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Enterprise Costs

Estimated Cost of Hog Production in Illinois, 2000

NURSERY AND FINISHING COSTS
Table 1 shows per pig costs for finishing hogs.  The nursery column lists costs for raising weaned pigsfrom 10 to 55 lbs.  The finish column lists costs for growing hogs from 55 to 255 lbs.  The total columnaggregates the nursery and finish columns, giving costs for growing hogs in separate nursery andfinishing facilities.  The wean-to-finish column lists costs for hogs grown in one facility.
Table 1.  Costs of Nursery, Finish, and Wean-to-Finish Hog Production.
.      ---------------Nursery  and Finish------------ .
.
Nursery 
    Finish  
.
Wean-to-finish
Item
 10 to 55 lbs.    
 55 to 255 lbs. 
Total
10 to 255 lbs.
Feeder Pig Cost
 ---------------------------------- per pig ----------------------------------      
   Feeder Pig
$30.00       
$45.00      
$30.00     
$30.00      
   Death loss (1)
0.90       
1.35      
1.77     
1.50      
 
Total feeder pig costs
$30.90       
$46.35      
$31.77     
$31.50     
Feed costs (2)
$12.63       
$33.66      
$46.29     
$46.29     
Operating costs
  Utilities, fuel, electricity
$1.00       
$0.65      
$1.65     
$1.65     
  Transportation
0.50       
2.00      
2.50     
2.00     
  Repairs (3)
0.23       
0.64      
0.87     
1.10     
  Veterinary and medicine
1.25       
0.75      
2.00     
2.00     
  Other livestock expense
0.60       
0.60      
1.20     
1.20     
  Insurance and taxes (3)
0.30       
0.89      
1.19     
1.28     
 
Total operating costs
$3.88       
$5.53      
   $9.41     
$9.23     
Investment and labor costs
  Depreciation (3)
$1.45       
$4.05      
$5.50     
$6.67     
  Interest on buildings and equipment (3)
0.80       
2.29      
3.09     
3.60     
  Interest on other capital
0.28       
0.65      
0.93     
0.93     
  Labor
1.60       
3.20      
4.80     
4.30     
 
Total investment and labor costs
$4.13       
$10.19      
$14.32     
$15.50     
Total costs without feeder pig costs
$20.64       
$49.38      
$70.02     
$71.02     
Total costs
$51.54       
$95.73      
$101.79     
$102.52     
Per Cwt. Costs
     ----------------------------- per cwt. sold -------------------------        
  Feeder pig
$68.67       
$18.54      
$12.71     
$12.60     
  Feed
28.07       
13.46      
18.52     
18.52     
  Operating
8.62       
2.21      
3.76     
3.69     
  Investment and labor
0.92       
4.08      
5.73     
6.20     
 
Total costs
$106.27       
$38.29      
$40.72     
$41.01     
 

(1)  Death loss equals 3% in nursery, 3% in finishing, and 5% in wean-to-finish.
(2)  Rations based on 3.0 feed conversion rate, $2.40 corn price, and $160 soybean oil meal price.  Feed conversion rates and prices have large impacts on costs.  See Table 5 (page 6) for impacts.
(3)  See page 9 for facility cost estimates.  All costs based on new facilities with 1,000 head capacity.

  

Department of Agricultural and Consumer Economics    College of Agricultural, Consumer and Environmental Sciences
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