – RANKING BY
GROWER
Many pork production companies organize quarterly ‘grower meetings’ where they presen...
CHALLENGE OF MANAGING FLOW, SPACE & WEIGHT

Producer says, “we sell at a fixed
market wgt.”
But is it DOF or market wgt. ?...
TODAY’S ‘BRUTE FORCE’ METHOD OF MANAGING
FLOW, SPACE & WEIGHT

12
STRUGGLING WITH MANAGING FLOWS, SPACE & WEIGHT
Cannot optimize carcass weight if half the pigs are
sold at least 30lbs too...
LOGISTICS -- CHALLENGES OF SPACE, FLOW, & WEIGHT
THINK ‘PREDICTION FACTORS’ V. RISK
FACTORS
THINK ‘PREDICTION FACTORS’ V. RISK
FACTORS
THINK ‘PREDICTION FACTORS’ V. RISK
FACTORS
THINK ‘PREDICTION FACTORS’ V. RISK
FACTORS
THINK ‘PREDICTION FACTORS’ V. RISK
FACTORS
TOM’S CONCLUSIONS & QUESTIONS
•

Accept variation, manage for it

•

The only intervention that works (for the slower-grow...
METAFARMS WHO WE ARE
• Founded in 2000
• Thomas E. Stein DVM, MS, PhD, Executive Chairman
• Chad Becker, President & CEO

...
METAFARMS MISSION & VISION
Mission:
To provide organized data that empowers todays farmers to
responsibly feed the world.
...
METAFARMS MISSION

Provide organized data that empowers today’s farmers
to responsibly feed the world.
The Power of Organi...
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Dr. Tom Stein - Benchmark Analysis of Production and Financial Measures Across Nursery, Finishing and Wean-to-Finish Closeouts in North America

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Benchmark Analysis of Production and Financial Measures Across Nursery, Finishing and Wean-to-Finish Closeouts in North America - Dr. Tom Stein, Executive Chairman at MetaFarms, Inc., from the 2014 Minnesota Pork Congress, January 14-15, Minneapolis, MN, USA.

More presentations at http://www.swinecast.com/2014-minnesota-pork-congress

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  • Every producer faces challenges associated with weight variability They try to prevent it by … but inevitably they have an undesirable variation, then the tools that are currently available to manage are not very effectiveElanco plays in this space with making recommendations on how to “through management” prevent variability - The current tools available don’t provide producers with the quality of information they need to make the most profitable marketing decisions
  • Dr. Tom Stein - Benchmark Analysis of Production and Financial Measures Across Nursery, Finishing and Wean-to-Finish Closeouts in North America

    1. 1. The Power of Organized Data Benchmark Analysis of Grow-Finish Production in North America Dr. Tom Stein Minnesota Pork Producers Annual Meeting January 14-15, 2014
    2. 2. Average performance for nursery [NUR], finishing [FIN], and single-stock wean-to-finish [W2F (SS)] closeouts for groups closed January 1 through December 31, 2012. Weights are in lbs, costs are $USD. No. Closeouts No. Pigs Start Wt Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI Avg Group Size % Mkt Sales % SubStnd Sales Feed cost/ton Corn cost/bu NUR 6,295 12,461,844 13 54 48 67 $0.3508 3.0% 0.84 1.64 1.36 1,980 $432.17 $6.44 FIN 7,405 13,946,859 55 270 120 612 $0.4106 4.1% 1.80 2.92 5.25 1,883 90.2% 1.84% $281.13 $6.38 SS W2F 1,476 2,822,284 13.5 270 163 661 $0.3652 5.9% 1.57 2.64 4.12 1,915 89.0% 2.60% $294.50 $6.55
