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DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
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KEYNOTE...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
TODAY’S DI...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
OUR COMPAN...
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PART OF MU...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
BUSINESS O...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
• Leading ...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
OUR PATH T...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
A BEGINNIN...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
BECAME PIG...
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RAPIDLY GR...
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…AS WE DIV...
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1851-1990 ...
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THE COMPET...
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DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
CONSUMER D...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
THIS CREAT...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
OUR PATH F...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
GROWING SU...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
ENGAGED LE...
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LASER-FOCU...
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BUSINESS/I...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
…AND VALUE...
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CHICKEN’S ...
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2004 2016
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2004 2016
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2004 2016
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VALUE OF N...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
THESE ATTR...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
TODAY TO 1...
DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
A VALUE IN...
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ANTIBIOTIC...
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WITHIN-LIN...
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DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC.
Dr. Bradle...
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Dr. Bradley Wolter, Dr. Aaron Gaines, Ms. Julie Berling - Growth Of A Pig Production Business: Consumer Challenges, Strategy, and Opportunities

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Growth Of A Pig Production Business: Consumer Challenges, Strategy, and Opportunities - Dr. Bradley Wolter, President, Dr. Aaron Gaines, VP, of Technology & Support Operation, and Julie Berling, Senior Director, Strategic Insights and Communications, The Maschhoffs, from the 2016 Allen D. Leman Swine Conference, September 17-20, 2016, St. Paul, Minnesota, USA.

More presentations at http://www.swinecast.com/2016-leman-swine-conference-material

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Dr. Bradley Wolter, Dr. Aaron Gaines, Ms. Julie Berling - Growth Of A Pig Production Business: Consumer Challenges, Strategy, and Opportunities

