EDITORIAL
Killing with kindness
When Maple Leaf Foods president Michael McCain squared off with Ontario pork board representatives over hog prices last October, both McCain and pork board president Carl Moore dug in their heels. Moore had just received unanimous support from pork producers to pursue a open auction for Ontario pigs, and McCain, the new man at the helm of Maple Leaf, was determined to wrestle pigs away from the board for prices he could afford.
The pork board eventually won the right to an auction after several days of passionate debate before a Farm Products Marketing Tribunal. The auction also triggered a long-awaited price run up. Recent returns have been stalled by the annual fall decline, but price outlook continues to be positive.
Over at Maple Leaf, a kinder, gentler Michael McCain, having learned much from his first battle with the pork board, has emerged with a plan to rally pork producers to his cause - 60,000 hogs a week. Top-quality hogs, and enough of them to generate two shifts at the company's Burlington plant: a recipe for profit, McCain says.
Maple Leaf is offering producers a comprehensive contracting program based on Indiana-Illinois average prices, with incentives of up to $4.25 per pig and $100,000 interest-free loans for expansion-minded producers willing to stick to the Maple Leaf plan to develop a customized pig.
Three grids are available, ranging from the current Ontario grid to what McCain calls a "high-performance grid", with a high index of 114 and a narrow 80 to 94.9 kg carcass range. Producers earn a $1.50 a hog premium for all hogs which score a loin eye depth of 60 to 70 mm at the probe site.
This is the most comprehensive quality program ever launched, McCain told sister publication Farm & Country last month. "The result is you win, we win, the industry wins."
Only winners? No losers? Is it possible for producers and processors to earn healthy profits at the same time? McCain thinks so. He's betting on a healthy export market to make the project fly.
Canadian pork exports for 1996 have soared, and have already exceeded last year's totals. While exports to the U.S. are down, exports to the Japanese market, which McCain covets, are up 136 per cent, accounting for 24 per cent of the total. If both Maple Leaf and a large number of Ontario producers strike a deal, the real loser could be the Ontario pork board. By forcing McCain's hand, ironically, the pork board, while getting a good deal for producers it represents, could be writing its own obituary.
Many producers are already wondering what future role the board will play. Pork board chairman Carl Moore is enthusiastic about the Maple Leaf contract. He believes the auction will still play a strong role in price discovery and the board's new forward price contracting program will be embraced by producers as a way of minimizing exposure to price fluctuations.
Publicly, McCain was a gracious loser last winter when the auction verdict was handed down, but he doesn't like to lose. In the end, he may not have to acquiesce; he could kill the pork board with kindness. Time will tell.
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Smart hiring starts with job description
With average family farms keeping 200 sows, with 400 on the horizon, more owners need employees. But where do you find them? How much do you pay them? And what incentive plan produces the best results?Once the decision is made to hire someone, all family members must decide who and what they want. AgriCareers of Massena, Iowa, one of North America's big farm employment consultants, comes up with firm ideas. First, family members working in the barn must sit down and define the job.
Write these down, review them the next day and make changes that usually come as a result of afterthoughts. Review the cleaning, feeding, managing and planning, and weaning rates. List how each job is done, including methods and equipment, and the purpose of each function.
By this time it will be clear that the job is important and crucial to the success of the operation. Finally, the family must note the abilities, experience and training needed. Does it call for previous work in a barn and what type of barn? What sort of education must the candidate have? Are technical and management skills involved? Is a computer expert needed? Family members should also assess themselves in the same areas and then place a value of importance. Comparisons may also be made to ensure that too much will not be asked of the future employee.
The next factor to consider is rate of pay. Collectively, farmers are not renowned for being the best employers. Some have a reputation for paying as little as possible, and this attitude invariably results in a constant staff turnover - bad for profits, bad for morale. On the other hand, AgriCareers found pay ranked only 16th out of 20 important requirements sought by farm employees.
Far more important is the employer's attitude. Do they run hot and cold? Do they break promises? Are there family supervision conflicts? Are the rewards fair? Does the boss's son or daughter have unfair advantages in the work place? Never forget that owners, managers and straight employees are part of the team. Are employees participating in profit sharing based on an audited profit-and-loss statement?
Studies show that trust and pride are integral factors in most profitable pork businesses. On the question of pay, because it is a major expense, farmers should discuss salary ranges with their government swine specialist, veterinarian and other producers. While doing this, do not forget the southwest Ontario farmer who boasted he hired a "good" manager for $15,000 a year. Fifteen months later, the enterprise went bankrupt.
Gone are the days of hiring an industry failure. Pig care is no longer all-male territory. Pork producers are quickly finding out that women excel in the farrowing and weaning rooms. Countless Ontario farmers tell of reluctantly hiring a registered nurse with no experience, and stood by as their new employee found solutions to small litters, early deaths and breeding problems.
