Upload
selina
View
40
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Managing Feed cost U.S. Producer Perspective. Chad Hagen, PhD. Feed Cost Represents 70% of Total Cost of Production. Source: Agristats 2011. Presentation Outline. What is Best Cost Nutrition? Importance of Feed Conversion Importance of Throughput Herd Health Effects Genetic Effects - PowerPoint PPT Presentation
Citation preview
MANAGING FEED COSTU.S. PRODUCER PERSPECTIVE
Chad Hagen, PhD
Feed Cost Represents 70% of Total Cost of Production
Mar/09Ap
r/09May
/09Jun
/09Jul/09Au
g/09Sep
/09Oct/
09Nov
/09Dec/
09Jan
/10Feb
/10Mar/
10Ap
r/10May
/10Jun
/10Jul/10Au
g/10Sep
/10Oct/
10Nov
/10Dec/
10Jan
/11Feb
/11Mar/
11Ap
r/11May
/11Jun
/11Jul/11Au
g/11
50
55
60
65
70
75
Feed
as
% o
f To
tal C
ost
Source: Agristats 2011
Presentation Outline What is Best Cost Nutrition? Importance of Feed Conversion Importance of Throughput Herd Health Effects Genetic Effects Feed Processing Effects Feed Additives Diet Design Right Feed/Right Time Risk Management
What is Best Cost Nutrition?
Best Cost ≠ Cheapest Diet
Best Cost ≠ Lowest Cost/kg Gain
Best Cost ≠ Highest Margin Over Feed Cost
Best Cost = Nutrition Solution that Maximizes Profit
Importance of Feed Conversion Feed Conversion Ratio = Feed/Gain Measure of efficiency of feed utilization It is common to improve F/G while
making feed cost worse F/G improvements must be cost effective Interpreting F/G results is not always
clear cut
Finishing Closeout Comparison
Group 1 2Weight In, lbs 26 20Weight Out, lbs 123 120Mortality, % 4.9 3.7ADG, lbs/day 0.85 0.85 F/G 2.84 2.86
Gaines, 2011
Finishing Closeout ComparisonAdjusted for In and Out Weight
Group 1 2Weight In, lbs 26 20Weight Out, lbs 123 120Mortality, % 4.9 3.7ADG, lbs/day 0.85 0.85 F/G 2.66 2.80
Gaines, 2011
Sow Herd Productivity
Best Cost nutrition in the sow herd is affected not only by F/G and feed cost, but also productivity
Sow Herd Throughput and Efficiency
Sow herd productivity (Pigs/Sow/Year) Pigs weaned/litter
Born alive Pre-weaning mortality
Litters/sow/year Farrowing rate Non-productive days
Sow herd feed cost Sow herd F/G Sow diet costs
Importance of Throughput in Best Cost Nutrition
F/G is a measure of efficiency only
Cost/kg gain is a measure of efficiency only
Profitability is driven by efficiency AND throughput
Key is to optimize throughput at the lowest possible diet cost
What is the Best Way to Measure Feed Efficiency in the Sow Herd? When examining whole herd feed efficiency the
productivity of the sow herd directly determines the number of pigs that sow feed use and costs can be spread over
Whole herd feed efficiency for the sow can be measured using sow feed per pig marketed
Common practice for sow farms to measure sow feed per year or sow feed per weaned pig produced
Alternatively can measure sow feed per unit of market weight produced
Gilt Age at Mating is a Driver of Feed Cost and Throughput
Mating too soon adversely affects gilt performance
Waiting to mate is costly with high feed costs
Optimum timing of mating maximizes throughput at the best cost
Wean to Market Productivity
Best Cost nutrition is affected not only by F/G and feed cost, but also by throughput (ADG, livability)
What is the Value of ADG? Depends on availability of space in a system
Space short = pigs pushed out by the next group resulting in market weight below optimum
Space long = adequate space to achieve optimum market weight
Technologies that increase ADG have more value in space short situations
Effects of Stafac in Space Long vs. Space Short
Go to Excel
Effects of Disease on F/G and Productivity
Direct Effect of Mortality Dead pigs that eat feed but do not produce
weight gain
Growth and Performance Effects Impact on affected survivors Chronic vs. acute
Chronic Immune Stimulation
Affects feed intake Reduced ADG
Lowers lysine requirement
Affects efficiency of gain Mediated through changing composition of
gain – reducing protein deposition in relation to lipid Lean about 75% water Lean more efficient to deposit than lipid
Maintenance requirement increased relative to overall requirements
Dritz, 2011
Major Pathogens Have Changed with the Move to Multi-Site
Production Viral and Mycoplasma
PRRS PCV-2 SIV
H1N1 H3N2
Mycoplasma Hyopneumonia
Environmental Lawsonia Intracellularis Salmonella
Emerging/Reemerging Swine Dysentary TGE
Pathogens that have placental transfer, poorly protective passive immunity, or can live for extended periods of time in the environment.
