Selling Market Hogs
The right marketing decision, at
today’s tight margins can mean
the difference between profit and
loss. Last time I discussed feeder
pig marketing alternatives.
Market hogs deserve the same
considerations as feeder pigs
before selling. When will you
market them, how will you market
them, and what degree of quality
will make it worth your while?
As with feeder pigs, the decision
as to when to sell hogs should be
thought out in advance.
Remember that the heavier the
hog gets, the less efficient be will
be. And as I’m sure all of you have
experienced first hand, hogs are
discounted when they pass 240
pounds.
Choosing die Right Market Weight
Let’s say the current price for a
210-pound hog is $5O/cwt. That
pencils out to $lO5 per head. What
difference would it make if you
sold him at 230 pounds?
It would take an extra 84 pounds
of feed (F/G of 4.2). With feed
prices at $.09/lb that amounts to
$7.56. The overhead cost for hogs of
this size is roughly $.lB/day. At a
growth rate of 2 pounds per day,
it’ll take 10 days to put on the extra
weight or a total overhead cost
of $l.BO.
So the added cost of pushing this
hog to 230 pounds would be $9.36.
But you’ll be getting another $lO.OO
for the hog (20 extra pounds @
$5O/cwt.). So you’ll make an extra
$.64 per head.
Keep this hog until he reaches
250 pounds and he’ll probably be
docked $2/cwt. Add in the cost of
extra feed and overhead, and you
can expect a four dollar drop in
profits compared to selling him at
210 pounds.
So it appears that the heavier the
hog gets, the slimmer the margin
becomes. Will it always work this
way? Most of the time you’re
further ahead to sell at the lightest
weight your packer will stand. But
to be sure, you’ve got to push that
pencil.
How To Sell Market Hogs
During 1978, 73.8 percent of the
hogs in this country were sold
through direct markets. Another
15.9 percent moved through ter-
Chianina
(Continued from Page D 2)
Clau7
1 Geraldine Popp 2 John Eaton 3 Susan
Belford
ClaSSt
1 Douglas Eastep 2 Leigh Ann Tamplaton 3
Kern Kohr
Class 9
l Andrea Richards 2 John McKotch 3 Scott
nertzog
Grand Champion Steer
Andrea Richards
Reserve Champion Steer
John McKotch
Jud( *n*
Men's DW
Lance Kautl 2 Roy Weaver 3 Barry
Longenecker
Ladles Dtv
Longeneck Sunday 2 Sara Fought 3 Jackle
Junior Div
1 Chris Hopple 2 KnstieKohr 3 Jan Waltz
Team Judging
Cambna'c’*'' 13 "' 1 C ° Un ’ y 2 Lanca,er County 3
Showmanship
i r Senior
Godfrey 5 H ° PPl * 2 Ma,g3 '" Herr 3 Dona,d
. Intermediate
Christman EB, ° n 2 AndrM Rlchards ' 3 Greg
I n i. Junior
uar by Smith, 2 Jodie Weaver 3 Stacy Suftel
i o ■. w, **ht Gueuing Contest
John Eastep PB “ ,,i '' 2 B *" y Lon *»"« ker 3
minals, while only 10.3 percent
were marketed through auctions.
Of those hogs sold direct, only 13
percent were sold grade and yield.
What’s the best way to go today?
Direct markets (buying stations)
are popular for several reasons.
First, producers know exactly
what their hogs will bring. Second,
there’s no commission. And, of
course, checks are written on the
spot.
- The lack of surprises makes the
direct method seem a lot better
than the auction. But what about
selling grade and yield? The an
swer will depend on whom you ask.
Some producers rave about grade
and yield. With the right hogs and
the right program it can make you
a lot of money.
But other producers aren’t so
satisfied. The reasons why were
outlined in a recent report from the
USDA. All in all, the report is
rather critical, primarily because
grade and yield statements can be
misleading. For example, the
statement may indicate you were
paid a dollar or two over the “base
price,” when in fact you didn’t get
any more for your hogs than if
you’d sold them elsewhere.
And, of course, every grade and
yield program is different. That’s
evident from the USDA report.
And having recently contacted
Eastern packers, I have to agree.
Some packers here base premiums
on dressing percent. Others use
backfat measurement as the in
dicator. And some subjectively
evaluate muscling and fat to arrive
at price discounts or premiums.
