The major determinants of net return from hog production in Manitoba

Abstract

Hog production has become an important source of income to Manitoba farmers. An expansion in hog operations would add to this income source. Any information that assists in the process of expansion would be valuable to farmers and the economy of the Province. This study was directed to determine the important factors that influenced net return from hog production so as to guide the manner in which additional investment might be expended. The objectives were achieved by utilizing data from 29 Manitoba farms engaged in hog production. A regression model was constructed to study the relationship between value of production and various cost factors; another regression model was used to study the management factors that were associated with net returns. The costs which explained the greater part of the variation in the value of output were fee cost, cash expense, fixed cost and labour cost. The management factors which explained the greater part of the variation in net returns were number of pigs weaned, quality rating of hogs, years of formal education of the farmers and the number of sows per farm. The analysis showed that the factors having the greatest influence on net returns from hog production were the number of pigs weaned, the quality rating of the hogs, feed cost and cash expense. The conclusions emphasize the importance of management decisions that relate to feeding, care at weaning time and a clean environment.