Animal Science 1 Unit 25
Objectives
Describe 3 methods of marketing hogs
 List and describe the grades of market
hogs
 List and describe grades of feeder pigs

Kinds of Markets
Direct
 Terminal
 Auction
 Some producers practice group
marketing through one of the above 3
methods

Direct Markets
Involves selling to a packing plant, order
buyers or country buying station
 Accounts for the majority of the hogs sold
in the US
 Producers deal directly with buyer and
must possess selling skills and knowledge
of the markets to be successful in getting
the best price
 Advantages

 Shorter transport distances
 Less animal shrinkage
Terminal Markets

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Hogs are consigned to a commission firm
Less than 1% of the slaughter hogs sold in
the US
Trend in recent years has been away from
terminal markets and toward direct
marketing
Usually several buyers competing for hogs
Prices may vary more widely than in direct
market due to the number of hogs coming
on the market on a given day
Auction Markets

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Important in some areas
Small percentage of hog sales
Not widely uses in the major hog producing
states
Producers are limited to sale days only
Low transportation cost and shrinkage due
to markets being in the area
Selling cost involved with terminal and
auction markets are commission,
insurance, yardage and feed
Group Marketing (X)
Established by major farm organizations
 Group negotiates contracts with packers
to supply hogs
 Basic purpose is to obtain higher prices
 Biggest advantage is increased
bargaining power

Slaughter & Feeder Swine
Slaughter swine- Those that are killed
and sold as meat
 Feeder swine- Those that are sold and
fed to higher weights before slaughter

5 Classes of Slaughter and
Feeder Swine
Barrow
 Gilt
 Sow
 Boar
 Stag

Grades
Only given slaughter barrows and gilts
 based on carcass quality and yield of
the four lean cuts

 Ham, Loin, Picnic Shoulder, Boston Butt
Acceptable Carcasses
Bellies are at least slightly thick overall
and not less than 0.6 thick at any point
 Other factors used to determine quality
are

 Amount and distribution of external finish
 Firmness of fat and muscle
Official USDA Grades
US No. 1—less than 1.00 inch of BF
 US No. 2—1.00 to 1.24 inches of BF
 US No. 3—1.25 to 1.49 inches of BF
 US No. 4— 1.50 inches or over of BF
 US Utility
 Estimated back fat thickness over the
last rib and muscling scores are used to
determine the official grade
 Fig 25-4 p. 479

Slaughter Barrows and Gilt Grade
Descriptions

See p. 479
Slaughter Sow Grades
US No. 1– 1.5 to 1.9 inches of BF
 US No. 2– 1.9 to 2.3 inches of BF
 US No. 3– 2.3 or more inches of BF
 Medium –1.1 to 1.5 inches of BF
 Cull– Less than 1.1 inches of BF
 See text p. 479-480 for descriptions of
the US Slaughter Sow Grades

Feeder Pig Grades
US No. 1
 US No. 2
 US No. 3
 US No. 4
 US Utility
 US Cull
 Fig 25-5 p. 481
 P. 481 for descriptions

Weight and Time to Sell

Traditional recommendation is to sell slaughter
hogs at 200-220 pounds
 This was based on (1) research indicated that feed
costs per pound of gain increased rapidly above 220
pounds and (2) much of the weight added over 220
pounds was fat.

Recent research however indicates that 4
factors should be considered
1.
2.
3.
4.

Type of Hog
Hog-feed price ratio
Amount of discount for heavier hogs
The time of year when hogs are marketed
See p. 481-482
Shrinkage
Weight loss that occurs during shipping
Distance to market is one of the most
important factors in determining the
amount of shrinkage
 2% can be expected regardless of distance
due to sorting, handling, loading and
hauling and takes place in the first few
miles
 Other factors that increase shrinkage


 Rough handling
 Temperature (below 20°F and above 60°F)
Summary
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Most hogs are marketed directly in the US, smaller
numbers are marketed through terminal markets and
by auction, some group marketing has also been
established to help get higher prices
Most hogs are sold on the basis of weight
Producers of quality hogs can get more by selling on
a yield and grade basis
Hogs are classified according to sex, weight, and
quality.
Grades are based on USDA standards and are used
for both butcher and feeder hogs. Grades are based
upon the quality of lean meat and percent of the 4
lean cuts that the carcass will produce
Summary
It has been traditionally recommended to
market hogs at 200 to 220 pounds
 However other factors such as hog-feed
prices ratio, discounts for heavy hogs and
seasonal prices should be considered. Hog
prices tend to be lower in early spring and
higher in the summer.
 Shrinkage increases as moving distance
increases. Careful handling to reduce
stress can also help to reduce shrinkage
and other losses.

Assignment
Rest of the Week
 Wednesday- Hog Anatomy Quiz
 Thursday- Watch Hog Slaughter video
and complete questions
 Friday- Complete questions for Unit 25:
Discussion Questions 3, 5-9, 12-14
Review 1-12 due Monday Oct 25.
 Test next Tuesday
