Aging barns plus rising inputs plus decreasing sow numbers — it’s a formula that spells out remodel for many who are trying to figure out their future in the pork industry.
“New construction requires that the integrator increase their sow numbers,” says Stephanie Nicholson, vice president of sales for QC Supply, a multi-branded sales and distribution company. “As we know, it’s the consumer that sets the demand for pork. In order for new construction to happen, we need to add sows, and demand isn’t going up enough to justify that.”
She says this is why more pork producers are looking to remodel instead of building new barns.
“They’re going to be the same or go down as sows produce more pigs,” she says. “A few years ago, 25 pigs per sow was a good number. Now you have to be in that 29 to 32 pigs per sow per year to be in the good numbers.”
Aging facilities built in the late ’80s and early ’90s are in need of upgrades, Nicholson points out. With insurance companies requiring alarm systems, that also means a big part of remodeling centers around adding in new technologies.
“Remodel is such a broad word. Before you start, people need to understand what their end goal is and then consider the best company to use that keeps themselves in tune with their suppliers and what’s out there for equipment and technology,” she says. “You need to find someone who can help you make decisions and bring to the table the different options and why they have those options.”
Before You Start
In a barn remodel, you have to know where you want to be as a customer, Nicholson says. What’s your end goal? What do you want to do? Do you want to know what’s going on in the farm when you’re not there or do you not want to know that? Do you want to be able to control remotely?
“Do you want to be on front end of technology today, knowing that you’re going to probably be good for the good next 15 years? Or do you want to be at the low end of technology, knowing that in five years, they’re probably going to have some new requirements from integrators?” she says.
For Mike and Nick Wenger, co-owners of M&N Ag Systems, this is all about being relevant.
“Are you in it for the long term?” Mike Wenger asks. “Or are you in it for the short term? Do I want to patch this because I don’t want to spend additional funds today, but know I’ll have to spend more money in the long run?”
Answering those big questions will help you determine your direction, he adds. Working closely with QC Supply, which supplies AP equipment for many of the operation’s barn projects, has been helpful in strategizing ideas and making decisions.
Study Up
Price remains a major driving factor when it comes to decisions to remodel, build or get out of business, Mike Wenger says.
“We just got done purchasing a site,” he adds. “One building had fallen. We dismantled the second building. This is a 4,000-head site, and we’re going to have $300-a-pig space in it. New construction is around $425. You just can’t cash flow that.”
From pen configuration to feeder design and from ventilation to repairs, there are a lot of details to sort out for everyone involved. The process can be pretty overwhelming, Wenger explains. That’s why it’s important to do your research ahead of time.
“Start by talking to your integrator (if you have one), and find out what they expect from you,” he says. “There’s a lot of options. We don’t just turnkey one project. We try to integrate different ideas.”
Don’t be afraid to go out and get another quote from somebody else, advises Nick Wenger.
“We do bid against other people, and when we do our bids, we tend to overdo it sometimes because we want them to have the best they can have,” he adds. “Make sure the bid is itemized so you are comparing apples to apples and not apples to oranges.”
The unknowns are the hardest part of a remodel, Nicholson points out.
“What if you take something down and realize there is more you need? It’s what you don’t know that can be hard,” she says. “That’s why having a good relationship with your contractor and choosing one you can trust is so important.”
Read More:
When the Part Breaks: New Warehouse is a Gamechanger for M&N Construction
Grit and Redemption: How the Past Helps a Father and Son Build a Future in Pork
