When you find a few quiet moments to reflect on the mysteries of life and the complexities of pig production, consider this question: What characteristics define the profit-optimal pig? Notice that this question doesn’t specify whether it’s a finished pig, a nursery pig, a weaned pig or a sow. That distinction, or lack thereof, highlights a broader, more critical inquiry.
If there’s an optimal pig for each phase of production (a local optimum), how confident can we be that the entire production chain is geared toward producing the most profitable pig overall (a global optimum)? Put simply: Is it better for each production phase to operate as an independent all-star, or should they function as team players working toward a shared, higher goal?
The Profit-Optimal Pig
Denmark offers a compelling case study in the local versus global optimization challenge. Danish producers are renowned for their rigorous pursuit of pigs per sow per year (PSY) as the primary metric of success. While a high PSY may be ideal for operations focused on selling weaned pigs, producers outside Denmark who finish those piglets often struggle to achieve optimal outcomes. In this scenario, the local optimum for one phase undermines the potential of the next. To avoid such pitfalls, we must thoughtfully examine the profit-optimal pig and what goes into producing it.
This optimal pig has real and definitive characteristics. It must be alive at the time of delivery, an obvious but important point, with specific traits: a target weight, muscle and lean composition, growth rate, feed efficiency and more. Once we define what the global profit-optimal pig is, the next step is to identify the contributing factors. These include genetics, barn environment, wean age and weight, sow parity, nutrition, health status and more. By starting with the end goal and working backward, we can assess whether each phase of production supports the creation of that pig or if it’s inadvertently chasing a lesser, locally optimal goal.
Quality Vs. Quantity
The sow farm emerges as the critical battleground in this pursuit. Despite its central role in the production chain, the industry often overlooks the connection between sow performance and the final value of the pig at finishing. Even when we conceptually link the sow farm to finishing, we face limitations in connecting a specific finishing pig to a specific sow. Key performance indicators, financial incentives and technologies are currently focused on weaned pigs exiting the farm, with little regard for their downstream impact. If the piglet meets the minimum weight requirement, it moves to the next phase of production, often without sufficient consideration of whether it has been set up for long-term success.
It’s time for a shift. Sow performance metrics must be linked to outcomes further along the production line. Every sow farm engages in an implicit trade-off between piglet quantity and quality, whether they realize it or not. Striking the right balance is the key to unlocking greater profitability through global optimization. Our metrics, economic incentives and technologies need to reflect this reality, aligning every stage of production toward the common goal: the profit-optimal pig.
Dennis DiPietre (left) and Lance Mulberry are economists with KnowledgeVentures LLC.
