Feed Costs and Efficiencies
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1 Feed Costs and Efficiencies Joel DeRouchey, PhD, Bob Goodband, PhD, Mike Tokach, PhD, Steve Dritz, DVM, PhD, and Jim Nelssen, PhD
2 Ingredient price increases 2000 to 2006 March 2008 June 2011 Corn, $/bu $2.03 $5.00 $7.25 SBM, $/ton $185 $341 $350 DDGS, $/ton ---- $140 $200 CWG, $/cwt $14.4 $33.0 $50.0 Dical, 18.5%, $/cwt $11.59 $20.4 $28.0 Dried whey, $/cwt $25.5 $30 $60 L-lysine HCl, $/cwt $86 $94 $120
3 Feed Efficiency High feed disappearance Low ADG Other factors F/G = Total feed delivered Weight out Weight in
4 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
5 Ingredients Whey Added fat DDGS Paylean Presentation Outline Feed withdrawal prior to marketing Feed processing and management Current diet costs examples International Conference on Feed Efficiency
6 ADG, lb Influence of whey source on nursery performance (Day 5 to 19 after weaning) b 0.77 b SE = 0.03 ab = P < a a 0.68 ab 0.72 a ab a Control A B C D E F G Bergstrom et al., 2007 Whey source
7 Margin over feed, $/pig Influence of whey source on nursery 5.00 performance ($0.35 whey) Control A B C D E F G Bergstrom et al., 2007 w/ June 2011 prices Whey source
8 Margin over feed, $/pig Influence of whey source on nursery 4.75 performance ($0.60 whey) Control A B C D E F G Bergstrom et al., 2007 w/ June 2011 prices Whey source
9 Added Fat Calculator available at Net return, $/pig Corn, $/bu $ 7.25 Carcass price $ SBM, $/ton $ Est. live price Fat, $/cwt $ Grind/mix/delivery, $/ton $ $0.40 $0.11 $0.15 $0.10 $0.04 $- $(0.17) $(0.19) $(0.40) $(0.43) $(0.52) $(0.63) $(0.52) $(0.80) 2.5% fat $(1.20) 5% fat $(1.09) $(1.60) $(1.49) $(2.00)
10 Added Fat Recommendations Should I have fat in my diets currently? Long on space = No - Gain improvements not required while increasing feed cost Short on space = Yes/No/Maybe - Evaluate net return and determine optimum level by dietary phase. - Strategy should be different as economics change Which season are pigs to be marketed? Pigs placed in midsummer/fall/early winter months can/should forgo added fat due to growth rate improvements to come with cooler weather. Summer marketed pigs should have begun to receive added fat in March to capture growth rate.
11 Using added fat for dust control A common request is to reduce dust by using 1% added fat (currently $0.50/lb) F/G could improve by 0.04 from higher energy ADG too minor to have measurable effect Current feed cost increase (F/G improvement accounted for) for dust control in finishing is $1.10 / pig from 50 to 250 lbs! Can not afford dust control in finishing diets
12 DDGS Value Calculator with no performance change Corn, $/bu $ % = DDGS:Corn price ratio SBM, $/ton $ Monocal, $/ton $ Limestone, $/ton $ Lysine HCl, $/lb $ 1.20 DDGS, $/ton $ Change in diet cost, $/ton F1 F2 F3 F4 F5 F6 10% DDGS -$9.82 -$9.70 -$9.52 -$9.59 -$9.29 -$ % DDGS -$ $ $ $ $ $ % DDGS -$ $ $ $ $ $ % DDGS -$ $ $ $ $ $31.81 Savings in feed cost/pig F1 F2 F3 F4 F5 F6 Total 10% DDGS $0.28 $0.66 $0.68 $0.68 $0.39 $0.42 $ % DDGS $0.51 $1.23 $1.25 $1.24 $0.73 $0.73 $ % DDGS $0.73 $1.72 $1.77 $1.75 $1.03 $1.06 $ % DDGS $0.92 $2.20 $2.27 $2.26 $1.33 $1.36 $10.34
13 Voila! Poet's corn oil Technology Arrives Approximately 10 million pounds of corn oil will be produced this year at the 57 MMgy Poet Biorefining-Hudson (S.D.) ethanol plant and sold into the biodiesel and feed markets, says Clayton Vaughan, director of business development at Poet Nutrition. The plant is the first of Poet's 27 production facilities to produce the company s trademarked Voila corn oil, which is extracted through technology installed on the back end of the fermentation process. According to Poet, because the corn oil is captured after corn is subjected to the company's unique cold-cook fermentation process, the oil produced contains a low free fatty acid, making it a high quality product. Plans are being finalized to install the technology at Poet's other plants, this year Vaughan says. Kris Bevill Ethanol Producer Magazine, May 2011
14 Optimizing Paylean Use
15 Weekly wt gain benefit, lb Effect of ractopamine on weight gain, lb (By week) x + 3.7; r 2 = x ; r 2 = Week 1 Week 2 Week 3 Week 4 Duration of ractopamine feeding 4.5 g/ton 9 g/ton Dose (P = 0.06) Duration = linear (P < 0.05) Summary of 12 experiments Kelly, Purdue University
16 Weight, lb Effect of Paylean Feeding Program on Final BW (day 28) b ab Superscripts differ, P < 0.05 SEM = b b a Control Constant 6.75 g/ton Step-up d Curve g/ton ddaily increase from g/ton 4.5 to 9.0 g/ton Ying et al., 2011
17 F/G Effect of Paylean Feeding Program on F/G (day 0 to 28) a abc Superscripts differ, P < 0.05 SEM = b c bc 2.20 Control Constant 6.75 g/ton Step-up Curve d g/ton Daily increase from d g/ton 4.5 to 9.0 g/ton Ying et al., 2011
18 Feed Withdrawal Prior to Slaughter
