Minimizing Feed Costs for Improved Profitability

Transcription

1 Minimizing Feed Costs for Improved Profitability Joel DeRouchey, PhD, Mike Tokach, PhD, Steve Dritz, DVM, PhD, Bob Goodband, PhD, and Jim Nelssen, PhD RESEARCH and EXTENSION

2 Feed Efficiency High feed disappearance Low ADG Other factors F/G = Total feed delivered Weight out Weight in

3 High feed disappearance Feed Feed Efficiency Low ADG Other factors Genetics Disease Particle size Feed wastage Genetics Diet form Temperature Feed availability Mortality Water availability Feed delivery Amino acid deficiency Low Energy diets Diet deficiency Temperature

4 What to do with high corn and soybean meal prices? Dietary ingredients Evaluating alternatives Added Fat Synthetic amino acids DDGS Glycerol Whey Work with what you have: Improve F/G Feed budgets and phase feeding Particle size evaluation Feeder management Genetics Watch market weights

5 Alternative Feed Ingredients Animal Performance Cost Processing Storage Quality Control Agronomics

6 Alternative Ingredient Sources Partial Replacements Distillers grains Most common but regional Fats / Oils 2.25 times energy as corn Use has dramatically reduced due to cost AV blends vs. only vegetable or choice white grease

7 Alternative Ingredient Sources Wheat midds Bulk density Low energy - Monogastrics Bakery products Variability and availability Meat and bone meal Variability of product 5 10% of the diet Grain screenings Variability and potential mycotoxins Off quality grains Low test weight

8 Feed Bridging Results in Pigs Out of Feed

9 Determining the economics of adding fat to a grain-soybean meal diet Increased cost of the diet F/G improvement with fat 2% improvement for every 1% fat ADG improvement with fat 1% improvement for every 1% fat (average) 2% improvement in early grower No improvement in late finisher

10 Increasing dietary energy density with added fat: Analysis of field experiments 9 in field research facilities (total of 9,899 pigs) Analyzed for the percent change in ADG and F/G per % added dietary fat (using Proc Mixed in SAS) Model included: Pig body weight Feed intake as a percentage of body weight Fat level Disclaimers: Field data from 2 systems PIC 327 or 337 sires

11 Net return, $/pig Prices Prices Corn, $/bu $ 4.50 Carcass price $ SBM, $/ton $ Est. live price Fat, $/cwt $ Grind/mix/delivery, $/ton $ $0.50 $0.40 $0.30 $0.20 $0.10 $- $(0.10) $(0.20) $(0.30) $(0.40) $(0.50) $0.10 $0.15 $0.13 Diet 1 Diet 2 $0.14 $(0.03) Diet 3 $(0.19) $(0.16) Diet 4 $(0.49) $(0.28) Diet 5 Calculator available at 2.5% fat 5% fat $(0.05) Paylean $(0.21)

12 Added Fat Summary Remember that energy level drives ADG with high lean pigs in field conditions! Should I have fat in my diets currently? Long on space = No Gain improvements not required while increasing feed cost Short on space = Yes Evaluate net return and determine optimum level of fat by dietary phase. 2.5% for entire finishing = 3.2 lbs heavier pig 5.0% for entire finishing = 6.1 lbs heavier pig

13 Using added fat for dust control A common practice to reduce dust in the barns is to use 1% added fat Current feed cost increase for dust control in finishing is $1.13 / pig from 50 to 250 lbs. Current feed cost increase for dust control in finishing is $0.75 / pig from 120 to 250 lbs. Simply cannot afford dust control in finishing diets

14 Evaluating diet cost with low protein amino acid fortified diets Low Protein Amino Acid Price Calculator Price, $ Corn 4.50 $/bu Soybean meal 340 $/ton L-Lysine 0.95 $/lb DL-Methionine 1.35 $/lb L-Threonine 1.20 $/lb Savings per pig with AA fortified diet, $ $0.61 Calculator available at

15 DDGS - Growth Performance and Carcass Characteristics Research is inconsistent when feeding DDGS on grow-finish pig performance. Several studies have demonstrated decreased growth performance levels above 10% Other studies suggest feeding DDGS at levels up to 30% have no negative effect on growth performance However - negative results on carcass yield and fat quality are clearly demonstrated

16 DDGS Effects on Yield % DDGS level, % Reference 0% 10% 20% 30% Diff. for each 10% DDGS Cook et al., 2005, Akey Whitney et al., 2006, U of MN Xu et al., 2006, U of MN Linneen et al., 2007, KSU Gaines et al., 2007, JBS United Gaines et al., 2007, JBS United Average difference for each 10% DDGS -0.42

17 Yield, % Effect of DDGS withdrawal time on dressing percent 77.1 Control 30% DDGS Control None 3 wk 6 wk Withdrawal before market JBS United, 2007

18 What does the carcass yield reduction mean? Corn-Soy- Corn-soy only 10% DDGS Final Live wt, lb Dressing % Carcass wt., lb Carc. Wt., diff., lb Net Revenue $0.55/lb ($ 0.61)