So how can you tell what you’re
getting? One way is to sell hogs
grade and yield and simply divide
the dollars you receive by the total
live weight. Compare this price per
pound with the local live markets.
Another alternative is to sort
your hogs into similar groups. Sell
some direct, sell some grade and
yield, and sell some through the
auction, all on the same day or
during the same week. If you’re
like other producers who do this
regularly, you’ll come up with
some interesting results.
Market Hog Quality
Today hogs are sold by the pound
with little regard to quality.
That’s OK for now, but it sure
won’t improve our long-run image
with the consumer. Our current
USDA grades are useless, since
more than 95 percent of all hogs
will be U.S. No. 1 or 2. These
grades are being revised. But
revision alone isn’t the answer.
Swine producers need an incentive
to improve quality. The only thing
that will really work is to pay a lot
more for the good hogs and a lot
less for the poor ones.
In summary, the best market
manager is the one who makes the
best of what he has. You can’t
predict markets. Even the folks
who make a living at that business
aren’t doing so hot lately. But you
can take current information and
use it to your advantage. To
calculate the best market weight,
know your production costs. To
arrive at where to sell, know your
transportation costs. And to decide
how to sell, stay on top of every
market price.
'Green-broke' calves
stage field day at
BENTON - FFA and 4-H
members from six counties con
verged on the Shady Hollow Angus
Farm of Chuck and Kay Chapman,
Benton, last Saturday for what
may be the only event of its kind
this year. The event was called the
Susquehanna Cattlemen’s
Association First Annual “Little I”
and Field Day.
Following a fitting demon
stration at 9 a.m., 20 youngsters
drew lots for a “green-broke”
Angus calf. Though many of the
entrants had never held a haltered
calf, they were required to wash,
clip, groom and teach their calves -
to lead in time for a fitting and
showmanship contest at 3:30 that
afternoon.
The morning hours more closely
resembled a rodeo, as calves
alternately locked all four legs and
then exploded in all directions.
Many of the more than 70 adults
from Columbia, Montour,
Lycoming, Union, Snyder and
Northumberland Counties ex
pressed doubts that a show would
ever take place.
Patterned after similar events
staged by dairy clubs throughout
the state, the idea was first
presented to the Susquehanna
Cattlemen’s president, Polled
Hereford breeder Richard
LIVESTOCK
18 states represented
at Nat'l Junior Shorthorn Show
LOUISVILLE, KY - Sherri
Rose, Logansport, Ind., walked
away with the top honors at this
year’s National Junior Shorthorn
Heifer Show with her entry HS
Desert Playmate. HS Desert
Playmate was selected as the
junior and grand champion female
in the show, topping entries from
18 states by over 130 exhibitors.
She is an April 18,1983 daughter of
SRS Instant Replay 102 X x and out
of HS Desert Bloom 163rd car. She
posted a hip height of 54.25 inches,
weight of 1,065 pounds, and a
weight per day of age (WDA) of
2.35 pounds.
One hundred forty-eight heifers
and 13 steers were shown in the
1984 National Junior Shorthorn
Heifer Show and steer show held
July 17 and 18 at the Kentucky Fair
and Exposition Center, Louisville,
Ky. The two-day event was judged
by Mr. George Ellis, Columbus,
Mont., and Mr. Rex Tnbbett,
Linden, Ind.
Reserve grand champion honors
went to Sarah Schilling, Lake
Fork, 111, on her summer cham
pion female. Green Ridge
Covergirl ET is a July 4, 1983
daughter of Mill Brook Ransom G-
Nine 2975 and CH Mario’s Maid ar.
Performance data on this female
included a weight of 965 pounds, a
WDA of 2.56, and a hip height of 53
inches.
Champion bred and owned
female was also the reserve junior
champion female in the show. JB
Lancaster Farming, Saturday, August H, 1984-D3
Francola, by Columbia County
extension agent Robert Huston.
During the discussions that
followed, the board of directors
determined that risk could be
minimized by tying the calves out
for three hours each night for the
three nights prior to the event, and
by instructing the youngsters to
avoid their animal’s feet.
Those youngsters below the age
of 13 were teamed two-per-calf
with an adult sponsor who was to
instruct and assist the young
showmen with the more delicate
and difficult elements of clipping.
The seniors worked alone under
the watchful eye of York County
resident of Bill Wise, the
demonstrator and judge. Bill had
been selected as a result of having
recently been named grand
champion showman in four species
at the 1984 Little “I” at Penn State
where he is an animal production
major. Bill is also the vice
president of the Pennsylvania
Junior Angus Association.