    3. 3. NURSERY BENCHMARKING INSIGHTS Percentile Distributions Across CLOSEOUTS for Line Items Reported on Nursery Closeouts 5 No. Closeouts No. Pigs Start Wt Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI Avg Group Size Feed cost/ton Corn cost/bu 10 20 30 40 50 60 70 80 90 95 10.9 36.0 33.3 33.9 $0.4947 8.9% 0.59 2.03 0.94 439 $624.91 $7.95 11.5 36.9 37 41.3 $0.4528 6.1% 0.64 1.92 1.03 517 $556.09 $7.69 12.0 45.0 42 50.3 $0.4134 4.2% 0.71 1.80 1.14 590 $507.65 $7.31 12.2 48.2 45.5 56.0 $0.3860 3.3% 0.76 1.72 1.22 682 $478.24 $6.74 12.6 51.3 47.6 61.2 $0.3644 2.7% 0.80 1.67 1.28 1,051 $453.60 $6.50 13.0 54.4 49 65.6 $0.3450 2.3% 0.84 1.62 1.35 1,249 $430.22 $6.36 13.3 57.2 50.1 70.4 $0.3261 1.9% 0.88 1.57 1.42 1,480 $406.59 $6.17 13.7 60.0 52.5 75.2 $0.3094 1.5% 0.92 1.52 1.49 2,199 $383.49 $6.00 14.1 62.9 54 82.0 $0.2915 1.2% 0.96 1.47 1.57 2,802 $361.28 $5.83 14.8 67.4 56.8 93.5 $0.2714 0.8% 1.02 1.38 1.71 3,988 $337.22 $5.42 15.4 71.5 59.9 103.1 $0.2519 0.6% 1.06 1.31 1.82 5,993 $319.65 $5.31 read across the rows NOT down the columns use these to create report cards for individual closeouts or sets of closeouts DON'T use these numbers for a company report card
    4. 4. EXAMPLE OF A ‘REPORT CARD’ FOR NURSERY CLOSEOUT For each key performance indicator, I’d assign an overall grade of ‘C’ to this closeout, no better than average (mediocre) performance as a whole. In fact, the low mortality was the only item that stood out as above average. ----------------------------------------------- Information Info ------------------------------------- Utilization Info -------------Group Performance ---------------------------------------------------- Group Name 111101 1181 3324056 4031103 930011101 930021101 3130N 61101 801101 411101 A082911N 3138N 1138110 C4JA St art Wt Out Wt DOF Lb Feed/ Pig Cost / Lb Gain Mort alit y % ADG FCR ADFI Group Size Start Close 01/17/2011 02/18/2011 03/10/2011 06/05/2011 06/15/2011 06/24/2011 07/12/2011 07/15/2011 07/26/2011 08/22/2011 08/29/2011 09/02/2011 09/12/2011 09/21/2011 01/01/2012 02/16/2012 01/01/2012 01/01/2012 01/01/2012 01/01/2012 01/15/2012 01/01/2012 01/01/2012 03/08/2012 02/14/2012 01/01/2012 10/13/2012 04/30/2012 Closeout 13.0 50.0 43.6 60.2 $0.4918 1.4% 0.84 1.64 1.38 2,501 Percent ile 50 36 24 37 6 74 50 46 55 75 Started Start Wt Avg Out Lb Feed Feed Mortality Wt w/o Per Hd Cost per as % of Dead Wt Lb Gain Pigs In Prod 2,415 4,669 2,100 2,000 1,208 1,191 1,158 1,200 1,189 2,501 1,545 1,067 3,397 1,207 100 90 80 70 Percentiles find the actual result from a Closeout Summary report and refer that result to the Percentile Distribution table. For example, a Start Weight of 13.0 lb is at the 50th percentile across all closeouts and companies. Do this for each of the KPI’s and then create a chart, using a horizontal line to represent the 50th percentile. Bars over the 50th percentile line represent a ‘good’ result, i.e. above average performance. In this example, 1.4% mortality is ranked in the 74th percentile, meaning that mortality level in this closeout was better (lower) than 74% of the 6,295 closeouts. Or, said the other way around, this closeout’s mortality level was in the Top 25% (OK, Top 26%) of all nursery closeouts in 2012. 