Greg Bilbrey Agri Stats, Inc'

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Greg BilbreyAgri Stats, Inc.

• Benchmarking and Production-Cost Relationships
• 2008 Pork Management Conference
• May 7-9
• Destin, FL

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Agri Stats

• International commercial livestock benchmarking
  service....
• Broilers
• Layers
• Turkeys
• Swine
• Kill Processing Plants

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Agri Stats

• Poultry
• 95 Turkey Industry Participation
• 95 Broiler Industry Participation
• 110 Million Laying Hens
• 25 Participants Express Markets

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Agri Stats

• Swine
• 1.45 Million Sows Monthly Report
• 29 Million Weaned Pigs
• 25 Million Nursery Pigs
• 25 Million Finishing, Wean-Finish Pigs
• 18 Swine Kill/Processing Plants

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Agri Stats

• Ingredient Purchasing
• Feed Mills
• 275 Ingredient Purchasing Locations
• 195 Feed Mills
• Compare all participants across species

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Agri Stats Monthly Reports

• Profit Sales
• Market Haul DOA (in process)
• Finishing WF Cost and Performance
• Nursery Cost and Performance
• Wean Pig Production Cost Performance
• System Summary

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Agri Stats Monthly Reports

• Feed Mill Cost and Performance
• Ingredient Purchasing
• Month, Quarter, Twelve months
• Rankings, variances, effects on cost, economic
  impacts
• International production groupings

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Benchmarking
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Benchmarking

• Rank Xerox innovator formal process
• Strategic Management
• Prevents Paradigm Blindness
• Determine Best Practices
• allows organizations to develop plans on how to
  adopt best practice, usually with the aim of
  increasing some aspect of performance.

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Benchmarking

• Comparison of an organizations processes,
  products, or services with those of a top
  competitor.
• Benchmarking involves studying the best
  performing organizations providing similar
  activities or products, thereby improving the
  operations or work processes.
• Accounting for Decision Making and Control
• Jerald Zimmerman, Fourth Edition

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Benchmarking

• The practice of benchmarking dates back to 607,
  when Japan sent teams to China to learn the best
  practices in business, government, and education.
  Today most large firms in the US and Canada
  routinely conduct benchmarking studies to
  discover the best business practices and then
  implement them in their own firms.
• Accounting for Decision Making and Control
• Jerald Zimmerman, Fourth Edition

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Benchmarking

• Why not swine production or swine enterprises?
• Lower Costs
• Improve Production
• Increase Financial Health

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Benchmarking

• Contemporary group
• Data Availability and Process
• Production
• Financial
• Method and Management
• Analysis

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Production Cost Relationships
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Ranking Advantages of Top 25 in
Profit 22,693,085 Pigs finished Agri Stats,
Inc., January - December 2007
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Ranking Advantages of Top 25 in
Profit 22,693,085 Pigs finished Agri Stats,
Inc., January - December 2007
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Ranking Advantages of Top 25 in
Profit 22,693,085 Pigs finished Agri Stats,
Inc., January - December 2007
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Ranking Advantages of Top 25 in
Profit 22,693,085 Pigs finished Agri Stats,
Inc., January - December 2007
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Ranking Advantages of Top 25 in
Profit 22,693,085 Pigs finished Agri Stats,
Inc., January - December 2007
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Ranking Advantages of Top 25 in
Profit 22,693,085 Pigs finished Agri Stats,
Inc., January - December 2007
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Variance Advantages of Top 25 in
Profit 22,693,085 Pigs finished Agri Stats,
Inc., January - December 2007
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Variance Advantages of Top 25 in
Profit 22,693,085 Pigs finished Agri Stats,
Inc., January - December 2007
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Effects on Cost

• Weaned Pig Cost
• 29 million weaned pigs (Jan-Dec 2007)
• 36 locations
• 3 million litters
• Avg. Co. 28.16/pig
• Top 25 25.55/pig
• Sow Farm EOC -2.87/pig
• Production EOC 0.49/pig

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Production Cost Take Home

• BENCHMARK - Cost AND Production
• Best Practice in production doesnt always mean
  Best Profit
• Big Picture get more pigs to market, lower cost

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Production Cost Take Home

• Easier to overcome poor production
• with lower cost than to overcome high
• cost with good production.

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Cost and PerformanceAverage vs. Top 25Agri
Stats DataJanuary December 2007
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Cull Lbs 8.1 (f.2)
AUDIT RUN
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Average Age of Market Hogs (8.1,d)
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Average Age of Market Hogs (8.1,d)
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Mortality 6.98 (c)
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Finish Hog Cost per CWT (6.1,a.1)
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ADG 6.98 (i.1)
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Feed Conv-Lbs 6.98 (j)
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Feed Conv-Calories 6.98 (j.1)
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Wean Pig Cost (/WP) 1.1 (a.1)
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Farm Cost/Std Sow/Wk 1.1 (b.2)
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Wean Pigs/100 Std Sows/Wk 1.1 (c.2)
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Feed Ing Cost/Pig 1.2 (b.2)
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Born Live 1.1 (f.2)
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Pre Wean Mortality 1.1 (g.2)
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Pigs/Mated Sow/Yr 1.1 (d.4)
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Agri Stats, Inc.Greg Bilbrey260-433-9969

• Thank You!