Epidemiological approach to the association between economic efficiency and productivity on swine farms in Prince Edward Island

Regression analysis was used to determine the ability of a number of biological parameters to predict economic efficiency. Detailed feed, financial, and production records were maintained by a random sample of eighteen Prince Edward Island (PEI) swine producers (each producing over 1000 market hogs per year). Relative economic efficiency of the operations was measured using return to management and labor (RML). Of the routinely monitored biological parameters, RML on PEI farrow-finish operations was best predicted (R2 = 64.8%) by: marketed per square meter per year (p = 0.008) and marketed per sow per year (p = 0.096). Regression of fixed costs revealed that biological parameters had limited ability to predict fixed costs per hog on farrow-finish operations (R2 = 30.7%). The only parameter contributing to the prediction of the fixed cost component of RML was feeder hog density (p = 0.077). The variable cost component of RML on farrow-finish operations was predicted (R2 = 94.3%) by feed cost per kg gain (p = 0.000), and marketed per sow per year (p = 0.044). The routinely recorded biological parameters on feeder farms had only limited ability to predict RML in this study (R2 = 43.7%). The only parameter of any importance was marketed per square meter per year (p = 0.106). Prediction of the fixed cost component of RML on feeder farms (R2 = 67.4%) was best realized by measuring feeder hog density (p = 0.045). The variable cost component of RML on feeder farms was reasonably well predicted (R2 = 74.7%) by feed cost per kg gain (p = 0.012). Although this parameter is difficult to monitor from records currently maintained on most farms, it points out the need to monitor feed consumption on swine farms.