60 50 40 30 20 10 0 11.7 12.3 12.8 12.4 13.2 14.1 15.6 13.0 12.8 13.0 11.7 12.0 14.6 14.4 39.5 48.8 57.3 86.6 43.8 39.7 50.0 40.5 60.0 50.0 65.0 50.0 32.2 52.1 44.53 47.96 72.51 119.45 54.66 39.13 59.11 50.00 71.47 60.23 92.41 62.91 21.06 62.63 0.5459 0.2546 0.1996 0.3348 0.5226 0.5188 0.5013 0.5800 0.4188 0.4918 0.3237 0.3194 0.3749 0.2708 1.74% 4.30% 3.95% 2.40% 2.24% 1.43% 8.46% 2.83% 1.35% 1.44% 3.12% 6.65% 0.68% 1.74% ADG 0.73 1.15 0.86 1.04 0.63 0.75 0.68 0.70 0.98 0.84 1.00 0.73 0.72 0.75 FC 1.61 1.34 1.65 1.62 1.80 1.54 1.88 1.84 1.52 1.64 1.74 1.69 1.20 1.67 ADFI 1.18 1.54 1.42 1.68 1.14 1.15 1.28 1.28 1.49 1.38 1.74 1.24 0.87 1.25 Avg DOF 37.7 31.1 51.0 71.0 48.0 34.0 48.4 39.0 48.0 43.6 53.5 50.9 24.2 50.0
    5. 5. Benchmarking Nursery Closeouts by Start Weight No. Closeouts No. Pigs Start Wt Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI 9 - 10 99 83,183 43.0 48.3 56.3 $0.4368 4.9% 0.67 1.72 1.16 Average Start Wt (lbs) 10 - 11 11 - 12 12 -13 13 - 14 14 - 15 15 - 16 Overall 237 780 1,949 1,734 941 357 6,097 485,766 2,394,003 4,130,919 2,769,842 1,691,976 586,282 12,141,971 13.0 50.9 53.3 53.8 55.1 54.3 55.4 54.1 50.2 48.9 48.2 48.5 47.5 45.5 48.2 66.0 67.4 66.4 67.8 65.9 65.4 66.7 $0.3366 $0.3326 $0.3449 $0.3554 $0.3558 $0.3699 $0.3508 3.3% 2.8% 3.3% 2.9% 2.9% 2.2% 3.0% 0.78 0.84 0.84 0.84 0.82 0.86 0.84 1.64 1.62 1.62 1.64 1.66 1.65 1.64 1.27 1.35 1.36 1.37 1.36 1.41 1.36 penalty for lights 10 - 11 lb huge penalty for very light < 10 lb 11 - 15 lb, outcomes are similar
    6. 6. Benchmarking Nursery Closeouts by Average Days-on-Feed (excluded 3 @ DOF < 21 and 41 @ DOF >= 70) No. Closeouts No. Pigs Start Wt Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI 21-28 70 91,346 13.4 29.8 Average Days on Feed 28-35 35-42 42-49 49-56 56-63 361 823 1,892 2,345 634 889,091 2,068,858 4,331,874 3,750,139 995,666 13.4 13.2 13.0 13.0 12.9 37.3 44.6 51.8 57.9 65.9 24.1 $0.4182 1.1% 0.64 1.49 0.95 34.9 $0.3863 1.7% 0.74 1.48 1.09 47.7 $0.3664 2.7% 0.80 1.54 1.22 61.0 $0.3504 3.2% 0.83 1.61 1.32 74.1 $0.3430 3.2% 0.85 1.68 1.42 92.3 $0.3337 2.8% 0.90 1.76 1.58 63-70 Overall 126 6,251 245,402 12,372,376 13.2 13.0 73.6 53.9 48.0 105.6 66.3 $0.3510 $0.3509 4.4% 3.0% 0.91 0.83 1.78 1.64 1.61 1.36 biggest driver of results need to control for DOF if indexing closeouts mortality goes up with more DOF ADG, FCR, ADFI are growth curve effects
    7. 7. Benchmarking Nursery Closeouts by Mortality % Average Mortality % < 1% 1-2% 2-3% 3-4% 4-5% 5-6% 6-7% 944 1,780 1,385 839 442 268 142 No. Closeouts 1,765,416 3,493,162 3,039,336 1,808,521 854,449 499,758 202,028 No. Pigs 13.3 13.1 13.1 12.9 12.9 12.9 12.6 Start Wt 52.8 55.4 55.3 54.7 53.7 52.6 49.9 Out Wt 45.1 48.2 48.7 49.0 49.2 49.2 48.6 Avg DOF 64.6 68.8 68.0 67.4 65.4 64.9 60.5 Lb Feed/Pig $0.3476 $0.3365 $0.3430 $0.3501 $0.3614 $0.3705 $0.3869 Cost/Lb Gain 0.67% 1.48% 2.45% 3.44% 4.44% 5.44% 6.43% Mortality % 0.86 0.86 0.85 0.84 0.81 0.78 0.74 ADG 1.61 1.62 1.62 1.64 1.63 1.68 1.66 FCR 1.39 1.40 1.38 1.36 1.32 1.30 1.22 ADFI 1,870 1,962 2,194 2,156 1,933 1,865 1,423 Avg Group Size 7-8% 102 189,297 12.8 49.1 48.7 59.8 $0.4076 7.45% 0.72 1.72 1.22 1,856 8-9% 84 153,057 12.9 51.6 50.3 64.6 $0.3785 8.50% 0.74 1.72 1.26 1,822 9-10% 56 630,043 12.8 47.8 48.4 58.6 $0.4103 9.47% 0.69 1.75 1.19 1,126 >= 10% 206 334,147 12.8 50.5 50.9 63.0 $0.4107 14.82% 0.69 1.78 1.22 1,622 Overall 6,295 12,461,844 13.0 54.1 48.2 66.7 $0.3508 3.03% 0.84 1.64 1.36 1,980 lighter start wt groups have higher mortality % higher mortality groups have higher feed cost/lb gain higher mortality groups have lower ADG, higher FCR, lower ADFI
