ECONOMICS OF SPACE ALLOCATION FOR GROWER-F IN ISHER HOGS: A S IMULAT ION APPROACH

The economics of animal space allocation for grower-finisher hogs in a eonfinement facility with partial slats was r using a simulation model. Additional crowding over that previously recommended may be warranted based on results from the model. The pig performance p nalty is more than offset by spreading the fixed costs over greater output. In order to remain competitive, swine producers are currently consŸ major investments in new or remodeled facilities for growing-finishing pigs. These investments are estimated to range from $100 to over $150 per nominal pig space I for new grower-finisher facilities. Pig performance (daily gain, daily feed intake, and feed to gain) varies with the aUocation of space, with insufficient space adversely affecting performance. Conversely, investment cost per nominal pig space increases as additional space per pig is provided. The space allocation for maximizing pig performance may not be optimal for maximizing profit. Therefore, the tradeoff between production efficiency and space allocation becomes critical for maximizing profit and remaining competitive (Edwards, Armsby, and Spechter). Producers are interested in maximizing profit, but not if it means taking on disproportionately higher risks. Therefore, producers are interested inknowing how space allocation decisions may affect the variability of profit