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SW MN - mt. lake/windom | I would be very cautious. The numbers your throwing out there are somewhat unbelievable. But I guess if one looks at worst case scenario and does not evaluate alternatives he could show huge returns on different equipment. 30$ per head savings in feed seems out of line, our current feed cost right now is right at 49$ for feeder to finish, so a 66% reduction in feed cost seems to good to be true, basically feed cost at handling expense, if ingredients (byproducts) are free that market is very subject to dry up and change as more end users will increase demand and supplier will raise cost of product till more competitive. I tend to believe 30$ may have been achievable at 8$ corn and 600$ sbm era but currently I would guess that savings are in the range of 2-5$ per head with net savings around 1-3$ per head after extra handling expense on your end is added in. Again on the sorter, 8.5$ per head savings, wow, I could see this to be the case vs. bin run loading but typically we see .5-.75 per hundred weight improvement, I typically figure best case scenario when stars align is 1.5$ per hundred weight.
I guess if the numbers you throw out are true for the owner of the pigs, there should be no problem with the custom feeding rate to increase 20-30% of savings. So if savings are 38.5$ per head x 2 turns per year =77$ per head savings it is reasonable for custom feeding rate to increase by 20$ per head or around 60$ per space per year. That is how the appraisal value will show value in your added expense. Typically approsals look at cash equivalent values (i.e. - new cost or recent sales in surrounding area) or cash flow values (i.e - pay back period on new concept).
From what you are describing this is going to be a very labor intensive process. You will have 2.5 times more manure to haul requiring spring and fall application, I would highly recommend owning your own manure handling equipment, spring manure application is very time sensative. If not done at the right time the manure becomes a liability due to compaction and soil damage of injectors or you lose 60% of nitrogen. | |
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hog barn help needed