    8. 8. NURSERY BENCHMARKING INSIGHTS Feed cost/lb gain -- just as you'd expect Group size effects? Huge variation in group size, not easy to see a pattern No. of sow farm sources into nursery -- no effect No. of fills -- no effect Time to fill -- no effect The Power of Organized Data™
    9. 9. Average performance for nursery [NUR], finishing [FIN], and single-stock wean-to-finish [W2F (SS)] closeouts for groups closed January 1 through December 31, 2012. Weights are in lbs, costs are $USD. No. Closeouts No. Pigs Start Wt Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI Avg Group Size % Mkt Sales % SubStnd Sales Feed cost/ton Corn cost/bu NUR 6,295 12,461,844 13 54 48 67 $0.3508 3.0% 0.84 1.64 1.36 1,980 $432.17 $6.44 FIN 7,405 13,946,859 55 270 120 612 $0.4106 4.1% 1.80 2.92 5.25 1,883 90.2% 1.84% $281.13 $6.38 SS W2F 1,476 2,822,284 13.5 270 163 661 $0.3652 5.9% 1.57 2.64 4.12 1,915 89.0% 2.60% $294.50 $6.55
    10. 10. WEAN-TO-FINISH BENCHMARKING INSIGHTS MetaFarms 2012 Benchmarking Single-Stock Wean-to-Finish Closeouts -- Percentiles Across CLOS 1,476 Closeouts; 2,822,284 Pigs Percentiles 10 Start Wt Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI % Mkt Sales % SubStnd Sales Feed cost/ton Corn cost/bu Group Size 20 30 40 50 60 70 80 90 12.0 235 148 596 $0.4497 13.9% 1.32 2.82 3.83 67.0% 4.80% $319.00 12.4 241 154 616 $0.4192 8.7% 1.36 2.82 3.83 74.0% 3.80% $308.00 $6.81 1,342 12.8 242 157 634 $0.3959 8.3% 1.43 2.81 3.95 76.0% 3.60% $301.00 $6.66 1,439 12.8 258 161 649 $0.3928 7.8% 1.49 2.74 4.01 88.0% 3.60% $300.00 $6.38 1,528 13.5 265 163 664 $0.3916 6.4% 1.56 2.65 4.04 89.0% 1.60% $293.00 $6.36 2,163 14.0 270 166 678 $0.3881 6.1% 1.59 2.52 4.07 92.0% 1.20% $281.00 $6.30 2,255 14.0 271 169 693 $0.3719 5.2% 1.60 2.50 4.37 92.0% 0.00% $280.00 $6.16 2,383 15.0 273 173 709 $0.3679 4.6% 1.64 2.48 4.48 93.0% 0.00% $273.00 $6.10 2,666 15.0 287 178 727 $0.3596 4.0% 1.66 2.45 4.55 94.0% 0.00% $269.00 1,243 3,455
    11. 11. WEAN-TO-FINISH BENCHMARKING INSIGHTS What’s the effect of Start Weight? The Power of Organized Data™
    12. 12. WEAN-TO-FINISH BENCHMARKING INSIGHTS MetaFarms 2012 Benchmarking Single-Stock Wean-to-Finish Closeouts by Start Weight 1,476 Closeouts; 2,822,284 Pigs No. Closeouts No. Pigs Start Wt Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI % Mkt Sales % SubStnd Sales Feed cost/ton Corn cost/bu Group Size 10-11 lb 33 59,044 10.6 266 167 659 $0.3631 7.3% 1.52 2.64 4.00 85.8% 3.10% $279.70 $6.30 1,789 11-12 lb 122 239,894 11.6 266 164 649 $0.3746 6.6% 1.55 2.61 4.03 88.7% 2.60% $298.40 $6.48 1,966 12-13 lb 445 928,022 12.4 269 164 658 $0.3631 6.2% 1.57 2.61 4.09 89.1% 2.50% $294.10 $6.51 2,085 13-14 lb 370 757,151 13.5 270 163 665 $0.3595 5.7% 1.58 2.66 4.15 90.2% 2.30% $295.00 $6.56 2,046 14-15 lb 279 491,600 14.4 270 163 666 $0.3693 5.6% 1.57 2.66 4.13 89.9% 3.10% $298.60 $6.63 1,762 15-16 lb 156 258,591 15.4 271 163 664 $0.3791 5.8% 1.57 2.66 4.17 88.8% 2.30% $298.60 $6.64 1,658 > 16 lb 58 75,133 16.5 273 160 656 $0.3604 5.7% 1.61 2.62 4.22 90.4% 2.50% $279.90 $6.73 1,318 Overall 1,476 2,821,230 13.5 270 163 661 $0.3653 5.9% 1.57 2.64 4.12 89.4% 2.60% $294.50 $6.55 1,913
    13. 13. WEAN-TO-FINISH BENCHMARKING INSIGHTS What’s the effect of Days on Feed? The Power of Organized Data™
