Reducing cost by optimizing feed formulation Peadar Lawlor
Introduction Price : Cost Squeeze You can do little to increase pig price But you have some control over feed cost per kg gain Addressing many factors can help feed cost per kg gain Not just the price paid per tonne of feed, but Here we look at ways to make a tonne of feed less expensive 1. Diet formulation / Ingredient composition 2. Pelleting 3. Enzyme addition 4. More accurate formulation 2
1. Diet formulation / Ingredients 3
1. Ingredient composition Ingredient prices from 3 commercial sources (1 st October 2018) Formulated a series of finisher diets based on a distinct spec. Item Constraints Crude protein 16% Net Energy 9.8 MJ/Kg SID lysine 0.96 %* Digestible P 2.4g/kg Crude Fibre 2.5-5.0 % * Ideal Protein: Thr, 65%; Met, 30%, Met + Cys, 60%; Trp, 19%; Val, 65%; Ile, 53%; Leu, 100% 4
1. Ingredient composition a. Cereal diet Ingredient % Inclusion Min. Max. Price ( /t) Wheat 50.0 50.0 220 Baseline Barley 32.9 222 Soya Hi-Pro 14.3 340 Soya oil 0.5 690 Balance 2.3 100.0 5 253.54 / tonne 258.54 / tonne
1. Ingredient composition b. Least Cost diet Ingredient % Inclusion Price ( /t). Upper ( /t) Maize 73.6 182 182 Sunflower Ext 9.3 225 225 Soya Hi-Pro 7.6 340 340 Rape seed meal 00 7.0 256 261 28.32 /tonne Sunflower? Balance 2.5 100 6 225.22 / tonne 237.29 / tonne
1. Ingredient composition c. Least Cost Diet excluding sunflower - SAFE Ingredient % Inclusion Price ( /t). Upper ( /t) Maize 67.1 182 199 Rape seed meal 00 21.9 256 258 27.59 /tonne (+ 0.73 /tonne) Wet feeding? Soya Hi-Pro 5.0 340 347 Wheat pollard EU 3.9 210 216 Balance 2.1 Total 100.0 7 225.95 / tonne 240.00 / tonne
1. Ingredient composition d. Maize capped at 20% inclusion* Ingredient % Inclusion Min. Max. Price ( /t). Upper ( /t) Wheat 49.6 50 220 241 Maize 20.0 20 182 212 Wheat pollard EU 16.9 210 212 Soya Hi-Pro 11.0 340 342 Balance 2.5 Total 100.0 241.15 / tonne 12.39 /tonne Less blockages? 8 *To within 1 of other LC formulations. Reduced ingredient no. (Rapeseed + Pol) 249.73 / tonne
1. Ingredient composition e. Maize capped at 50% inclusion* Ingredient % Inclusion Min. Max. Price ( /t). Upper ( /t) Maize 50.0 50 182 212 Wheat pollard EU 22.8 210 212 Wheat 12.5 50 220 241 Soya Hi-Pro 12.2 340 342 Balance 2.50 Total 100.0 232.04 / tonne 21.50 /tonne 9 *To within 1 of other LC formulations. Reduced ingredient no. (Rapeseed + Pol) 243.37 / tonne
1. Ingredient composition f. Maize only Ingredient % Inclusion Price ( /t). Upper ( /t) Barley 40.8 222 280 Maize (Corn) 39.7 182 207 Soya Hi-Pro 17.2 340 372 Balance 2.3 241.00 / tonne 100.0 12.54 /tonne Will get twice the price reduction by bringing in more than just maize. 10 249.37 / tonne
11 1. Ingredient composition g. Pot Ale syrup* Ingredient % Inclusion Min. Max. Price ( /t). Upper ( /t) Wheat 50.0 50 225 253 Barley 32.9 227 240 Soya Hi-Pro 8.3 340 940 Pot Ale Syrup (87% DM) 6.0 6 6 160 229 Balance 2.8 Total 100.0 248.04 / tonne 253.12 / tonne 32% DM 59/tonne liquid At 87% = 160.41 Saving = 5.50/t
1. Ingredient composition RECAP October prices Diet Type Feed price ( /tonne) Saving ( /tonne) a. Cereal diet 253.54 - b. Least Cost diet 225.22-28.32 c. Least Cost Diet (Low risk) 225.95-27.59 d. Maize capped at 20% 241.15-12.39 e. Maize capped at 50% 232.04-21.50 f. Maize only 241.00-12.54 g. Pot-ale syrup 248.04-5.50 12 Can realise a 28.32 / tonne price reduction
