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| ANS 94-802S | |||
Should Replacement Gilts be Raised or Purchased?
Introduction
The demand on commercial pork producers to raise leaner animals without compromising
reproduction or productivity dictates that a terminal crossbreeding program be used. A
terminal crossbreeding system allows the producer the best use of specialized sire and
dam lines. Terminal sire lines should be used that are extreme in leanness, muscling and
growth. Emphasis should be placed on litter size, milking ability and longevity within the
dam lines, with some regard to backfat.
By using sire and dam lines that differ completely in breed composition maximum paternal,
maternal and individual heterosis will be achieved. A terminal crossbreeding system also
allows the producer to have maximum consistency in the final product, uniformity of
production practices and less labor in the breeding barn.
The problem in a terminal crossbreeding program is obtaining replacement gilts. There are
two options. They can be purchased or raised on the farm.
Why purchase?
Producers decide to purchase gilts for many reasons. The greatest advantage to many
producers is the opportunity to purchase animals of greater genetic value from a higher
quality selection program. For other producers herd size may be too small to maintain a
separate breeding group to produce gilts.
For some, the only way to obtain some breeds or lines is by purchasing the terminal breeding
animals. For other producers, using a single seedstock supplier that has high herd health
can allow the establishment of a herd health level equal to that experienced by the
supplier.
Perhaps the most common reason that producers purchase gilts is "service". Service
generally means that gilts are purchased with a guarantee that they will breed, be available
when needed and will be delivered to the farm. Some seedstock suppliers also offer
record-keeping services, animal selections and management and nutritional consulting.
Why produce?
Most producers who raise their own replacement gilts are trying to reduce their total
investment in breeding stock. Other producers may be trying to minimize the health risk
associated with bringing in new animals to the herd. It is also possible to create capital
gain opportunities on cull sows when you produce your own replacement gilts.
Requirements for a Successful Production Program
The five basic ingredients for a good replacement gilt production program are: 1)
Management, 2) Planning, 3) Record-keeping, 4) Desire, and 5) Money. A producer that is
raising replacement gilts should be able to answer yes to the following questions.
Costs to Raise Replacement Gilts
The primary costs associated with gilt production can be separated into four categories.
When you produce gilts a portion of the herd is dedicated to matings that will reduce
heterosis. Purchase of boars and some gilts may still be needed. Even though fewer need
to be purchased, these animals should be of greater genetic merit and will be priced higher.
Also, the extra time required to properly manage gilt production has a cost. Extra time
spent in management is required for purchasing germplasm, performance testing, specialized
mating and record keeping. The final cost associated with gilt production is lost market hog
value on cull gilts and littermate barrows. The lost market hog value will be greatest in
a carcass merit buying program.
Production Programs
Three different methods of making a four breed terminal cross will be compared. The first
system is where all breeding animals are purchased and the second is a grand parent herd.
The third system is a rotaterminal approach where the high producing sows are
identified and mated to maternal boars to produce gilts.


Purchase: In this system both F1 sows and F1 boars to produce the market crosses are
purchased. Tables 1 and 2 show that maximum heterosis levels are maintained under this
system. Table 3 shows that purchasing gilts returns the greatest profit per 100 sows.
However, in Table 4 it is obvious that this system requires the greatest investment in
breeding animals. In contrast there is no additional management cost (Table 5) or lost
market hog value (Table 6).
Grand Parent: In this system 15% of the sow herd is dedicated to the production of
gilts. Tables 1 and 2 show that this will result in a 15% loss of maternal heterosis which
reduces profit by $512 per/100 sows (Table 3). The investment in breeding stock is
intermediate because a higher price is paid for grand parent boars and gilts that have
greater genetic potential. There are also additional costs for managing a separate
grand parent herd (Table 5) and $1,644 of market hog value will be lost (Table 6) in a
carcass merit program due to cull "maternal" gilts and barrows.
Rotaterminal: In this system 15% of the sow herd is also dedicated to gilt production.
The accurate identification of the top 15% of the sows is vitally important to make this
system work. Tables 1 and 2 show that the greatest reduction in heterosis occurs in this
system. The profit (Table 3) is $1,144 less than the grand parent system and $1,656 less
than the purchase program per 100 sows. However, the rotaterminal system is expected to
have the lowest cost of germplasm (Table 4). Management costs (Table 5) are the greatest
with this system and there is lost market hog value (Table 5) on a carcass merit program.