Dritz, 2011
Effects of Bio-security and Sanitation on Finishing Performance and Cost
Pass Fail P-ValuePRRS+, % 48 73 0.001ADG,g 831 804 0.001F/G 2.88 2.97 0.001Mortality, % 4.8 5.5 0.11Top Markets, % 91.6 91.3 0.59O.C. Total, $/pig $3.51 $7.41 0.02Difference, $/pig $3.90
Dritz, 2011
Genetic Affects
Productivity and feed cost are significantly affected by genetics, both between genetic lines and within genetic lines
Feed Processing
Feed processing techniques have major effects on F/G, feed cost and animal performance
To Pellet or not to Pellet? Pelleted Feeds
Improve feed conversion Improve ADG Increase mortality Increase feed processing cost Improve profitability???
Pelleted Feed Mortality
Genotype Feed interruptions Health and bio-security
Bottom line
To Pellet or not to Pellet? System-specific decision
Ingredient cost Mortality risk
Genotype Herd health status Location disease pressure
If you are going to pellet, make good ones
DDGS is the Best Alternative Ingredient Opportunity
Market Price, $/ton Value, $/ton
Corn $121 $121Soybean Meal $297 $297Wheat Midds $80 $95Pork Meat & Bone Meal
$410 $371
Dried Bakery Product $126 $133DDGS $106 $140 - 220
Shadow Prices
DDGS in Animal Feeds Use will typically reduce diet cost
Variable nutrient content Unpredictable animal performance Limits use and savings
Knowledge of nutrient content is key Consistent performance Minimize feed costs
DDGS Variation Overview
VALUE OF ILLUMINATE BETWEEN PLANTS - Swine
Top 50% vs Bottom 50% $318 vs $268 / ton DDGS
20% Inclusion = $ 2.97 / pig 30% Inclusion = $ 4.46/ pig 40% Inclusion = $ 5.94 / pig
Top 25% vs Bottom 25% $334 vs $257 / ton DDGS
20% Inclusion = $ 4.57 / pig 30% Inclusion = $ 6.86 / pig 40% Inclusion = $ 9.14 / pig
®
*Cost per pig is based on 100 kg gain and 2.7 Feed Conversion
DDGS Summary: DDGS are a very good high quality feed
ingredient for both pigs, poultry, and ruminants.
Variation is wide between plants, but understanding difference can be attained.
Changes in Ethanol plants will continue to drive variation of nutrient values.
Proper information can allow for accurate use and possible increased inclusion rates.
Feed Additives Feed additives can
be valuable tools in increasing productivity and reducing feed cost
Phytase Widely used in U.S. swine diets Releases phytate-bound phosphorus Also releases energy and may improve
amino acid digestibility Not as valuable in high DDGS diets
Phosphorus bio-availability in DDGS is good Takes knowledge to use it properly
Seeing soft bones in many U.S. herds
NSP Enzymes Not widely used in U.S. diets Ingredients used in U.S. not conducive
NSP enzyme effectiveness Response has been variable Still promoted by many feed companies Mannanase used in some systems to
improve soybean meal digestibility
Impact of Stafac (10 g/ton) on Heat Stressed Barrows
ADG (lbs.)
Heat stress significantly reduced ADG (P<.05)
Stafac improved ADG in both, thermoneutral and heat stress environments (P<.10)
2.51a2.67a
1.57b1.76b
1.00
1.50
2.00
2.50
3.00
Thermoneutral Heat Stress
Controls Stafac 10
Within each period, treatment values with unlike superscripts differ at P<0.05
Impact of Stafac (10 g/ton) on Heat Stressed Barrows
Feed Efficiency (F/G)
Heat stress significantly increased F/G (P<.05) in both treatment groups
Stafac significantly improved F/G (P<.05) in both environments, dramatically more in the heat stress environment
3.03a
2.89b
3.66c
3.28d
2.00
2.50
3.00
3.50
4.00
Thermoneutral Heat Stress
Controls Stafac 10
Within each period, treatment values with unlike superscripts differ at P<0.05
Risk Management
With recent volatility in commodity markets, risk management has become an important task for profitable swine producers
Summary Feed cost is 70% of total cost of
production
Successful producers will carefully manage all aspects of feeding and nutrition to maximize profitability
This is a complex task!