When 3:30 rolled around, the
judge knew he had his work cut out
for him, and the audience knew
they had underestimated the skill
and tenacity of these young people.
One well-groomed calf after
another walked into the makeshift
Dee Dee x is owned and exhibited
by Jerry Ross Bedwell, Okeene,
Okla. Sired by Deerpark Leader
13th, she is out of Seven T’s HB
Deborah x, and was bom March 27,
1983. Her show day weight was
1,085 pounds, her hip height was 54
inches, and she had a WDA of 2.28
pounds.
Senior champion female was
also shown by Sarah Schilling. Her
entry, Green Ridge Lassie Flora,
is a February 24,1983 daughter of
Mill Brook Ransom G-Nine 2975
and out of CH Lassie Flora. Actual
weight for the entry was 1,130
pounds, a hip height of 54.75 inches,
and a WDA of 2.24. Reserve senior
champion female was 3F Miss
Queen 3J x, shown by David
Bishop, McKinney, Tx. Born
January 3, 1983, 3F Miss Queen
posted a weight of 1,145 pounds, a
height of 55 inches, and a WDA of
2.05 pounds. Her sire is WO
Dividend 3J and her dam is 3F
Heckland Queen x.
Reserve summer champion
female was shown by Rob Johnson,
Fredencktown, OH., on Mill Brook
Louise 83. Mill Brook Louise 83 is a
July 5, 1983 daughter of GM Irish
Special and out of Mill Brook
Louise 81. She posted a weight of t
805 pounds, a hip height of 51.25
inches, and had a WDA of 2.14
pounds.
Calf Champion female was
shown by Shad Marston, Canton,
Kans. His entry, Fieser’s Rose
Molly x, was born September 13,
and kids
Benton
show ring clearly under the control
of the proud young person at the
halter.
The results were as follows
Junior division fitting: 1. John
George and Nathan Hampton,
Columbia Co. 2. Doug Marquardt,
Lycoming Co.
Senior division fitting: l.Heather
Ream, Lycoming Co. 2. Ann
Haladay, Columbia Co.
Junior division showmanship,
group one: l.John George, 2. Doug
Marquardt.
Junior division showmanship,
group two: 1. Faith George,
Columbia Co. 2. Nathan Hampton,
Columbia Co.
Senior division showmanship:
l.Kristy Harding, Lycoming Co. 2.
Ann Haladay.
In addition, each participant
received a halter,with all awards
made available by donations from
area ag businessmen.
When asked after the event if it
was worth all the work, Chuck and
Kay Chapman said that watching
all the youngsters leam, including
their own 9-year-old, Eddie, not
only made it worthwhile, but they
would do it again in a minute. This
year’s hosts are eagerly awaiting
the Second Annual “Little I” and
Field Day.
iPlpn
m
1983. She weighed 685 pounds, has a
height of 49.50 inches, and posted a
WDA of 2.24 pounds. Sire of the
female was Fieser’s King Mont
Adair and she is out of Fieser’s
Roan Molly. Following Marston
with the reserve calf champion
female was Robert Masterson,
Guthrie, Tex. His entry,
Sutherland Becky 439 x, was sired
by Highfield Rathcannon and she
is out of Sutherland Becky 865 x.
She had a weight of 765 pounds,
stood 49.50 inches tall at the hips,
and had a WDA of 2.56 pounds.
In the steer show, two divisions
were exhibited-progress and
finished steers. Judge Tribbett
made the placings in this show.
Champion progress steer was
shown by Vanessa Gordon, Mid
dletown, 111. Sired by Deerpark
Leader 13th, the July 16,1983 steer
weighed 905 pounds, stood 53 in
ches tall at the hips, and had a
WDA of 2.49 pounds. Reserve
champion in the progress steer
division was an entry from Janet
Freed, Chickasha, Okla. Also sired
by Deerpark Leader 13th, this C£.lf
was bom September 10, 1983, and
weighed 695 pounds. He was 50
inches tall at the hips, and had a
WDA of 2.25 pounds.
The champion finished steer
came from Jeff Swalve, Shannon
111. His entry weighed 1,260 pounds,
stood 56.75 inches tall at the hips,
and had a WDA of 2.74 pounds.
Sired by JBS Astronaut, he was
. (Turn to Page D 4)
■iff