Pig stock values and insurance cover

Gerard McCutcheon, Teagasc Pig Production Specialist, discusses the importance of accurately valuing pig stock to ensure adequate insurance cover on pig farms.

Correct insurance cover is vital to protect your business if an accident or tragedy occurs on the farm. It is important to understand your insurance cover when you pay your annual premium. The value of your pig stock is one area that needs to be covered by your insurance premium.

For farmers who use the Profit Monitor recording system there is a stock valuation on the last page of the report. These stock values are set at €200 per sow, €160 per gilt, €150 per boar, €25 per piglet, €40 per weaner and €85 per finisher. These figures remain consistent since the Profit Monitor system was updated in 2013. The main purpose of these figures is to factor in any increase or decrease in stock values over the recording period.

When insuring the stock on a pig farm their value must be estimated. This will vary depending on the pig sale value and the feed cost on your farm.

The value of piglets, weaners and finishers will vary in response to the pig sale price, feed performance and feed costs (€/tonne). Assuming a sale weight of 120kg LW and a 76.5 % kill-out will allow a valuation for these pigs as shown in the table below. This values the pigs at a sale value minus the feed cost with some allowance for the other variable costs to bring the pig to sale weight.

Value of a Piglet, Weaner and Finisher based on two sale prices

Assumes a finisher FCE of 2.7 and a weaner FCE of 1.8. Transfer to finisher at 38kg LW. Creep/starter diet @ €1040/t, Link @ €760/t, Weaner @ €390/t, Finisher @ €328/t.

If we take the 170 c per kg sale price we get a €1,530 stock value per sow plus progeny (add the value of a sow valued at €500 each to this figure). This figure is €1,593 per sow plus progeny if the finisher sale price is 180 cent per kg DW, or €60 more per sow plus progeny.

For insurance cover of stock you need to decide what other risks are you to insure against. Cover should also be sought to cover the value of pigs being transported from the farm (pigs in transit) if you transport your own pigs for sale. Discuss this with your insurance company as you renew your policy.