19 DDGS Value Calculator with no performance change Corn, $/bu $ 4.50 SBM, $/ton $ Monocal, $/ton $ Limestone, $/ton $ Lysine HCl, $/lb $ 0.95 DDGS, $/ton $ DDGS, % 10% 20% 30% Change in diet cost, $/ton -$4.46 -$7.13 -$8.63 Approximate savings, $/pig $1.34 $2.14 $2.59 Breakeven price, $/ton $ $ $ Calculator available at

20 DDGS Value Calculator with Carcass Yield Impact Pig Carcass weight, lb Carcass price, $/cwt $ Yield reduction for each 10% DDGS 0.4% DDGS, % 10% 20% 30% Yield cost per pig $0.44 $0.88 $1.32 Approximate savings, $/pig $0.90 $1.26 $1.27 Breakeven price, $/ton $ $ $ Calculator available at

21 DDGS - Summary Currently, feeding up to 20% DDGS is the generally the most economical in grow-finish diets in most situations These levels may or may not decrease performance How to handle yield impacts withdraw or ignore Feeding 20% DDGS should not by itself increase carcass IV values over 73 However, feeding this level along with an unsaturated fat source more then likely will

22 Gylcerol for swine diets Gylcerol is the resulting product of the bio-diesel industry Pure glycerol is a colorless, odorless, and a sweettasting viscous liquid (when fresh) Much less is known about its use in livestock feeding Currently numerous National Pork Board and state pork association funded experiments underway Fall 2007 price = ~ $0.06 / lb Current price = ~ $ / lb

23 ADG, lb Effects of glycerol and soy oil on growth performance of growing pigs (25 to 55 lb) Soy oil, quadratic P < 0.07, glycerol and blend linear P < Control Soy Oil, % Groesbeck et al., 2008 Glycerol, % Soy/glycerol blend, %

24 ADG, lb Effects of glycerol and DDGS on growth performance of finishing pigs (70 to 217 lb) 2.3 Corn-soy 20% DDGS Glycerol, % Duttlinger et al., 2008

25 ADG, lb Effects of glycerol and fat on growth performance of finishing pigs (170 to 220 lb) 2.2 Glycerol % 5% Corn-soy 6% fat Duttlinger et al., 2008

26 Fresh Glycerol on arrival Glycerol after 3 months in refrigerator

27 Dried Whey for 15 to 25 lb pigs In recent trials at K-State with 15 to 25 lb pigs, removing the 10% dried whey from the diet lowered pig weight by 0.5 to 1 lb/pig (Bergstrom et al., 2007). The savings achieved by lowering feed cost was greater than the value of weight that was lost by using the more simple diet without a lactose source. Typically, dried whey must be priced at approximately $0.35 per lb to breakeven when comparing feed cost and gain.

28 Dried Whey for 15 to 25 lb pigs Obviously, if a more economical lactose source could be found or the diets reformulated with another strategy to achieve the higher final weight without the increased feed cost, it would be beneficial. If a lactose alternative is not found; however, the most economic recommendation would be to feed the simpler diets and accept the lower ADG resulting from the decision. Less drastic compromise Divide into 2 phases with the first diet containing lactose source while the second diet does not. Still maintain fishmeal and/or blood meal in both diets No pig over 25 lb should ever receive lactose in the diet

29 Feed Budgets and Phase Feeding Follow budgets carefully Over budgeting simply increases cost due to overfeeding nutrients Under budgeting can limit growth by causing pigs to be deficient in nutrients. Additional diet phases can reduce feed costs

30 Nursery feed budgets Weaning weight, lb SEW Transition Phase to 15 lb Phase to 50 lb

31 Do we still recommend split sex feeding? Can you fill a room/barn (feed line) with less than 7 days of age spread of one sex? If answer is no, you should minimize age spread rather than housing by sex. If split sex feeding, same diets can be used for both sexes with different feed budgets to account for higher F/G of barrows

32 Every 100 microns = F/G increases by 1.2%

33 Effect of Particle Size on Nutrient Digestibility Particle Size Digestibility, % Microns DM CP Energy F/G < > KSU, 1985 Based on pig performance and grinding considerations, we recommend a particle size of 700 microns with a range of 600 to 750 microns

34 Particle size Economics 1.2% change in F/G equals - ~ 7 lbs of feed per finishing pig $0.68 change in current per pig feed cost Measure weekly on farm, monthly with lab

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36 One-Sieve Three-Sieve

37 Deviation from actual Accuracy of the One-Sieve Method % of Samples are within ± 100 microns Actual Partcle Size, microns Baldridge et al. 2001

38 Deviation from actual Accuracy of the Three-Sieve Method Procedures for three-sieve method available at % of Samples are within ± 100 microns Actual particle size, microns Baldridge et al. 2001

39 Effects of Decreasing Particle Size (700 microns) Increases particle surface area Allows for greater interaction with digestive enzymes Increased nutrient digestibility and decreased nutrient excretion Improved feed efficiency

40 Disadvantages of Grinding Too Fine ( < 600 microns) Increased dustiness Increases electrical costs Increased time Decreased feed flowability Increased gastric ulcers

41 Basics: Adjust the feeders frequently Picture available at

42 If your fingers don t hurt, you re not adjusting feeders enough. Proper Feeder Adjustment

43 Joel DeRouchey, PhD, Mike Tokach, PhD, Steve Dritz, DVM, PhD, Bob Goodband, PhD, and Jim Nelssen, PhD