This long–time AgriSolutions client, located in the Midwest, is primarily a pork producer, finishing 100,000+ head annually, with approximately 2,000 acres in Corn and Soybeans. He owns and leases multi-phase, farrow-to-finish operations as well as purchasing weaner pigs which are finished to market.
This pork producer had six pig flows to consider: three separate farrow-to-finish pig flows, one owned and two leased, and three purchased wean-to-finish pig flows. The purchased weaner pigs come from three different sources. The producer knew his profit collectively, but he wanted to determine the profit of each individual pig flow. Understanding if each was profitable or not would allow him to decide if he should continue to invest in each of the pig-flows going forward.
Since this producer had been an AgriSolutions client for more than two decades, he had already been using AgriSolutions’ AgManager farm accounting software to help him make informed management decisions based on his Entity-level financials as well as accurate Managerial reporting for both the crop and pork enterprises. However, as mentioned above, he had only been capturing and analyzing the data for one combined pork profit center (pig flow). He needed to be able to capture and analyze each individual pig flow’s financial data as separate pork profit centers so that he could make management decisions based on each profit center’s performance and resulting profitability.
Since this producer had already been using the AgriSolutions AgManager farm software successfully for years, he knew that he was doing well from a profitability and financial accuracy standpoint. However, he wanted AgriSolutions’ expertise to help break down the information into a more granular perspective. Partnering together, the client provided necessary input to AgriSolutions’ consulting team who were then able to utilize AgManager’s functionality to customize the managerial accounting financials to mirror each pig flow. Beginning with a new calendar year production cycle, the managerial data was structured into six different pig flows. Obtaining this information on the six separate pig-flows enabled him to move beyond making “gut feeling decisions” and ultimately determine where his profit is generated and where he should be investing time and resources. From there, he was then able to assess and analyze the results to make better management decisions.