Eric Alderson, a former pork marketing board director and general manger of McLeod Hybrid Swine, found that over a 12-month period, two women, one a nurse, working with 380 purebred sows, had raised the number weaned per sow from 17 to 20 a year - three extra pigs.
Before making the final hiring decision, always get references and check them out. During Pork Producer's study, it was found that compatibility between the family and the newcomer was more important than anything else, even though the person had little pig experience.
Payment systems can range from a traditional salary to reward systems used by Northumberland's Kevin and Sean Brady, who believe in rewarding employees with shares in their operation. See story, page 18. This topic, alone, could fuel many a warm meeting of pork producers this winter.-JP
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Employees must focus on bottom line
By JOHN PHILLIPS
Andy Davis is one of Canada's top pig men. He does not own a farm but is general manager of Orange Hill Farms Inc., near Gorrie, where Bruce, Huron, Grey, Perth and Wellington counties intersect.A graduate of Hartpury Agricultural College near Gloucester, England, he arrived in Canada during the 1970s, and experience as a head pig man propelled him to major Ontario hog farms, including Oxford county's Thames Bend Farms, the Ontario Veterinary College's Dr. Mike Wilson's enterprise north of Guelph and the Martin Feed Mills' test farm where he did a nine-year stint.
Davis and his wife, Cheryl, run a tight ship. He was a keynote speaker at the first-ever farm employees seminar sponsored by this year's Ontario Pork Congress. When hiring for the 450-sow Orange Hill herd, Davis looks at a person's pig background, solid references, and a profit gleam in the eyes. To him, a job does not last long unless an employee knows that the bottom line is all important. Since a farmer has no control over feed and pork prices, barn efficiency must be the rule. He explains that breeding and the number of litters per sow set the rules. It's important an employee is bright and can grasp figures quickly. This requires a tight system, where either Pig Champ or Pig Tails record programs set the pace. His farm breeds 20 females a week, with sows and gilts averaging 2.3 litters a year. "If this doesn't happen. you're in trouble...and there are no excuses."
Since reproduction is crucial, Davis does 99 per cent of the breeding, each service 24 hours apart and starting on a Tuesday morning. Then there is pregnancy checking at 30 and 60 days. "My people must understand there can be no slip-ups." Preferring a time-honoured clip board for breeding follow-throughs, females are entered in order of breedings and then led to stalls in the same order. From that point, a computer takes over and enters them in alpha-numerical order. Data then is transmitted to Dr. Cathy Templeton of Listowel, the farm's veterinarian.
When the perspiration is wiped away from the forehead of future employees, what else does Davis look for other than a thorough knowledge of pig keeping lore? When the candidate visits him, he looks for a neat and tidy appearance. "That goes a long way with me. If he can't keep himself clean, how will he maintain a barn?"
Performance at former jobs "interests me greatly....Was he pushed or does he really seek to improve his position? Does he have a goal?" Some critical thinking also is needed. An employer has two choices: "Hire a person with lots of experience but run the risk of getting his bad habits, and that's difficult to change, or you can hire one who is inexperienced and then train him to your system....Believe it or not, this may be the better route."
Then there is the issue of pay. Davis favours starting a newcomer at the going rate and then giving an increase after three to six months. "But be firm. If things don't work out and a raise is not merited, then it should be through the door."
After the probationary period, farmers could consider paying a bonus on top of the pay schedule. The base should be the pound of pig through the barn door but this may cause friction. With more than one or two employees jealousies could arise among the specialists. What part of the bonus goes to those in the farrowing room, weaner area, and in the grower-finisher pens?
He advises that rates and scales must be set well before the complaints start and envy sets in. Also, pork producers should take a hard look at a reward system for their employees. Perhaps there could be an extra pay cheque for overtime beyond the call of duty or additional weekends free from barn duty. One thing is clear to Davis. Should farmers not look after good herdsmen, even the most diligent person will eventually lose an initial enthusiasm. "When this happens, your bottom line suffers...and that's what pig farming is all about."
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Ideal herdsman takes more than a résumé
By JOHN PHILLIPS
Kevin Brady and his son, Sean, run a 300-sow farrow-to-finish Northumberland county enterprise and are in the throes of launching a three-site unit with area farmers Don Winslow and Keith Allen.Early this year, a 10-year employee handed in his notice. He needed a change from pigs. This meant hiring a replacement but Kevin was not going to be rushed. The family's livelihood was at stake.
The Bradys have the reputation for being good employers, a fact reflected in the number of applications they received. Around 50 people wanted the position and all were interviewed, either on the phone or personally as their short list became manageable.
Some applicants appeared to have strong pig backgrounds but Kevin entertained doubts. No one met his needs, despite good references and solid backgrounds. After their search came up empty, the father and son team had to reassess the type of employee they wanted. Neither was sure until Perry Troywalchuck, 30, entered their lives.
