Avoiding Disasters in Swine Nutrition November 19 th, 2013 Saskatoon, SK Mario Ramirez
What Kind of Disasters Can we Avoid? Killing all the pigs Buying expensive raw materials Using wrong diet specifications Having wrong performance expectations Using too many restrictions on ingredients Not responding to market requirements Using too many or the wrong additives Only One Disaster: Losing Money
Killing all the Pigs, still possible?
Talking about Disasters!!!
What Factors affect Feeding cost? Raw material prices Nutritional diet specifications Desired (expected?) performance Restrictions on Ingredients Pork market requirements Special demands Additives Feed processing and feed wastage
Managing Raw Material Prices Attitude to risk and exposure to market forces Desired level of flexibility in responding to unforeseen events How much time can be devoted to monitoring the market and managing risk Practical issues, such as storage facilities, and Any cash flow requirements during the year.
Raw material prices (Strategies) 1. Do nothing: buy all on spot market, as/when required 2. Buy 50% forward now 3. Buy 100% forward now 4. Buy 50% forward now and cover with an Option 5. Buy 100% forward now and cover with an Option
Nutritional Diet Specifications Energy Amino Acids Macro Minerals Trace Minerals Vitamins 95 % of feed cost
Choosing the Right Energy Level Pig Grower Diet 30 to 60 kg * Difference Net Energy in Mcal/kg 2.4 2.52 5.00 % Feed Cost $/MT $ 251.38 $ 276.51 9.99 % Net Energy Cost $/Mcal $ 0.1047 $ 0.1097 4.76 % Feed Intake kg/day ** 1.856 1.767 4.80 % Energy Intake Mcal/day 4.231 4.231 0.00 % Average Daily Gain kg/day 0.818 0.818 0.00 % Feed Conversion kg/kg 2.269 2.160 4.80 % Energy Conversion Mcal/kg 5.172 5.172 0.00 % Feed Cost per kg Gain $ 0.57 $0.60 4.72 % * Calculated with the NRC Swine 2012 Models ** Includes 5% estimated feed wastage
Nutritional Diet Specifications and Performance
Amino acid requirement? 11
Nutritional Diet Specifications, Who Gives Them? Who Has The Truth? Universities Research Centers Genetic Companies Nutrition Companies Nutrition Consultants Free Lancers Own Ideas
Nutritional Diet Specifications Who Gives Them? Who Has The Truth?
Amino Acid Ratios NRC Swine 2012
Is it worth increasing Amino Aacid levels? Pig Grower Diet 30 to 60 kg * Difference SID Lys:NE g/mkal 3.79 3.98 5.00 % Feed Cost $/MT $ 251.38 $ 258.98 3.02 % Feed Intake kg/day ** 1.856 1.856 0.00 % Lean Tissue Gain kg/day *** 0.350 0.382 9.14 % Carcass Back Fat mm *** 19.0 16.5 13.16 % Average Daily Gain kg/day 0.818 0.871 6.48 % Feed Conversion kg/kg 2.269 2.131 6.08 % Feed Cost per kg Gain $ 0.57 $0.55 3.25 % * Calculated with the NRC Swine 2012 Models ** Includes 5% estimated feed wastage *** Assuming that the pigs have the genetic potential
Factors affecting Ingredient Inclusion Rates Ingredient Price Anti nutritional factors Mycotoxin levels Fiber levels Iodine Value Own Inventory Space availability (Ingredient bins) Personal preference Fashion Own Ideas
Restrictions on Ingredient Inclusion Rates
Restrictions on Ingredient Inclusion Rates
Restrictions on Ingredient Inclusion Rates
Restrictions on Ingredient Inclusion Rates Maximum Inclusion Levels for Alternative Ingredients Corn DDGS 30 % Wheat DDGS 30 % Canola 30 % Peas 30 % Lentils 30 %
Pork Market Requirements Carcass weight Dressing percentage Lean Yield Marbling Iodine Value Meat color Shelf life Organic Pig Veggie Pig
Feed Additives Growth Promoters Enzymes Acidifiers Antioxidants Mold inhibitors Mycotoxin binders Organic minerals Essential Oils Carnitine Betaine CLA Prebiotics Probiotics
Feed Formulation; least cost? Or best cost?
Feed Formulation Programs Leonid Kantorovich, Russian mathematician First developed Linear programming, in 1939 It was used during World War II to plan expenditures and returns in order to reduce costs to the army and increase losses to the enemy The method was kept secret until 1947 when George B. Dantzig published the simplex method and John von Neumann developed the theory of duality Postwar, many industries found its use in their daily planning Used today in most formulation programs
Feed Formulation
Summary Get involved in the ingredient market Select the optimal diet specification Be flexible in the selection of ingredients Accept some risks on inclusion levels Minimize the number of restrictions Be open minded to use alternative ingredients Ensure good feed processing Get professional advice
The Chain Is No Stronger Than Its Weakest Link Thank you!