    14. 14. WEAN-TO-FINISH BENCHMARKING INSIGHTS MetaFarms 2012 Benchmarking Single-Stock Wean-to-Finish Closeouts by DOF 1,476 Closeouts; 2,822,284 Pigs No. Closeouts No. Pigs Start Wt Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI % Mkt Sales % SubStnd Sales Feed cost/ton Corn cost/bu Group Size < 140 31 48,052 14.2 253 137 578 $0.3524 3.0% 1.74 2.43 4.21 82.7% 2.1% $290.50 $6.43 1,550 140-150 178 300,195 13.4 266 146 622 $0.3808 3.6% 1.73 2.48 4.23 89.7% 2.8% $302.10 $6.52 1,686 150-160 347 646,506 13.6 268 156 649 $0.3739 4.7% 1.63 2.57 4.17 90.3% 3.1% $297.40 $6.54 1,863 160-170 512 970,800 13.5 271 165 670 $0.3778 6.0% 1.56 2.66 4.12 89.6% 2.5% $294.60 $6.62 1,896 170-180 288 602,112 13.4 272 174 689 $0.3410 7.7% 1.48 2.73 4.05 89.1% 2.4% $286.50 $6.50 2,091 > 180 107 235,432 12.8 275 186 706 $0.3212 8.8% 1.40 2.83 4.03 88.5% 1.4% $290.50 $6.50 2,200 Overall 1,476 2,821,230 13.5 270 163 661 $0.3653 5.9% 1.57 2.64 4.12 89.4% 2.6% $294.50 $6.55 1,913
    15. 15. FINISHING GROUPS BENCHMARKING INSIGHTS The Power of Organized Data™
    16. 16. Average performance for nursery [NUR], finishing [FIN], and single-stock wean-to-finish [W2F (SS)] closeouts for groups closed January 1 through December 31, 2012. Weights are in lbs, costs are $USD. No. Closeouts No. Pigs Start Wt Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI Avg Group Size % Mkt Sales % SubStnd Sales Feed cost/ton Corn cost/bu NUR 6,295 12,461,844 13 54 48 67 $0.3508 3.0% 0.84 1.64 1.36 1,980 $432.17 $6.44 FIN 7,405 13,946,859 55 270 120 612 $0.4106 4.1% 1.80 2.92 5.25 1,883 90.2% 1.84% $281.13 $6.38 SS W2F 1,476 2,822,284 13.5 270 163 661 $0.3652 5.9% 1.57 2.64 4.12 1,915 89.0% 2.60% $294.50 $6.55
    17. 17. FINISHING GROUPS BENCHMARKING INSIGHTS MetaFarms 2012 Percentile Distributions Across CLOSEOUTS for Line Items Reported on Finishing Group Close 5 No. Closeouts No. Pigs Start Wt Out Wt Avg DOF Lb Feed/Pig* Cost/Lb Gain Mortality % ADG FCR ADFI Avg Group Size % Mkt Sales % SubStnd Sales Feed cost/ton Corn cost/bu lo - hi lo - hi hi - lo hi - lo hi - lo hi - lo lo - hi hi - lo hi - lo lo - hi lo - hi hi - lo hi - lo hi - lo 10 20 30 40 36 245 145 718 $0.5390 9.2% 1.52 3.56 6.36 350 75.6% 6.25% $355.72 $7.40 40 253 139 705 $0.5044 7.3% 1.58 3.33 6.02 575 83.1% 4.53% $337.88 $7.06 45 259 132 680 $0.4645 5.7% 1.66 3.17 5.74 990 87.9% 3.01% $314.78 $6.70 48 264 128 656 $0.4416 4.8% 1.71 3.08 5.57 1,090 90.4% 2.26% $302.63 $6.56 51 267 124 636 $0.4235 4.1% 1.76 3.01 5.43 1,257 92.1% 1.71% $289.24 $6.45 Percentiles 50 60 70 80 90 95 54 270 120 619 $0.4084 3.5% 1.81 2.94 5.30 1,360 93.5% 1.26% $277.98 $6.33 58 273 116 602 $0.3938 3.0% 1.85 2.88 5.16 2,041 94.6% 0.80% $267.76 $6.20 61 277 112 584 $0.3808 2.6% 1.90 2.80 5.00 2,219 95.4% 0.33% $258.72 $6.09 64 281 108 564 $0.3686 2.2% 1.95 2.72 4.83 2,565 96.2% 0.09% $249.78 $5.98 70 287 103 535 $0.3521 1.6% 2.02 2.56 4.59 3,992 97.0% 0.00% $238.84 $5.80 76 292 99 500 $0.3369 1.3% 2.10 2.42 4.38 4,370 97.6% 0.00% $230.19 $5.47 * Lb Feed/Pig includes only the Finishing phase; it does not include Nursery feed/pig read across the rows NOT down the columns use these to create a report card for your company DON'T use these to create report cards for individual closeouts
    18. 18. FINISHING GROUPS BENCHMARKING INSIGHTS What’s the effect of Start Weight?
