Once individual data is made available to the producer, steps can be taken to begin reducing variation within production. Figure 4 shows individual pig data from a US production system with feedback from production experts on the likely causes of why pigs had subpar performance. Two of the three primary causes of profit reducing variation are due to marketing and herd health. Identifying the causes of variation within a herd often reveals that simple, low- cost efforts, such as changing marketing practices, more effective disease management, or even vaccine choice can have major impacts on farm profitability . Additionally, if the individual pig data can be traced to individual flows, sites, or even barns, the level of precision intervention increases. Being able to target these interventions to where they are needed most helps reduce total cost significantly.
160kg
Manage Marketing and Acute Health Issues Related to Movement and Transportation
140kg
Undiscounted or Premium
Manage Nutrition/ Genetics
120kg
Manage Chronic Health Issues
100kg
80kg
44% 46% 48% 50% 52% 54% 56% 58% 60% 62% Percent lean
Dennis DiPietre Agricultural Economist
The need for precision agriculture practices becomes even more apparent in times of economic difficulties. Namely, when production costs are high and pig prices are low. This is because these improvements are permanent in nature, meaning that when economic conditions improve, the farm is still operating at a much higher level of productivity. Making these changes is also important because it serves as the basis for adopting even more sophisticated precision methods and practices over time. However, all of this begins with being able to answer, “what exactly am I producing?” Producers that can use resources more efficiently and extract much needed marginal value from their pigs are far more likely to gain competitive advantage in their markets.
An award winning consultant to agricultural and food industries, Dr. DiPietre advises on innovation, precision production and marketing, cost containment, optimisation modeling and negotiation.
Lance Mulberry Agricultural Economist
Lance Mulberry is an economist with KnowledgeVentures, LLC, specialising in bio-economic modeling, which is profit optimisation in the presence of natural variation. The focus of his work is primarily on swine production, consulting with clients from around the globe in all aspects of the pork supply chain.
Boehringer Ingelheim Animal Health Australia Pty. Ltd. Level 1, 78 Waterloo Road, North Ryde, NSW 2113. Toll Free 1800 808 691. AU-SWN-0006-2024 BI1836TA-05/24.
BI1836 Production Economics - 05 Precision Agriculture V4.indd 4
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