MARKETING SWINEAnimal Science 1 Unit 25

Objectives

Describe 3 methods of marketing hogs List and describe the grades of market

hogs List and describe grades of feeder pigs

Kinds of Markets

Direct Terminal Auction Some producers practice group

marketing through one of the above 3 methods

Direct Markets Involves selling to a packing plant, order

buyers or country buying station Accounts for the majority of the hogs sold in

the US Producers deal directly with buyer and must

possess selling skills and knowledge of the markets to be successful in getting the best price

AdvantagesShorter transport distancesLess animal shrinkage

Terminal Markets Hogs are consigned to a commission firm Less than 1% of the slaughter hogs sold in

the US Trend in recent years has been away from

terminal markets and toward direct marketing

Usually several buyers competing for hogs Prices may vary more widely than in direct

market due to the number of hogs coming on the market on a given day

Auction Markets Important in some areas Small percentage of hog sales Not widely uses in the major hog producing

states Producers are limited to sale days only Low transportation cost and shrinkage due

to markets being in the area Selling cost involved with terminal and

auction markets are commission, insurance, yardage and feed

Group Marketing (X)

Established by major farm organizations Group negotiates contracts with packers

to supply hogs Basic purpose is to obtain higher prices Biggest advantage is increased

bargaining power

MARKET CLASSES AND GRADES

Slaughter & Feeder Swine Slaughter swine- Those that are killed

and sold as meat Feeder swine- Those that are sold and

fed to higher weights before slaughter

5 Classes of Slaughter and Feeder Swine Barrow Gilt Sow Boar Stag

Grades

Only given slaughter barrows and gilts based on carcass quality and yield of

the four lean cutsHam, Loin, Picnic Shoulder, Boston Butt

Acceptable Carcasses

Bellies are at least slightly thick overall and not less than 0.6 thick at any point

Other factors used to determine quality areAmount and distribution of external finishFirmness of fat and muscle

Official USDA Grades

US No. 1—less than 1.00 inch of BF US No. 2—1.00 to 1.24 inches of BF US No. 3—1.25 to 1.49 inches of BF US No. 4— 1.50 inches or over of BF US Utility Estimated back fat thickness over the

last rib and muscling scores are used to determine the official grade

Fig 25-4 p. 479

Slaughter Barrows and Gilt Grade Descriptions See p. 479

Slaughter Sow Grades

US No. 1– 1.5 to 1.9 inches of BF US No. 2– 1.9 to 2.3 inches of BF US No. 3– 2.3 or more inches of BF Medium –1.1 to 1.5 inches of BF Cull– Less than 1.1 inches of BF See text p. 479-480 for descriptions of

the US Slaughter Sow Grades

FEEDER PIG GRADES

Feeder Pig Grades

US No. 1 US No. 2 US No. 3 US No. 4 US Utility US Cull Fig 25-5 p. 481 P. 481 for descriptions

Weight and Time to Sell Traditional recommendation is to sell slaughter hogs

at 200-220 poundsThis was based on (1) research indicated that feed costs

per pound of gain increased rapidly above 220 pounds and (2) much of the weight added over 220 pounds was fat.

Recent research however indicates that 4 factors should be considered1. Type of Hog

2. Hog-feed price ratio

3. Amount of discount for heavier hogs

4. The time of year when hogs are marketed See p. 481-482

Shrinkage Weight loss that occurs during shipping Distance to market is one of the most

important factors in determining the amount of shrinkage

2% can be expected regardless of distance due to sorting, handling, loading and hauling and takes place in the first few miles

Other factors that increase shrinkageRough handlingTemperature (below 20°F and above 60°F)

Summary Most hogs are marketed directly in the US, smaller

numbers are marketed through terminal markets and by auction, some group marketing has also been established to help get higher prices

Most hogs are sold on the basis of weight Producers of quality hogs can get more by selling on a

yield and grade basis Hogs are classified according to sex, weight, and

quality. Grades are based on USDA standards and are used for

both butcher and feeder hogs. Grades are based upon the quality of lean meat and percent of the 4 lean cuts that the carcass will produce

Summary It has been traditionally recommended to

market hogs at 200 to 220 pounds However other factors such as hog-feed

prices ratio, discounts for heavy hogs and seasonal prices should be considered. Hog prices tend to be lower in early spring and higher in the summer.

Shrinkage increases as moving distance increases. Careful handling to reduce stress can also help to reduce shrinkage and other losses.

Assignment

Rest of the Week Wednesday- Hog Anatomy Quiz Thursday- Watch Hog Slaughter video

and complete questions Friday- Complete questions for Unit 25:

Discussion Questions 3, 5-9, 12-14 Review 1-12 due Monday Oct 25.

Test next Tuesday