    19. 19. FINISHING GROUPS BENCHMARKING INSIGHTS MetaFarms 2012 Benchmarking Finishing Closeouts by Start Weight (excludes 57 closeouts @ < 30 lb and 257 @ > 80lb start wt) Average Start Weight (lbs) No. Closeouts % of Closeouts No. Pigs Out Wt Avg DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI Avg Group Size % Mkt Sales % SubStnd Sales Feed cost/ton Corn cost/bu 30 -35 245 35 - 40 471 371,431 269 134 603 $0.3905 4.6% 1.76 2.62 4.64 1,516 90.9% 2.00% $297.40 $6.34 812,255 269 133 616 $0.3950 4.8% 1.75 2.72 4.75 1,725 90.8% 2.00% $291.01 $6.34 40 - 45 790 45 - 50 1,138 1,491,362 2,316,717 271 271 130 127 626 632 $0.4092 $0.4147 4.7% 4.5% 1.75 1.76 2.84 2.92 4.96 5.11 1,888 2,036 90.8% 91.4% 1.74% 1.79% $286.38 $284.17 $6.38 $6.42 50 - 55 1,127 55 - 60 1,148 2,126,934 271 122 629 $0.4101 4.3% 1.78 2.94 5.24 1,887 91.4% 1.83% $278.58 $6.35 2,191,820 268 115 612 $0.4142 3.9% 1.82 2.96 5.39 1,909 90.1% 1.83% $280.01 $6.41 60 - 65 1,045 65 - 70 628 70 - 75 344 75 - 80 157 2,058,641 1,191,342 609,998 269 268 269 112 110 108 606 592 585 $0.4153 $0.4124 $0.4094 3.6% 3.6% 3.6% 1.85 1.84 1.85 2.98 2.99 3.01 5.49 5.48 5.51 1,970 1,897 1,773 89.9% 88.2% 89.5% 1.79% 1.97% 1.95% $278.66 $275.66 $271.01 $6.36 $6.38 $6.37 380,092 271 106 576 $0.4132 3.6% 1.85 3.01 5.56 1,784 89.3% 2.16% $274.39 $6.36
    20. 20. FINISHING GROUPS BENCHMARKING INSIGHTS What’s the effect of Days on Feed?
    21. 21. FINISHING GROUPS BENCHMARKING INSIGHTS MetaFarms 2012 Benchmarking Finishing Closeouts by Average Days-on-Feed (DOF) (excludes 153 closeouts @ < 90 DOF and 120 @ > 150 DOF) Average DOF No. Closeouts % of Closeouts No. Pigs Start Wt Out Wt Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI Avg Group Size % Mkt Sales % SubStnd Sales Feed cost/ton Corn cost/bu 90 - 100 110 - 110 110 - 120 120 - 130 130 - 140 375 1,471 1,820 1,857 1,163 657,038 70 263 545 $0.4061 2.6% 1.99 2.86 5.67 1,752 86.2% 2.44% $283.64 $6.34 2,891,579 3,401,074 3,454,080 63 57 50 268 269 271 591 609 628 $0.4104 $0.4111 $0.4081 3.1% 3.8% 4.5% 1.91 1.83 1.76 2.93 2.92 2.90 5.57 5.34 5.08 1,966 1,869 1,860 91.2% 92.3% 91.5% 1.90% 1.85% 1.76% $279.53 $280.30 $281.68 $6.39 $6.50 $6.30 2,311,352 46 272 645 $0.4176 5.1% 1.67 2.95 4.93 1,987 90.4% 1.58% $286.01 $6.41 140 - 150 391 Overall 7,077 784,231 44 276 665 $0.4098 6.0% 1.60 3.01 4.83 2,006 89.3% 1.80% $273.83 $6.33 13,499,354 55 270 615 $0.4109 4.1% 1.80 2.92 5.24 1,907 91.1% 1.80% $281.25 $6.39
    22. 22. BENCHMARKING 2012 CLOSEOUTS Use the distributions to do “report cards” for your company and each closeout or set of closeouts (by grower, by supervisor, by genetics, etc.) The Power of Organized Data™
    23. 23. MetaFarms 2012 Benchmarking Finishing Group Closeouts by Company sorted on Average Days on Feed (DOF) from shortest to longest 80 6,860 1,932 13,252,148 54.5 271.0 120.0 Company Size Cat* No. Closeouts Group Size No. Pigs Start Wt Out Wt Avg DOF 77212 76099 79803 27928 12693 12267 26685 13191 84362 73268 51445 96767 52246 28210 58212 18847 78339 51945 56705 29503 21866 55811 5 1 3 4 6 6 2 3 6 6 6 2 6 1 3 2 2 5 5 5 1 2 83 8 29 42 158 143 11 22 348 185 342 17 407 8 28 19 14 88 68 82 1 14 660 1,689 335 1,917 3,054 1,969 1,109 1,064 2,123 1,254 2,196 849 2,060 1,061 686 513 790 956 1,420 1,225 4,375 1,002 54,784 13,511 9,727 80,507 482,461 281,509 12,195 23,412 738,949 232,069 750,872 14,426 838,488 8,485 19,220 9,738 11,058 84,102 96,565 100,459 4,375 14,027 64.2 66.9 76.3 62.5 63.1 55.8 64.5 68.1 64.7 58.0 60.4 57.9 60.4 60.6 60.4 81.0 58.1 56.5 57.0 57.9 42.8 50.7 271.6 276.1 266.2 266.7 266.7 266.8 267.7 