19 Lb Change Lb Change Feed Withdrawal on Live Weight Reduction 48 hr prior to Slaughter Exp 1 Exp Linear P < Quadratic P < Feed withdrawal, hr Feed withdrawal, hr Frobose et al., 2010
20 Feed, lb/pig Feed, lb/pig Feed Withdrawal on Feed Intake per Pig Exp 1 Exp Quadratic P < 0.01 Linear P < Feed withdrawal, hr Feed withdrawal, hr Frobose et al., 2010
21 Percentage Percentage Feed Withdrawal on Yield Exp 1 Exp Quadratic P <.01 Linear P < Feed withdrawal, hr Feed withdrawal, hr Frobose et al., 2010
22 Carcass Wt Feed Withdrawal on Carcass Weight Based on 280 lb live weight at 48 hr prior to slaughter Carcass Wt, lb Exp 1 Exp Feed withdrawal, hr Feed withdrawal, hr Frobose et al., 2010
23 Feed Processing and Management
24 Every 100 microns = 1. F/G improves by 1.2% 2. 7 lbs less feed/finishing pig 3. Current $0.96/pig savings in feed cost
25 Grain Particle Size F/G is linear for decreasing or increasing particle size Lack or research in high co-product diets Less corn in rations is the F/G response as large in current US diets??? DDGS grinding data is mixed, more data is needed Whole diet grinding more data needed Grind it fine then pellet for flow ability Takes more time/energy to grind finer, however, less tonnage is manufactured
26 Pelleting for Commerical Finishing Pigs Feeding a pelleted diet improved ADG: Exp. 1 = 7.0% Exp. 2 = 4.5% Feeding a pelleted diet improved G:F: Exp. 1 = 5.4% Exp. 2 = 2.1 Diet formulation did affect pellet quality, which may explain differences between the experiments (Exp. 2 higher co-product) Barnes et al., 2010
27 Feed Budgets and Phase Feeding Follow budgets carefully Over budgeting simply increases cost due to overfeeding nutrients - i.e. no lactose or specialty ingredient needed after 25 lb body weight Under budgeting can limit growth by causing pigs to be deficient in nutrients
28 Wet Dry vs Dry Feeders Trial ADG FG Lean IOFC* 1 Pos No Diff Pos Neg Neg Neg 3 Pos Neg Neg Neg 4 Pos Pos -- Pos (Live Wt Basis) 5 Pos No Diff Neg Neg 6 Pos No Diff Neg Pos 7 Pos No Diff No Diff No Diff 8 Pos Neg Neg Neg Bergstrom et al., 2010 and 2011
29 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
30 Marketing strategy - Management messages Minimize age spread within a barn to minimize variation Determine optimal weight for your market Understand impact of market price and feed cost on optimal weight Top barns aggressively when weight bypasses optimum Low market price, winter Less topping when weights are below optimum High market price, summer 30
31 Example Diets with Alternatives Phase = lb of body weight Corn = $7.25/bu SBM, 46.5% = $350/ton DDGS = $200/ton Wheat midds = $200/ton Meat and Bone = $480/ton Moncal P, 21% = $600/ton L-Lysine = $1.20/lb
32 Higher Meat & Wheat DDGS & Ingredient Normal AA bone DDGS midds midds Corn SBM, 46.5% Meat & bone meal 100 DDGS Wheat middlings Lysine HCl DL-Methionine L-Threonine Monocal P, 21% P Limestone VTM & Salt SID Lys:ME, g/mcal SID Lys SID Met & cys:lys SID Thr:lys SID Trp:lys ME, kcal/lb 1,515 1,515 1,513 1,522 1,483 1,487 CP, % Available P, %
33 Higher Meat & Wheat DDGS & Ingredient Normal AA bone DDGS midds midds Corn SBM, 46.5% Meat & bone meal 100 DDGS Wheat middlings Lysine HCl DL-Methionine L-Threonine Monocal P, 21% P Limestone VTM & Salt Diet w/ processing $ $ $ $ $ $ Budget, lb/pig Feed cost, $/pig $17.81 $17.87 $18.25 $16.22 $17.28 $15.64 F/G
34 Take Home Thoughts Evaluate dietary ingredients Nutrient analysis Optimal use and time of year decisions Work with what you have to improve F/G Feed budgets and phase feeding Particle size evaluation Feeder management Genetics Watch market weights
35 K-State Web Resources DDGS Calculator Synthetic Amino Acid Calculator Fat Analysis Calculator Feed Budget Calculator Feeder Adjustment Cards Particle Size Information Marketing Calculators Gestation Feeding Tools
36 International Conference on Feed Efficiency in Swine Hilton Hotel/Qwest Center, Omaha, NE November 8th and 9th, 2011 Conference Objective To provide in a single forum, the current state of the art on all aspects of feed efficiency in growing/finishing swine. As such, more than a dozen diverse topics ranging from in-barn management to nutrition to genetic selection will be addressed. 36
37 International Conference on Feed Efficiency in Swine Audience This conference will appeal to anyone with a highly technical interest in pork production, including pork producers, industry suppliers (feed, genetics, ingredients, additives, equipment, etc.), consultants (nutritionists, geneticists, veterinarians, etc.), researchers (faculty and students) and pork producer organizations.
38 International Conference on Feed Efficiency in Swine For More Information Dr. John Patience, Iowa State University jfp@iastate.edu Dr. Mike Tokach, Kansas State University mtokach@ksu.edu Dr. Joel DeRouchey, Kansas State University jderouch@ksu.edu
39 Thank you! K-STATE RESEARCH and EXTENSION
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