SOUTHWEST GROUPING SEEKS PIG PROFITS
Last month's opening of the Maple Genetics Ltd. (MGL) new
state-of-the-art barn in Elgin county seemed a natural
progression as Ontario's pork industry moves apace into
new restructuring. Many small producers come together in
groups, called loops or alliances, others semi-integrate
and become affiliated with a feed dealer and a packing
company, while some of the larger ones settle for what's
called the entrepreneurial approach and have enough clout
to cut their own deal.
MGL, now past the farrowing stage, has strong links with
Brian and Joanne Simpson's Premier Quality Genetics Ltd.,
Shamrock Genetics Ltd. owned by 10 of Ontario's top
breeders, and Quality Swine Co-operative (QS), which
serves hundreds of producers with breeding stock, genetic
packages, weaner marketing and several allied health and
barn products.
Simpson, a former Quality Swine president, stresses that
each stage involves strong family participation. The
pristine MGL, for example, is owned by three farm
families from Elgin and Middlesex counties with specific
roles: the Simpsons look after marketing, Heinrich and
Maria-Theresa Kemmerling handle financing and paper work,
and Joe and Gosia Arts supervise production. With 750 F1
sows, MGL multiplies York and Landrace material for
grandparent and parent stock.
Early February it opens a 70-boar stud, one of Canada's
largest. The goal is rapid distribution of top genetics
to producers and commercial farmers, and expanded AI and
breeding sales in South America, already a major market
for the group's animals. Simpson explains this thrust is
made possible by the sudden growth of AI over the past
three years: from three per cent of all breedings to
between 15 to 17 per cent.
At the new MGL barn, all piglets go through the
segregated early weaning (SEW) process, and are weaned at
14 days, with 60 per cent of the output going to an
18-family loop, Southwest Pork Alliance, based in Lambton
county. While growing lustily, it still sails in largely
uncharted waters. Richard Smelski, a swine specialist
with the Purina feed company, says the final economics of
SEW must still be resolved. "Basically, is it more
profitable to handle one-roof youngsters or take them
from several sources?" he asks.
Whatever may be claimed of the SEW system, "the jury's
still out," he says. The principle works well but there
are still several problems, largely "on how you maximize
the profits when growth of piglets tends to be uneven."
He adds that Minnesota, which headed for SEW barns two
years before Ontario, still has no firm answers except
that piglets grow more quickly and have few health
problems.
Bev Hill, a part-owner of Huron county's loop, Allied
Pork Inc., agrees. His experience points to sub-light
piglets which may come into the world at 1.5 kg and grow
to only 3.25 kg at 14 days when litter mixing occurs. To
him, even-size and heavier litters would be the main
answer. Split weaning is proving to be a partial answer.
"We've still got a way to go... and so does everyone
else," Hill contends. "Fourteen-day weaning does not come
with the magic solution. It's a good start but there's
still a lot of management involved."
Invariably, groupings have a direct or indirect link with
feed companies, because any producer grouping is seen as
a source of large-volume feed sales. Hence Purina's
cautious role in loops, while Shur-Gain takes a more
hands-on approach through its associations with
enterprises such as Ontario Pork Corp. in Huron county.
Another ingredient is an alliance with packing companies:
Southwest Pork's animals are bought by Quality Meat
Packers Ltd. of Toronto, while Ontario Pork Corp.'s go to
Maple Leaf Meats (formerly Fearmans) of Burlington.
Few producers doubt the emergence of Maple Genetics Ltd.
adds a new dimension to the pork industry. The loop
offers a good market for culled breeding animals -
something sought by commercial producers - and Simpson
adds that the 40 per cent retained on the home unit are
fed to 30 kg and then sent to customers across Ontario,
the U.S. and South America. - JP
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