271.8 264.2 266.7 268.6 270.6 275.4 272.2 268.2 287.2 266.8 265.6 263.1 266.2 274.1 264.9 102.1 104.3 105.5 106.2 106.4 107.0 107.5 107.8 107.9 108.1 108.6 109.0 110.8 111.0 111.8 112.1 112.7 113.0 113.2 113.4 113.5 114.0 616.2 $0.4058 4.0% Lb Cost/Lb Mortality Feed/Pig Gain % 604.2 617.7 499.7 544.1 568.9 577.3 572.5 592.3 593.8 557.3 605.9 571.9 644.1 626.5 559.2 623.5 591.5 601.1 591.9 590.9 534.6 563.6 $0.4520 $0.4371 $0.3668 $0.4252 $0.4399 $0.4057 $0.4667 $0.4821 $0.3813 $0.3617 $0.3859 $0.3938 $0.4288 $0.4143 $0.3831 $0.4751 $0.3949 $0.4570 $0.4448 $0.3998 $0.3295 $0.4446 2.2% 2.4% 2.0% 2.6% 3.1% 1.5% 3.1% 2.9% 3.6% 2.8% 3.1% 1.7% 3.9% 1.3% 3.7% 3.5% 3.2% 2.5% 3.3% 3.8% 2.3% 2.3% 1.80 2.92 5.25 92.8% ADG FCR ADFI % Mkt Sales 2.02 1.98 1.85 1.95 1.88 1.96 1.86 1.87 1.84 1.93 1.90 1.94 1.91 1.90 1.85 1.81 1.85 1.84 1.81 1.85 2.03 1.87 2.95 2.98 2.80 2.69 2.84 2.75 2.85 3.01 3.05 2.71 2.94 2.71 3.04 2.97 2.72 3.08 2.92 2.90 2.90 2.80 2.32 2.79 5.87 5.91 5.26 5.26 5.34 5.38 5.31 5.61 5.57 5.23 5.59 5.26 5.79 5.65 5.03 5.55 5.38 5.32 5.21 5.22 4.71 5.09 93.5% 95.1% 90.8% 96.1% 94.0% 94.7% 94.3% 94.4% 92.9% 90.0% 95.2% 95.0% 94.4% 98.2% 94.5% 95.5% 93.9% 96.5% 95.8% 94.1% 96.6% 95.7% 1.8% $279 $6.44 % Feed Corn SubStnd cost/ton cost/bu Sales 1.9% $306.60 $6.38 1.7% $292.72 $6.26 0.0% $262.36 1.3% $315.82 2.8% $310.20 3.7% $295.30 $6.32 0.0% $327.48 $6.36 0.7% $320.38 2.5% $247.15 6.8% $267.56 $5.89 1.4% $263.21 2.7% $291.22 $6.62 0.3% $282.80 0.5% $278.92 $6.25 1.8% $281.15 $6.22 0.2% $313.76 $6.71 2.7% $271.70 $5.75 1.0% $316.55 $6.60 0.6% $309.17 $6.77 1.7% $280.98 $6.35 1.1% $283.95 $6.50 1.2% $313.64 $6.91
    24. 24. Creating a report card for your COMPANY 90 80 Start Wt Out Wt DOF Lb Feed/Pig Cost/Lb Gain Mortality % ADG FCR ADFI Company 61.3 263.4 117.1 621.4 $0.4070 4.9% 1.70 3.13 5.32 Percentile 80 10 40 63 55 20 20 8 70 Percentiles 70 60 50 40 30 20 10 0
    25. 25. FINISHING GROUPS BENCHMARKING INSIGHTS Is it possible to rank closeouts by grower?
    26. 26. FINISHING GROUPS – RANKING BY GROWER Many pork production companies organize quarterly ‘grower meetings’ where they present closeout performance numbers and attempt to rank growers based on a combination of key performance factors. Here’s an example of a grower ranking report for a production system with 54 growers, showing the Top 25% v. Bottom 25%. Same genetics, same building design, same feed budget, same diets. ‘Grower’ is a risk factor for finishing closeout performance. The ‘jury is still out’ on whether you can truly cause improvement in the Bottom 25%, i.e. bring them up to at least average performance levels. Site No. Group s OVERALL RANK Pigs Started Start Wt Avg Out Wt Market Sales as % of Pigs Out Mortalit y% ADG FC ADFI A B C D E F G H I J K L 24 12 24 24 24 24 24 24 12 6 12 20 1 2 3 4 5 6 7 8 9 10 11 12 15,730 15,839 31,690 26,033 31,668 26,550 31,778 26,863 15,885 2,435 15,824 21,944 41.3 49.5 40.1 49.4 41.6 49.2 42.5 41.6 41.6 45.2 40.3 45.9 291.4 272.5 268.0 266.5 277.7 268.3 276.1 266.3 282.1 273.4 270.0 278.1 97.48% 96.83% 96.16% 94.93% 96.18% 95.83% 96.69% 96.38% 97.24% 97.28% 97.14% 95.98% 1.8% 2.3% 3.0% 3.0% 3.0% 3.0% 2.3% 2.7% 2.0% 2.2% 2.1% 3.4% 1.92 1.92 1.85 1.85 1.86 1.85 1.84 1.84 1.91 1.90 1.85 1.85 2.31 2.40 2.41 2.42 2.44 2.43 2.44 2.38 2.43 2.41 2.41 2.44 4.46 4.60 4.45 4.48 4.54 4.50 4.50 4.39 4.64 4.58 4.46 4.52 130.0 116.5 123.2 117.3 126.0 118.6 126.4 121.3 125.4 119.8 124.1 124.5 RR SS TT UU VV WW XX YY ZZ AAA BBB CCC 12 10 8 12 20 18 12 12 14 24 13 3 43 44 45 46 47 48 49 50 51 52 53 54 15,725 13,288 10,629 15,774 22,200 