  1. 1. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Cu KEYNOTE: GROWTH OF A PIG PRODUCTION BUSINESS CONSUMER CHALLENGES, STRATEGY AND OPPORTUNITIES Dr. Bradley Wolter, President September 19th, 2016
  2. 2. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. TODAY’S DISCUSSION • My Approach & Presenters • The Maschhoffs TODAY • Our PATH to TODAY – The Maschhoffs Story – Agriculture’s Story – Consumer Trends • Our Path FORWARD: 2017 & Beyond – Chicken’s ABF Journey – Value Innovation POV • Q&A/Discussion Presented 09/19/16 2
  3. 3. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. OUR COMPANY TODAY • 5th Generation Family-Owned • HQ in Carlyle, IL • Largest Network of Family- Owned Pig Farms in North America – Approx. 750 production sites and 550 family farm partners • About 5 Million Market Pigs to 4 Customers • Decentralized Operations Span 9 States – About 1,300 employees – 218,000 sows – 4 feed mills, 4 transportation washes Presented 09/19/16 3
  4. 4. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. PART OF MULTI-PROTEIN BUSINESS Presented 09/19/16 4 • Maschhoff Family Foods is our holding company • Formed in 2013 with the purchase of GNP Company • As part of a diversified business we provide healthy proteins that enrich lives
  5. 5. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. BUSINESS OVERVIEW Presented 09/19/16 5 Operations  Business Units • Largest family-owned hog production network in North America, 3rd largest overall • Largest fully-integrated fresh chicken producer in the upper Midwest  Total Business • Approx. 3,000 Employees • About 900 Family Farm Partners • 6 Feed Mills • FY15 Net Sales of About $1.3 B  69% Pork/31% Chicken Highlights 1 Calculated using LTM sales information for GNP Company.
  6. 6. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. • Leading meat consumed on the globe • Global consumption driven by sustained social economics • Asia likely to import significant amounts of pork • U.S. remains leading potential low-cost producer • Evolving technology/industry supply chain structure • Commodity price volatility remains WHY HOG PRODUCTION EXCITES US Presented 09/19/16 6 CHINA: Continued GROWTH Projected SOURCE: Production, Supply and Distribution database and projections. March 2014.
  7. 7. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. OUR PATH TO TODAY Presented 09/19/16 7
  8. 8. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. A BEGINNING LIKE MOST OTHERS… Presented 09/19/16 8 2017 1851 -1990
  9. 9. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. BECAME PIG PRODUCTION SPECIALISTS… Presented 09/19/16 9 20171851-1990 1991- 2003
  10. 10. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. RAPIDLY GREW IN PIG PRODUCTION… Presented 09/19/16 10 1851-1990 2017 2004- 2014 HEARTLAND PORK
  11. 11. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. …AS WE DIVERSIFIED Presented 09/19/16 11 1851-1990 2017 2004- 2014 4 MAIN Packers & Processors
  12. 12. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. 1851-1990 2017 R DECENTRALIZED AND CUSTOMER FOCUS… Presented 09/19/16 12 2015- 2016
  13. 13. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. THE COMPETITIVENESS CROSSROADS Presented 09/19/16 13 1851-1990 2017 HEARTLAND PORK
  14. 14. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Mid- 1900s FACE & PRODUCTIVITY OF AG Presented 09/19/16 14 2017 One able to feed Of U.S. pop in ag One able to feed Of U.S. pop in ag
  15. 15. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Mid- 1900s FOOD SYSTEM SCRUTINY Presented 09/19/16 15 2017
  16. 16. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. CONSUMER DEMOGRAPHICS, TRENDS & FOOD MOVEMENTS Presented 09/19/16 16 2017 Mid- 1900s
  17. 17. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. THIS CREATES HARD REALITIES FOR MEAT PROTEINS Presented 09/19/16 17 Misinformation & Distrust of Ag & Empowered Non-Meat Movement Consumers Disconnected
  18. 18. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. OUR PATH FORWARD: 2017 & BEYOND Presented 09/19/16 18
  19. 19. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. GROWING SUSTAINABLY Decentralized production system consists of five smaller, largely independent, geographically-based regions. • Each region: – Operates under guidance of a General Manager (GM) – Manages about 40,000 sows – Is supported by dedicated resources in the areas of facility repair and maintenance, pig movement, herd health, and human resources Presented 09/19/16 19
  20. 20. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. ENGAGED LEADERS & PEOPLE LANA SCHNEIDER Manager of Administration Regional General Managers (GMs) DR. AARON GAINES VP, Technology & Support Operations JEFF DIESEN CFO MORGAN DUGAN Sr. Director, Supply Chain DR. BRADLEY WOLTER President PATRICIO VIDAL Great Plains Region DR. SCOTT STEHLIK Heartland Region & Technical Operations SAM DEHAAS Great South Region PAUL WETTSTEIN Central Prairie Region JULIE BERLING Sr. Director, Strategic Insights & Communications Presented 09/19/16 20
  21. 21. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. LASER-FOCUSED ON HELPING OUR CUSTOMERS SUCCEED Presented 09/19/16 21
  22. 22. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. BUSINESS/INDUSTRY SYNERGIES Presented 09/19/16 22 LeadershipDevelopment Innovation AnimalCare InformationSystems Customer Focused Customer Service Excellence Respect Integrity Safety Innovation Quality Opportunities for Synergy and Growth MIDWEST’S LEADING CHICKEN PRODUCER Be the 1st choice nationally for fresh ideas in natural chicken. LARGEST FAMILY-OWNED PORK PRODUCER IN NORTH AMERICA To become the most cost-efficient, anchor supplier of hogs to U.S. pork packers and processors.
  23. 23. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. …AND VALUE-DRIVEN INNOVATION Presented 09/19/16 23
  24. 24. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. CHICKEN’S PATH TO NAE (NOT ABF) Presented 09/19/16 24 2004 2016 GNP Company’s Julie Berling, Sr. Director of Strategic Communications & Insights and Bill Lanners, Sr. VP of Operations
  25. 25. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. 2004 2016 EARLY INDICATORS… Presented 09/19/16 25 2004 0% of flocks NAE
  26. 26. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. 2004 2016 LAUNCHED, THEN SHIFTED GEARS… Presented 09/19/16 26 2005 -2006 10% of MN flocks NAE
  27. 27. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. 2004 2016 DEFINING AN EMERGING CATEGORY… Presented 09/19/16 27 30% of MN flocks NAE “No antibiotics-ever” means NONE, NEVER 2008
  28. 28. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. 2004 2016 MARKET DEMAND GROWS… Presented 09/19/16 28 2009 -2014 30-75% of MN flocks NAE; 20% in WI
  29. 29. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. 2004 2016 FROM NICHE TO MAINSTREAM… Presented 09/19/16 29 2015 100% of flocks NAE in MN; 20% in WI