1. Ingredient composition RECAP September prices Diet Type Feed price ( /tonne) Saving ( /tonne) a. Cereal diet 258.54 - b. Least Cost diet 237.29-21.25 c. Least Cost Diet (Low risk) 240.00-18.54 d. Maize capped at 20% 249.73-8.81 e. Maize capped at 50% 243.37-15.17 f. Maize only 249.37-9.17 g. Pot-ale syrup 253.12-5.42 13 Can realise a 21.25 / tonne price reduction
1. Ingredient composition Caution Spot prices on Oct 1 st for Oct-Dec 2018 Some ingredients can vary greatly in AA and energy content Get as much information on the ingredient batch as possible Formulate using this information May have to set inclusion limits for some ingredients Ensure the premix is changed!! 14
1. Pelleting 15
Cost Benefit of Pelleting To a target slaughter weight of 110kg Meal Pellet FCR 2.34 2.26 Initial wt (kg) 33.6 33.7 Kill Out (%) 74.6 75.1 Final weight (kg) 110 110 Feed price ( /tonne) 300 300 Total Feed/ pig (Kg) 178.78 172.44 Total feed cost ( /pig) 53.63 51.73 Price per kg DW ( /kg) 1.42 1.42 Carcass weight increase (kg) 59.21 59.69 Value of increased Carcass weight ( ) 84.08 84.77 Margin over feed ( /pig) 30.45 33.03 16
Benefit of Pelleting To a target slaughter weight of 110kg Meal Pellet Final weight (kg) 110 110 Margin over feed ( /pig) 30.45 33.03 Benefit of feeding pellets ( /pig) 2.59 Margin over feed ( /tonne of feed) 170.32 191.57 Benefit of feeding pellets ( /tonne of feed) 21.26 OCT 5 th 2018 21/T 17
2. Pelleting Pelleting improves FCE: nutrient digestibility feed wastage during feeding If purchasing feed and Dry or Wet/Dry feeding: Feeding a pelleted diet is worth 20-21/tonne of feed Net benefit of 15-16/tonne of finisher feed 18
3. Enzyme addition 19
3. Enzyme addition Role for enzymes when diets are formulated close to pigs requirements Improve FCE & financial benefit when feed price Most consistent results when: Mannanase supplemented to corn based diets Complex of enzymes supplemented to corn, wheat or barley diets Protease supplemented to barley diets Low density diets 20
PIG-ZYME: Exp.1: Rapeseed-based diets (dry-pellets) Phytase: Protease: 21-100 g/kg 2.59 2.49 2.5 2.0 1.5 FCR, g/g From 30 to 105kg 7.5kg less feed 2.25/pig
PIG-ZYME: Exp.2: Field bean-based diets (dry-pellets) Protease: - 70 g/kg 2.5 2.31 2.24 22 2.0 1.5 FCR, g/g From 30 to 105kg 5.3 kg less feed 1.59/pig
PIG-ZYME: Exp. 4: Liquid feeding and cereal based diets Xylanase + β-glucanase: - 100 g/kg 3.0 2.76 2.66 23 2.5 2.0 1.5 FCR, g/g From 30 to 105kg 7.5kg less feed 2.25/pig
5. More Accurate Diet formulation 24
5. More Accurate Diet formulation One size no longer fits all we simply don t have the luxury Range of growth rates and intakes on Irish units Yet, few feed unit specific diets Must know the growth rate and the intake of your pigs Allows formulation of bespoke diets for your pigs Optimising growth and efficiency Cost reduction 25
Summary Changing diet formulation can reduce feed price by ~ 28/t If feeding purchased diets the net benefit from pelleting is ~ 15/t Selected enzyme addition esp. to low density diets is worth ~ 9-13/t One size no longer fits all we need to feed bespoke diets Remember its not only feed price per tonne that dictates your feed cost per kg gain! 26 Questions?