23,282 15,902 15,813 18,228 31,464 9,219 2,127 40.2 42.7 76.2 52.3 47.8 52.5 51.2 40.6 55.8 43.1 59.3 41.2 278.1 266.8 277.0 271.1 264.6 271.0 267.3 265.0 273.2 261.1 274.3 260.3 95.17% 95.41% 96.99% 96.10% 95.58% 95.88% 95.37% 95.77% 95.44% 93.48% 97.07% 95.41% 3.9% 3.0% 2.0% 2.8% 3.1% 2.9% 3.3% 2.9% 3.4% 4.2% 2.3% 3.4% 1.81 1.80 1.97 1.78 1.77 1.83 1.78 1.79 1.77 1.73 1.73 1.71 2.49 2.45 2.53 2.52 2.47 2.55 2.49 2.42 2.58 2.47 2.49 2.52 4.52 4.40 4.99 4.50 4.38 4.66 4.43 4.32 4.57 4.27 4.25 4.32 130.4 123.8 101.6 121.9 121.3 117.5 120.3 124.4 122.0 124.4 125.7 127.1 Avg DOF
    27. 27. CHALLENGE OF MANAGING FLOW, SPACE & WEIGHT Producer says, “we sell at a fixed market wgt.” But is it DOF or market wgt. ? Optimizing total system weight is more than optimizing carcass weight It’s about optimizing space and time relative to total weight produced 1
    28. 28. TODAY’S ‘BRUTE FORCE’ METHOD OF MANAGING FLOW, SPACE & WEIGHT 12
    29. 29. STRUGGLING WITH MANAGING FLOWS, SPACE & WEIGHT Cannot optimize carcass weight if half the pigs are sold at least 30lbs too light! Producer is leaving $12 per pig on the table for this closeout Planned closeout profit becomes loss due to revenue miss 47% of the pigs @ 249.7 + 25.9 SD If we had enough lead time and ‘knew’ that this was likely to happen we could make a decision to keep half the pigs – the slowest growing – on feed for a few more weeks
    30. 30. LOGISTICS -- CHALLENGES OF SPACE, FLOW, & WEIGHT
    31. 31. THINK ‘PREDICTION FACTORS’ V. RISK FACTORS
    32. 32. THINK ‘PREDICTION FACTORS’ V. RISK FACTORS
    33. 33. THINK ‘PREDICTION FACTORS’ V. RISK FACTORS
    34. 34. THINK ‘PREDICTION FACTORS’ V. RISK FACTORS
    35. 35. THINK ‘PREDICTION FACTORS’ V. RISK FACTORS
    36. 36. TOM’S CONCLUSIONS & QUESTIONS • Accept variation, manage for it • The only intervention that works (for the slower-growing ‘tier’ in a group) is TIME • True Wean-to-Finish system is the winner • It is possible to predict weights and weight distributions by Week-on-Feed • Q? Is it possible to improve the Bottom 25% of growers? • Q? What is the variation of closeout performance across production systems? Are there systems with low variation, i.e. consistency of performance over many many closeouts? If so, let’s study them! • Q? When placing a group of weaned pigs into a nursery or wean-to-finish site, what is the threshold % of light pigs (e.g. < 10lb or < 9 lb or < 8lb) that tips performance down. • Q? Is ADG by Selling Groups by Week-on-Feed consistent, stable and predictable within a production system? • Q? Where is the best place to intervene with TIME? Farrowing house? Nursery? Finishing?
    37. 37. METAFARMS WHO WE ARE • Founded in 2000 • Thomas E. Stein DVM, MS, PhD, Executive Chairman • Chad Becker, President & CEO • Web software as a service (SaaS) • Multiple species – Swine, Beef, Poultry • 20+% swine market share in North America and growing. • Diverse, and global customer base that includes some of the largest protein businesses in the world as well as some of the smallest.
    38. 38. METAFARMS MISSION & VISION Mission: To provide organized data that empowers todays farmers to responsibly feed the world. Vision: We will become the number one organizer of animal life cycle data by helping farmers precisely understand their production connecting them to the broader supply chain to best meet global food needs.
    39. 39. METAFARMS MISSION Provide organized data that empowers today’s farmers to responsibly feed the world. The Power of Organized Data™

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