Market versus formula-derived prices for SEW pigs K. C. Dhuyvetter 1 Summary A formula for deriving the price of SEW pigs using grain, soybean meal, and market hog prices was estimated based on return on investment being equal for all three phases of production – farrow, nursery, and finish. USDA reported SEW pig prices were compared with formula-derived prices. Using expected prices in the formula resulted in SEW prices that were strongly correlated with reported market prices. Using hindsight cash prices in the formula resulted in SEW formula prices that were weakly correlated with reported prices. Because no market price quote existed for SEW pigs and negotiating price for each transaction was costly and time consuming, buyers and sellers looked for pricing formulas to place a value on SEW pigs. Numerous formulas were developed ranging from a flat price of $30 to $32 per head to more complex formulas where price is a function of live hog, corn, and soybean meal prices. The report lists high, low and average prices by lot size as well as a weekly composite price. The following are the estimated formula prices: SEW pig price: – 2.308 – + – + + – = Price of 10- lb. Feeder pig, $/head where, GRN is grain price, SBM is soybean meal price, and LH is market hog price. 2 Weekly composite market prices quoted by USDA-AMS from 11/97 to 6/00 were compared to formula-derived prices for SEW pigs to determine how well these two price series are correlated. Observed cash prices for GRN, SBM, and LH. This method values SEW pigs in “Hindsight.” Results and Discussion SEW formula-derived prices calculated using futures-based price expectations are compared to USDA quoted market prices in figure 1. LH is the expected price of a market hog at the end of the finishing phase and GRN and SBM are the expected average prices for corn and soybean meal over the nursery and finishing phases. Formula prices tend to be smoothed out compared to USDA quoted prices. 4 50 USDA reported price K-State formula price* SEW price, $/head 40 30 20 Correlation = 0.87 10 0 06/19/97 01/05/98 07/24/98 02/09/99 08/28/99 03/15/00 10/01/00 SEW pig sale week * Corn price = Average of futures contracts + expected basis over feeding period the week SEW pig is sold SBM price = Average of futures contracts + expected basis over feeding period the week SEW pig is sold Market hog price = Deferred futures price + expected basis for market hog the week SEW pig is sold Figure 1. 50 USDA reported price K-State formula price* SEW price, $/head 40 30 20 Correlation = 0.27 10 0 06/19/97 01/05/98 07/24/98 02/09/99 08/28/99 03/15/00 10/01/00 SEW pig sale week * Corn price = Average of cash price for 50 weeks prior to the week market hog is sold SBM price = Average of cash price for 50 weeks prior to the week market hog is sold Market hog price = IA-MN cash price the week market hog is sold Figure 2.
British Cavy Council
It has been written by the British Cavy Council in conjunction with the National Cavy Club and the Southern Cavy Club. Is escape proof; is predator proof; excludes vermin which may be attracted to cavy food; provides adequate protection from heat and cold; is exposed to natural light but protected from strong direct sunlight in summer; provides continuous access to water; provides adequate ventilation so that condensation does not become a problem; is safe from fumes and vapours; is easily cleaned; is safe for the occupants i.e. has no sharp projections, and does not have a wire mesh floor through which feet and legs may be damaged; and provides opportunities for sufficient exercise. A cage housing a single cavy or pair of cavies should be a minimum of 3 square feet and of a height of at least 15 inches. Care should be taken that the bedding material has not been treated with chemicals, for example, those used to prevent horses from eating their bedding, for these may be harmful to a cavy. If fighting continues, the provision of an individual ‘hidey’ for each cavy may help to alleviate this; but separation of the animals concerned is greatly to be preferred. Very young children should be seated on the floor whilst handling cavies to reduce the risk of the cavy falling. A cavy should be lifted gently by placing one hand underneath to support the whole the body of the cavy. A cavy should be carried with one hand underneath the body of the cavy and the other hand resting on the cavy’s shoulders. The cavy should be carried close to the body; children may feel more confident carrying the cavy against their chest whilst supporting the weight of the cavy with both hands. Each cavy should be observed at least once daily to monitor its health. Ruttling – upper or lower respiratory noise occasionally made by guinea pigs may be just a nervous symptom that remains with a cavy for life or may be the first sign of an acute lung infection which may be more serious – veterinary advice should be sought. If transporting more than one cavy at a time in warm weather, it is better to transport each animal in its own compartment of the carrier, even if they normally live together; they will remain cooler if travelling alone. A cavy should not be exhibited when there is suspicion of infectious disease in the caviary, even if the individual cavy appears to be well. Be satisfied that the new owner is over sixteen years of age or has the permission of a parent or guardian who agrees to provide for the welfare needs of the cavy be satisfied that the new owner has all made the necessary provision for housing and feeding the cavy. Where a cavy has particular breed characteristics that could lead to welfare issues, this should be discussed with the new owner, e.g. trimming of longhaired cavies or breeding cavies of any variety with Dalmation or Roan coat markings.