Table 7 shows the comparative net return for each program when profit, cost of germplasm,
cost of management and lost market hog value are considered. The net return has a range of
only $299 per 100 sows. The small differences in net return indicate that deciding which
gilt production system to use is primarily a management decision.
An important assumption that was made is that genetic merit is considered to be equal in all
three systems. If genetic merit is not equal, the system that offers the greatest genetic
potential will have the greatest net return. The program that has the greatest risk of
reduced genetic potential is the rotaterminal if the sow herd used for producing
replacements is not of high genetic merit. In the rotaterminal program great care must
be used to bring in the absolute best in maternal boars to produce replacement gilts.
Summary
You should consider raising your gilts if:
| System | Sire | Dam | Proportion of matings | Maternal Heterosis | Individual Heterosis
| Purchase
| HD
| CY
| 100
| 100
| 100
|
|
|
|
| 100
| 100
| Grand Parent
| CC
| YY
| 15
| 0
| 100
|
| HD
| CY
| 85
| 100
| 100
|
|
|
|
| 85
| 100
| Rotaterminal
| YC,Y..
| 7.5
| 67
| 67
|
| HD
| YC,Y..
| 42.5
| 67
| 100
|
| YY
| CY,C..
| 7.5
| 67
| 67
|
| HD
| CY,C..
| 42.5
| 67
| 100
|
|
|
|
| 67
| 95
| |
|---|
| Purchase | Great Grandparent | Rotaterminal
|
| Percentage advantage over purebred
| PATERNAL HETEROSIS
| Conception rate
| 5.0
| 4.3
| 4.3
| MATERNAL HETEROSIS
| Conception rate
| 5.0
| 4.3
| 3.4
| Number born alive
| 8.0
| 6.9
| 5.4
| Survival rate
| 12.0
| 11.1
| 8.0
| 21 day litter weight
| 27.0
| 24.5
| 18.1
| | |||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Trait | PURCHASE | GRAND PARENT | ROTATERMINAL
| Conception rate
| 90.0%
| 88.6%
| 87.7%
| Number born alive
| 10.7
| 10.6
| 10.2
| Survival rate
| 89.6%
| 88.9%
| 86.4%
| Pigs/100 sows/year
| 1726
| 1,670
| 1,546
| cwt./100 sows/year
| 3970
| 3,841
| 3,556
| Profit ($4/cwt.)
| $15,880
| $15,368
| $14,224
| |
|---|
PURCHASE
| Purchase 4 boars @ $ 750
| =
| $ 3,000
| Purchase 45 gilts @ $ 225
| =
| $10,125
| Total
|
| $13,125
| GRAND PARENT
| Purchase 1 boar @ $1,000
| =
| $ 1,000
| Purchase 3 boars @ $ 750
| =
| $ 2,250
| Purchase 7 gilts @ $ 300
| =
| $ 2,100
| Raise 38 gilts @ $ 100
| =
| $ 3,800
| Total
|
| $ 9,150
| ROTATERMINAL
| Purchase 1 boar @ $1,000
| =
| $ 1,000
| Purchase 3 boars @ $ 750
| =
| $ 2,250
| Raise 45 gilts @ $ 100
| =
| $ 4,500
| Total
|
| $ 7,750
| |
|---|
| System | hours @ cost/hour | Total
| PURCHASE
| 0 hours @ $10/hour
| $ 0
| GRAND PARENT
| 152 hours @ $10/hour
| $1,520
| ROTATERMINAL
| 200 hours @ $10/hour
| $2,000
| |
|---|
| System | head @ loss/head | Total
| PURCHASE
| 0 hogs @ $8/head
| $ 0
| GRAND PARENT
| 205 hogs @ $8/head
| $1,644
| ROTATERMINAL
| 187 hogs @ $8/head
| $1,495
| |
|---|
| PURCHASE | GRAND PARENT | ROTATERMINAL
| Profit
| $15,880
| $15,368
| $14,224
| Cost of Germplasm
| ($13,125)
| ($ 9,150)
| ($ 7,750)
| Cost of management
| 0
| ($ 1,520)
| ($ 2,000)
| Lost market hog value
| 0
| ($ 1,644)
| ($ 1,495)
| Net
| $ 2,755
| $ 3,054
| $ 2,979
| |
|---|
Reviewed by:
Darwin G. Braund, Chrales M. Stanislaw, Department of Animal Science,
and Kelly D. Zering, Department of Agriculture and Resource Economics, North Carolina State University.
Since June 1, 2000