  30. 30. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. 2004 100% NAE BY 2019, THE MOVEMENT MARCHES ON Presented 09/19/16 30 100% of ALL flocks NAE by 2019 2016
  31. 31. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. VALUE OF NAE OVER CONVENTIONAL Presented 09/19/16 31  Just BARE has grown double-digit YOY.  Projected to be 28% of TOTAL branded sales in FY17. 28% of TOTAL branded sales in FY17 5% Organic The CHALLENGE: Selling the whole bird at enough of a premium to offset additional costs.
  32. 32. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. THESE ATTRIBUTES COST ABOUT + More expensive feed + Slight decrease in bird performance + Increased sanitation requirements + Heightened biosecurity + Slightly less bird uniformity + More barn-level interventions + Reduced barn density + Lighting standard compliance + Stricter product segregation protocols + Annual auditing & licensing fees Presented 09/19/16 32
  33. 33. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. TODAY TO 100% NAE • Is it sustainable in the long-term? • What do we see being the additional challenges? • What pitfalls can we expect on this journey? Presented 09/19/16 33 HOW MUCH HARDER WILL IT BE TO MAKE THE ECONOMICS WORK FOR HOGS?
  34. 34. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. A VALUE INNOVATION POV Presented 09/19/16 34 Dr. Aaron Gaines, VP/Technical & Operations Support at The Maschhoffs
  35. 35. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. ANTIBIOTIC-FREE CASE STUDY Presented 09/19/16 35 Pork Packers & Processors
  36. 36. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Presented 09/19/16 36 • Prevalence of endemic and epidemic disease challenges have increased – Increased density of pigs in key growing geographies – Health destabilization – New epidemic disease outbreaks – Commingled pig flows • Industry reducing antibiotics already • Need to maintain high standards of animal care BUSINESS REALITIES
  37. 37. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Presented 09/19/16 37 • Need to determine increased cost of antibiotic-free (ABF) program – 114% to 121% higher COP based on Internal modeled estimates – The major economic driver: the impact on pre- and post-weaning mortality rates – Past tendency has been to underestimate the “true” costs of these programs after system implementation • The Critical Question: How do we optimize ABF so it is sustainable longer-term? – This is not something the veterinarian and nutritionist are going to sort out by themselves OUR APPROACH & CRITICAL Q Said that meat & poultry raised without routine use of antibiotics should be available in their supermarket. SOURCE: https://www.nrdc.org/sites/default/files/antibiotic-free-meats-CS.pdf
  38. 38. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. DEMANDS A MULTI-FACETED APPROACH Presented 09/19/16 38
  39. 39. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Presented 09/19/16 39 ANTIBIOTIC STUDY OVERVIEW • Trial carried out from Jun-Nov 2014 • Randomized complete block design using 2 treatments* – Treatment 1: Control – Treatment 2: No antibiotics—from weaning to harvest • Used a total of 32 pens per treatment with 30 pigs per pen • All pigs vaccinated for PRRS 3 weeks post-weaning, and tested positive for SIV and M. Hyopneumoniae * Note: All piglets were given Excede at processing. Antibiotics were used therapeutically for all sows and piglets during lactation.
  40. 40. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Presented 09/19/16 40 ANTIBIOTIC STUDY RESULTS ITEM CONTROL NO ANTIBIOTICS P-VALUE Number of pens 32 32 - Number of pigs 960 960 - Body weight, lb Start 14.1 14.1 >0.1 End 281.3 283 >0.1 Within-pen CV, % Start 19.3 19.6 >0.1 End 9.8 10.2 >0.1 Average daily gain, lb Live 1.75a 1.68b <0.05 Carcass 1.28a 1.22c <0.05 Average daily feed intake, lb 4.16a 4.09b <0.05 Gain: feed, lb:lb Live 0.421a 0.412b <0.05 Carcass 0.307a 0.299b <0.05 Morbidity and mortality, % 6.5b 14.1a <0.05 a,bMeans with difference superscripts are different (P<0.05).
  41. 41. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Presented 09/19/16 41 • Develop feeding programs that reduce changeover costs at the feed mill (i.e. # of diets in phase feeding program) • Identification of feed additives and/or ingredients that improve pig health • Leverage antibiotic alternatives to offset pig growth and feed conversion impact of ABF EXAMPLE 1: NUTRITION
  42. 42. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Presented 09/19/16 42 • Identification of source flow(s) best suited for ABF • Increased diagnostic testing to manage disease risk for given source flow(s) • Implementation of more advanced biosecurity programs or technologies (i.e. filtration) to manage epidemic disease risk • Reduce and/or eliminate disease pressure associated with endemic disease by leveraging new or existing health product technologies EXAMPLE 2: HEALTH
  43. 43. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Presented 09/19/16 43 • Need to understand what genetic lines are better suited for ABF • Within genetic line need to understand what individual sire(s) may be better suited for ABF EXAMPLE 3: GENETICS
  44. 44. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. SIRE LINE DIFFERENCES IN WTM MORTALITY Presented 09/19/16 44 • Raw values from sire line 9, expressed as deviation from the mean line value • Range in mortality across sire lines = 2.95% -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 A B C D E F G WTMMORTALITY,DEVIATIONFROMMEAN(%) SIRE LINE
  45. 45. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. WITHIN-LINE SIRE DIFFERENCES IN TOTAL PROGENY MORTALITY, % Presented 09/19/16 45 • Raw values from sires currently evaluated in the CTH, expressed as deviation from the mean line value • Range in total combined mortality (pre-wean + post-wean) across sire lines = 24.69% -15% -10% -5% 0% 5% 10% 15% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Pre-Wean Mortality Post-Wean Mortality Total Mortality
  46. 46. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Presented 09/19/16 47 • Need to understand housing requirements for ABF (i.e. stocking density) – Mortality and morbidity rate tends to increase at floor spaces below 6.0 ft2 – Is this response different for ABF? • Redefine barn design specifications to facilitate animal care practices associated with ABF program • Defining a flow strategy to reduce fill time by right-sizing our BTW and WTM assets for ABF • Potential segregation of Parity 1 offspring due to higher mortality rates EXAMPLE 4: HOUSING
  47. 47. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Presented 09/19/16 48
  48. 48. DOCUMENTISPROPRIETARYANDMAYNOTBEUSEDORDISTRIBUTEDWITHOUTEXPLICITAPPROVALOFTHEMASCHHOFFS.©2016THEMASCHHOFFS,LLC. Dr. Bradley Wolter PRESIDENT E: BRADLEY.WOLTER@PIGSRUS.NET

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