Tackling Key Wean-Market Money Leaks - Dr. Charles Schelkopf, Bethany Swine Health Services, from the 2016 Power Of The Past, Force Of The Future Customer Appreciation event, August 16, 2016, hosted by Rensselaer Swine Services and Bethany Swine Health Services, Jasper Country Fairgrounds, IN, USA. More presentations at http://www.swinecast.com/2016-power-of-past-force-of-future-customer-appreciation

1. Bethany Swine Health Services
Annual Client Appreciation Meeting
August 16, 2016
Charles Schelkopf D.V.M.

2. Today:
1. Our system
2. Historical deficiencies
3. Tackling W-F Money leaks
 Marketing focus
 W-f performance benchmarking
 PRRS ARC

4. BSHS: Our “system”:
 45,000 sows, 45 producers
 Loosely tied
 1/3 independent
 1/3 sow center based sows
 1/3 sows with ownership

5. System tied together through:
 Geographical
 Common veterinary support
 Information sharing
 Reproduction
 W-F performance
 Marketing
 Financial
 Some common genetics
 PRRS ARC

6. Historical deficiencies:
Inadequate focus on the w-f production
 Inadequate data/intensity on value of focused
marketing
 Better benchmarking software/data on sow end
 PRRS management an endemic, challenging
frustration

7. Marketing efficiency: $LOT
1. Information focus was on sort loss (the packer’s version of
what’s most important)
2. Key people not receiving information
3. Information arriving too late
4. Information not used as a real-time benchmarking tool
5. Inadequate measurement of the real cost of marketing
mismanagement

8. Marketing keys today:
 We know how much money we are leaving behind through marketing
mismanagement
 The key people know asap, top to bottom
 Progress(or lack of) is easily, regularly monitored
 Excellent benchmarking occurs routinely
 Per pig
 Per load
 Per site
 Per week, quarter, year
 By packer
 Marketing focus and management have improved greatly

9. 40%
45%
50%
55%
60%
65%
70%
75%
2008 2009 2010 2011 2012 2013 2014 2015
% of Pigs in "Ideal" Weight Category
Top Row
Average

10. 40%
45%
50%
55%
60%
65%
70%
75%
2008 2009 2010 2011 2012 2013 2014 2015
% of Pigs in "Ideal" Weight Category
Top Row
Average

11. = $7.82/pig spread

12. = $7.82/pig spread

13. W-f performance benchmarking:
 Historically 75% of costs receiving 25% of focus
 Lack of a centralized data tracking system
 Inadequate control over data integrity
 Timely information not getting to everybody on the team
 Need to turn data into information
 Need to turn information into behavior change

14. W-f performance benchmarking today:
 Centralized – data much more manageable

15. W-f performance benchmarking today:
 Centralized – data much more manageable
 Timely
 Regularly benchmarked

16. W-f performance benchmarking today:
 Information fully understood at the slat level
 Almost excuse-proof
 Improved focus and accountability

17. 2.45
2.50
2.55
2.60
2.65
2.70
2.75
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
WEAN TO FINISH
ADJ* FEED CONVERSION
*Feed conversion is standardized to an out weight
of 270 pounds

18. 1.30
1.35
1.40
1.45
1.50
1.55
1.60
1.65
1.70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
WEAN TO FINISH
AVERAGE DAILY GAIN

19. W-f performance benchmarking today:
 Information fully understood at the slat level
 Almost excuse-proof
 Improved focus and accountability
 Performance and financial scorecard

20. $(13.00)
$(11.00)
$(9.00)
$(7.00)
$(5.00)
$(3.00)
$(1.00)
$1.00
$3.00
$5.00
$7.00
$9.00
21 22 23 24 25 26 27 28 15 29 30 31 32 8 33 34 35 10 36 37 38 3940 19 41 12 42 43444546
W-F $ Advantage/Pig

21. PRRS Area Regional Control(ARC):
 Struggled several years with $5-10/pig performance drag
 Lack of site to site intensity
 Complete lack of understanding of need for regional control
 No dream of possibility of regional effort
 Our own worst enemies with Live Virus Inoculation (LVI)

22. PRRS Management Tools:
1. Regional communication
2. Elimination of LVI
3. Sow herd closures / elimination
4. W-f bubble depopulations
5. Filters
6. Modified Live Vaccine
7. Increased biosecurity intensity; especially transportation

23. PRRS Management Today:
 Excellent progress in a communication network
 A surprising success with a key tool: MLV vaccine
 Reduced severity of breaks
 Significant improvement in control of spread
 85% of pigs in region vaccinated

24. PRRS Management Today:
 A much better understanding of the value of immunity
before and after infection
 Two steps forward, one step back with PRRS
 A real appreciation of the value of trucking biosecurity
 Value transferred readily to PEDV when arrived
 Most of region drinking the Kool-aid

25. 2.45
2.50
2.55
2.60
2.65
2.70
2.75
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
WEAN TO FINISH
ADJ* FEED CONVERSION
*Feed conversion is standardized to an out weight
of 270 pounds

26. 1.30
1.35
1.40
1.45
1.50
1.55
1.60
1.65
1.70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
WEAN TO FINISH
AVERAGE DAILY GAIN

27.  75% of the money is in W-f; it deserves that focus
 Having a good handle on the full value of marketing
mismanagement drives progress
 Intensified w-f benchmarking drives improvement
 Regional PRRS control can significantly improve the
costs of this disease
 Attaching $$ to data changes management behavior

28. Success is a science; if you have the
conditions you get the results.
~ Oscar Wilde

29. Thank you
for your attention