Production budgets

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Business Negocio Projectmanagement Gestión de proyectos economy economía investment inversión Costs Los costos Price Precio Economics Ciencias económicas Depreciation Depreciación Rate Of Return Tasa de retorno Production Producción Manufacturing Production Budget Presupuesto de producción manufacturera Lb Pig Cerdo Labour Economics Economia laboral production budget Presupuesto de produccion

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The following are assumed: Assumptions for Producing Niche Market Feeder Pigs Gestating sow feed 5 lb/d Lactating sow feed 16 lb/d Sow weight change 0 lb Litters per year 2 / sow Weaned pigs 7/ litter Lactation length 42 d Weaning weight 40 lb/pig Annual sow replacement rate 10 Market value of a replacement gilt 200/hd Price of corn 3.65/bu Price of soybean meal 250.00/ton Price of base mix 0.40/lb Bedding use, cornstalks 1500 lb/yr Bedding use, oat straw 500 lb/yr Price of cornstalks 30.00/ton Price of oat straw 50.00/to Page 3 NPP 120–2007 67.23 90.85 Operating cost calculations Feed 1 bu × 3.65 /bu = 139.22 56 bu 1 ton SBM : 517 lb × × 250.00 /ton = 64.63 2000 lb Base mix : 96 lb × 0.40 /lb = 38.40 Corn : 2136 lb × Feed Costs = 139.22 + 64.63 + 38.40 = 242.25 Bedding Cornstalks : 1500 lb × Oat straw : 500 lb × 1 ton × 30.00 /ton = 22.50 2000 lb 1 ton × 50.00 /ton = 12.50 2000 lb Bedding Costs = 22.50 + 12.50 = 35.00 Replacement gilts 50 sows in herd × 10 replacement rate = 5 gilts annually 5 gilts × 200.00 / gilt = 1000.00 replacement cos ts 1000.00 ÷ 50 sows = 20.00 annual replacement cos ts per sow Operating interest Operating Interest = Operating costs excluding labor × Annual interest rate × Length of production 341.45 × 8 / yr × 1 yr = 27.32 Labor 7.0 hr / sow × 15.00 / hr = 105.00 Fixed costs calculations Facility and equipment investment Gestation hoop barn and farrowing facility (New gestation hoop equipment and farrowing facility / expected useful lifespan) / number of litters per sow space 850 / 15 years = 56.67 per sow space / 2 litters per space annually = 28.33 per litter Page 4 NPP 120–2007 Example Budget for Producing Niche Market Feeder Pigs Annual Operating Costs per sow per litter Feed 242.25 121.13 Bedding 35.00 17.50 Replacement gilts 20.00 10.00 Fuel, repairs, utilities 14.40 7.20 Veterinary and medical 19.80 9.90 Insemination supplies 10.00 5.00 Operating interest 27.32 13.66 Labor 105.00 52.50 473.77 236.89 Fixed Costs 56.67 28.33 Total

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