He had a limited hog background and for 10 years had held an urban job in Kingston. But he and his wife, Barbara, had tired of a tedium that often goes with a city job, and sought life with animals in a rural area. He had spent his late-teen years on a Prince Edward county dairy farm which also raised pigs as a sideline.
Kevin explains he liked Troywalchuck as a total individual. There was openness, a stability confirmed by house ownership in Kingston, the couple had two young children, and Barbara offered to exchange a steady job for uncertainty in the Port Hope area. Troywalchuck was also willing to learn his job thoroughly.
Mark, one of Sean's brothers, adds Troywalchuck had an obvious liking for farm animals. "Let's put it this way. You can't train someone to really like pigs. We wanted a herdsman, and a good one at that." Troywalchuck also asked many questions about his future, a sure indication that he was not a drifter and sought a firm base for his wife and family.
A deal was done: a trial period at first, followed by permanent employment. Starting last April, the new herdsman proved himself immediately. There were many mistakes but, as Sean notes, he could laugh at himself and had a solid sense of humour. Also to his credit, he made no attempt to bluff his way through the barn. If he did not know something, there would be an instant question and the reply stored for future use.
Mark, a graduate geographer who is "between jobs", contends that when a person is green but has other outstanding qualities, an employer must have great patience. "You cannot lose your temper. You must keep your cool...try and be polite and courteous all the time. That can be the secret to good management."
Was the Brady hunch justified? Sean, a Guelph graduate and ticketed diesel engineer, notes Troywalchuck is speeding up his barn assignments, his learning curve still rises sharply, and long hours spent with his animals - he takes a final peek at them shortly after 9 pm - confirm his commitment, and weaning numbers per sow have started improving.
Should Troywalchuck opt for a herdsman's career, he will earn part of the farm's ownership by way of a shareholding, not a common approach among Ontario farm employers, or any farmer for that matter. It contradicts an innate thirst for undiluted land ownership.
But this father of five sons strongly disagrees with this attitude. "It's not good for agriculture. Land should be seen only as one form of equity. Good employees are also a type of equity." By owning part, albeit a small part at first, of the Brady company "he starts accumulating his pension fund...because the government won't do it for him."
The Troywalchucks have no regrets about their lifestyle change. The urban life no longer attracted them. "I wanted a permanent job in surroundings that meant a lot to Barbara and me, and I wanted definite prospects,"says Perry. He admits the jump meant a drastic change, especially when it involved being steered in charge of 300 PIC females, their offspring, and grasping the Pig Champ recording system.
"We love it out here," he says softly as he casts lingering eyes across the rolling Northumberland countryside, his white pony, Mindy, and a new Hereford calf.
By KEN PALEN
Does the bottom line take a pounding when a producer raises pigs that test positive for Porcine Reproductive and Respiratory Syndrome (PRRS)?In future, researchers will work hard to determine the answer. Many producers have struggled with PRRS, and wondered whether the disease was responsible for breakdowns in their biosecurity system, or whether PRRS had an accomplice. Two years of trials in Kenpal's Segregated Early Weaning (SEW) nursery and simple finishing facilities, involving over 1,000 pigs, have yielded some surprising results, posed many questions and provided few answers.
In our nursery studies we have seen no significant difference in the overall performance in PRRS-negative versus PRRS-positive pigs.
Although there are some variables between groups and different sources of genetics used, the pigs were basically the same age going in and coming out of the same facility under similar environmental conditions.
Nursery needs
When pigs were breaking with PRRS, usually in week two or three in the nursery, they would show reddish, swollen eyes as well as some nasal discharge. More treatments were required for joint problems and for pigs that did not eat. One PRRS-positive group suffered a greasy pig outbreak in several pens and were treated with used oil and penicillin. More time was spent cleaning feeders in positive groups.Overall, more action was needed to keep the nursery going for positive groups versus negative groups.
Finishing pigs
Not enough data has been collected on these groups of pigs because not all groups were finished at the farm and recorded. Some were sold and finished elsewhere.The general trend between the groups showed little overall performance variation, if any. Differences again would be the number of treatments per group for joints and a trend toward poorer response to individual pig treatment in PRRS-positive groups. This factor may have played a role in the number of cull pigs (slow growers) that were shipped lighter or held longer.
The bottom line
These results could mean that certain strains of PRRS (strains were not tested) by themselves, without the presence of other major swine diseases in all-in, all-out facilities, may not play a major, negative economic role in pork production. All-in, all-out pork production systems may be the key to managing pigs exposed to PRRS.Veterinarians are working hard around the world to help determine how to work with this problem. This little bit of on-farm data may help them further investigate control systems that could neutralize PRRS.
Ken Palen is a livestock specialist with Kenpal Farm Products, Centralia.
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