Manage Production Costs for a Profitable Future

The past two years have been challenging for most industries and pork production is no exception. Managing cost of production — from feed to labor to facility costs — has become ever more critical in maintaining a profitable operation. A good way to manage efficiencies in your operation is to compare them with industry benchmarks.

Tom Stein, DVM, senior strategic adviser for Maximus Systems/Maximum Ag Technologies will explain how in his talk at United Pork Americas in Orlando, Fla., on Sept. 7-9, 2022. “We will do a straightforward look at cost of production, but it will be important to also look at what the future holds,” Stein says.

Winner of the 2019 Howard Dunne Award for outstanding contributions to swine production and health, he will focus on benchmarking cost of production in North and South America (Brazil vs. U.S. vs. Canada).

“We’ll pose questions and answers about the key drivers and important questions that producers, families, owners and investors and lenders must continuously evaluate as they consider strategic decisions.”

Challenges and Opportunities

The biggest cost issues facing the industry today involve labor, grain prices and changes in production practices, Stein says. “Labor costs and lack of labor is a concern but is also a big opportunity to look at your business processes with new eyes and maybe make big changes, bring in new technology, experiment with leading-edge technologies.”

He predicts grain prices will continue to be high for the next several years and that consumers will continue to drive change in production practices. “For example, we have Prop 12 in the U.S. or loose housing for sows in general,” Stein says. “And free farrowing in Europe, as well as bans on tail docking and castration only with anesthesia. These practices increase costs without helping improve productivity.”

Stein feels that this year’s United Pork Americas conference provides a valuable chance to discuss the key challenges facing the industry today. “This is an amazing opportunity to meet other producers from across North, Central, and South America as well as to listen to an all-star lineup of speakers taking an Americas perspective on pork production,” he says. “Producers will come away armed with more and better information to guide their business decisions.

Things You May Not Know About Tom Stein

Favorite pork dish: My go-to, ever since a pork producer told me how to cook them, are two-inch-thick Berkshire pork chops done on a grill. High heat to start, sear both sides, turn down the heat and stand the chops up on the bone, leave them for about 20 minutes. Always perfect and very, very tasty.

Education: I received my doctorate in veterinary medicine from the University of Illinois, a masters of science and PhD from the University of Minnesota, and a bachelor’s degree in animal science from the University of Illinois.

Favorite place to travel: I’ve been fortunate that my career has taken me all over the world. I spent three months in Singapore in the 1980s, bringing the PigCHAMP software to that region. But I’d have to say Spain and a tossup between Barcelona and Madrid.

Favorite pastimes: Playing sports and physical fitness — tennis, golf, swimming. I also enjoy travel, especially when I can mix business with pleasure.

Favorite theme park in Orlando: Disney World, the OG theme park. My wife and her family love theme parks, so we’ve been taking our kids and now our grandkids for the past 30 years!

Hear from Dr. Stein and other industry experts during United Pork Americas. Register today at UnitedPorkAmericas.com.

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