Economic considerations for swine production systems
Jon Rausch
The Ohio State University

The evaluation of different feeder pig production systems must take into account non-market impacts, such as odors, pathogens, particulate matter, as well as production parameters, revenues and fixed costs.  The three systems studied were the: 1) conventional system (CS) with full confinement, liquid manure and mechanical ventilation; 2) high-rise hog (HRH) system with full confinement, solid manure and mechanical ventilation; 3) hoop house (HH) system with full confinement, solid manure and natural ventilation.  The production factors analyzed included starting and ending weight, days on feed, average daily gain, feed efficiency, days to market, mortality, and turns/year.  Although the HRH demonstrated higher daily gain, fewer days to market and higher feed conversion, it had the highest fixed costs and electricity/fuel costs.  When manure handling cost, including bedding, hauling and equipment, were considered, the HRH had the lowest cost.  In the final analysis, the return to management per pig was highest for the HH, primarily due to the low capital investment required.  However, this analysis does not account for potential costs to protect the environment or address neighbor’s concerns.  For example, the HRH system reduces odors by 53%.  To achieve a comparable reduction in a CS, biofiltration, at a cost of $2.44 per pig space, would be needed.  As environmental and social issues become more prevalent, their costs will need to be considered.

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