1. Changes in Management for Pork Contracts Tim Safranski State Swine Breeding Specialist (573) 884-7994

3. Contracting Reduce fluctuation in cash flow Decrease risk (i.e. shared) Share costs Have a guaranteed market Access to $$$

4. Contractor or Contractee?

5. To contract, or not to contract…. Predictable cash flow

6. To Contract, or not to contract…. Predictable cash flow Forces record keeping Predictable cash flow Forces record keeping

7. To Contract, or not to contract…. Predictable cash flow Forces record keeping Production plan and outside assistance Predictable cash flow Forces record keeping Production plan and outside assistance

8. To Contract, or not to contract…. Predictable cash flow Forces record keeping Production plan and outside assistance Strict biosecurity Predictable cash flow Forces record keeping Production plan and outside assistance Strict biosecurity

9. To Contract, or not to contract…. Predictable cash flow Forces record keeping Production plan and outside assistance Strict biosecurity Facilities meet minimum standard Predictable cash flow Forces record keeping Production plan and outside assistance Strict biosecurity Facilities meet minimum standard

10. To Contract, or not to contract…. Predictable cash flow Forces record keeping Production plan and outside assistance Strict biosecurity Facilities meet minimum standard Waste control is legal Predictable cash flow Forces record keeping Production plan and outside assistance Strict biosecurity Facilities meet minimum standard Waste control is legal

11. To Contract, or not to contract…. Predictable cash flow Forces record keeping Production plan and outside assistance Strict biosecurity Facilities meet minimum standard Waste control is legal Consistent genetic source Predictable cash flow Forces record keeping Production plan and outside assistance Strict biosecurity Facilities meet minimum standard Waste control is legal Consistent genetic source

12. Other Considerations Finisher –mixed sex –feed supplied, how to sell corn? –incentives Farrow –replacement rate/culling decisions –breeding system (P = G + E + GxE) –incentives

13. Litter Size Weaned

14. Other Considerations Continued Reliability of other party –company –another farmer Personalities Specialization of labor Long-term asset, short-term contract? IPPA Swine Contract Approaches –(section 5 in notebook) NPPC Guide to contracting

15. Thoughts for Extension Personnel Who are we working for? What is our role? Are costs of production known? Are goals known?

16. Standard Normal Distribution Standard Deviations From Mean frequency