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PR - Economically Optimal Pig Delivery Scheduling And The Design Of Meat Pricing Schemes When Pig Group Is Heterogeneous

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  • Niemi, Jarkko K.
  • Sevón-Aimonen, Marja-Liisa

Abstract

This paper represents a model for optimizing the timing of delivery of pigs to the slaughterhouse when the pig group is heterogeneous. We examine the value of having the option to split deliveries into two or more days, and management and income implications of different meat pricing schemes. These schemes penalize producers delivering heavier or lighter carcasses than some specified weight range, and reward for delivering low-fat carcasses. Different feeding regimes and genetic lines are considered. Weight-based pricing has large impact on the optimal harvest weight. It is optimal to harvest the fastest growing pigs before they suffer price discount due to heavy carcass, whereas pigs with the poorest daily gain are harvested at a much lower weight. Results suggest that the utilization rate of facility capacity is important for the timing of delivery of the least productive pigs. The benefits from the split harvest are approximately €5 per pig space unit per year.

Suggested Citation

  • Niemi, Jarkko K. & Sevón-Aimonen, Marja-Liisa, 2009. "PR - Economically Optimal Pig Delivery Scheduling And The Design Of Meat Pricing Schemes When Pig Group Is Heterogeneous," 17th Congress, Illinois State University, USA, July 19-24, 2009 345519, International Farm Management Association.
    • Handle: RePEc:ags:ifma09:345519
    DOI: 10.22004/ag.econ.345519
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    References listed on IDEAS

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    1. Kathryn A. Boys & Ning Li & Paul V. Preckel & Allan P. Schinckel & Kenneth A. Foster, 2007. "Economic Replacement of a Heterogeneous Herd," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 24-35.
    2. Boland, Michael A. & Foster, Kenneth A. & Preckel, Paul V., 1999. "Nutrition And The Economics Of Swine Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(1), pages 1-14, April.
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