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Feed Price Update and Daily Feed Efficiency Drivers Joel DeRouchey, Mike Tokach, Bob Goodband and Steve Dritz Kansas State University www.KSUswine.org.

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Presentation on theme: "Feed Price Update and Daily Feed Efficiency Drivers Joel DeRouchey, Mike Tokach, Bob Goodband and Steve Dritz Kansas State University www.KSUswine.org."— Presentation transcript:

1 Feed Price Update and Daily Feed Efficiency Drivers Joel DeRouchey, Mike Tokach, Bob Goodband and Steve Dritz Kansas State University

2 Presentation Outline Feed efficiency drivers to reduce feed cost Feed processing advancements Ingredient and diet pricing Additional resources

3 Means to Reduce Feed Cost Improved F/G = more profit? – Does the best achieving F/G producers mean they are the most profitable? – NO – Then is F/G tied to profitability? – YES, but is complicated based on individual situations. Lowest cost diet = optimal return? – No, diet energy must be accounted for to assure growth rate is not jeopardized for optimal marketing – Another complicated decision making process

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

5 Feeder Adjustment – Poor adjustment with pans greater than 60% covered can increase feed wastage, especially in late finishing – Old feeders with poor feeder design or inability to adjust will increase wastage

6 Meta-analysis results (15 experiments) ItemsDryWet-drySEMP - value Initial wt, lb Final wt, lb <0.01 ADG, lb <0.01 ADFI, lb <0.01 F/G Yield, % HCW, lb <0.01 BF, mm <0.01 Loin, mm Lean, % <0.01 Water disappearance, L/pig/d Nitikanchana et al., 2012

7 Same F/G Reduction in LeanPoor F/G Reduction in lean Dry Wet-Dry $/pig Feed cost = 306 $/ton, Carcass price = 0.88 $/lb, 1.5$/ %lean reduction Wet-dry feeder economic analysis (IOFC, Income over feed cost) Nitikanchana et al., 2012

8 Effective Temperature – If temperature is too low, pigs will increase their feed intake to maintain body temperature. Because the feed is going towards heat needs and not growth, feed efficiency will become poorer.

9 Effective Temperature Effect of environmental temperature on the performance of growing pigs (50 to 125 pounds) 1 Item Temperature, o F ADG, lb ADFI, lb Feed/gain Summary of 3 experiments; Stahly and Cromwell, 1979, 1981.

10 Disease or Other Stress – Disease problems that lower ADFI will greatly lower ADG. Mortality will increase F/G by about for each 1% increase in mortality when spread across the finishing period. – Stressors are additive Reducing stress will improve F/G

11 Update on Feed Processing Research to Reduce Costs

12 Effect of particle size and diet form on finishing pig performance (d 0 to 111; BW 57 to 288 lb) Particle size and portion ground De Jong et al., 2012

13 Effect of particle size and diet form on finishing pig performance (d 0 to 111; BW 57 to 288 lb) Particle size and portion ground De Jong et al., 2012

14 Effect of particle size and diet form on finishing pig performance (d 0 to 111; BW 57 to 288 lb) Particle size and portion ground De Jong et al., 2012

15 Effects of particle size on feed efficiency F/G Particle size, microns 1.2% per 100 microns 1.0% per 100 microns Particle size, microns

16 Every 100 microns = 1.F/G improves by ~1.2% 2.7 lbs less feed/finishing pig 3.Current $0.98/pig savings in feed cost

17 Grain Particle Size F/G directly impacted by particle size of cereal grains Research in high co-product diets: – While corn in diet is decreased, finishing pigs still respond similarly to improved F/G with reduced corn particle size – Whole diet grinding – not a benefit in meal diets – High fiber, low digestibly ingredients may be negatively affected by particle size reduction. Takes more time/energy to grind cereals finer, however, less total tonnage is manufactured by the mill. Testing method impacts results: – Lab using a flow agent will report a value approximately 80 µ lower then actual.

18 Average response = 5.0% for ADG and 4.0% for F/G 18

19 Effects of pellet quality on F/G in 30 to 70 lb pigs F/G a Nemecheck et al. 2012

20 Pellet quality Pellets with fines Good quality pellets Nemecheck et al

21 Effect of medium-oil DDGS on pig performance (d 0 to 67; BW 152 to 280 lb) Medium-oil DDGS Graham et al., % fat, 28.1% CP, 10.8% ADF, 25.6% NDF

22 Effect of medium oil DDGS on pig performance (d 0 to 67; BW 152 to 280 lb) Medium-oil DDGS (7.4% oil) Graham et al., 2012

23 Effect of medium oil DDGS on pig performance (d 0 to 67; BW 152 to 280 lb) Medium-oil DDGS (7.4% oil) Graham et al., 2012

24 Effect of medium oil DDGS on pig performance (d 0 to 67; BW 152 to 280 lb) Medium-oil DDGS (7.4% oil) Graham et al., 2012

25 Corn DDGS quality control Variability in DDGS quality – Main issue is fat level Fat, % NE, % Low = < 5% fat % Medium = 6 to 9% fat % High = > 9% fat % – Need to monitor DDGS quality or work with company that monitors DDGS quality – Ethanol plants guarantee often underestimate the true oil content – guarantee 6% but really 9%

26 Predicted Digestible and Net Energy of DDGS

27 Historical Ingredient Prices June 2009 June 2010 June 2011 June 2012 June 2013 Corn, $/bu$4.00 $3.20 $7.25 $6.00 $7.30 SBM, $/ton$395 $285 $350 $400 $474 DDGS, $/ton$150$120$200$240$220 CWG, $/cwt$27 $33 $50 $46 $42 Dical, $/cwt$23 $26 $28 $33 $27 L-lysine, $/cwt$70 $110 $120 $113 $83 ~cost/finishing pig$64$57$90$87$97

28 Example Diets with Alternatives Phase = 125 – 170 lb of body weight Corn = $7.30/bu ($260/ton) SBM, 46.5% = $474/ton DDGS (7.5% Fat) = $220/ton Wheat midds = $212/ton Meat and Bone = $550/ton Moncal P, 21% = $540/ton L-Lysine = $0.83/lb

29 HigherMeat &WheatDDGS & IngredientCorn/soyAAboneDDGSmidds Corn SBM, 46.5% Meat & bone meal100 DDGS, 7.5% fat600 Wheat middlings400 Lysine HCl DL-Methionine L-Threonine Monocal P, 21% P Limestone VTM & Salt12 SID Lys:ME, g/Mcal SID Lys SID Met & cys:lys SID Thr:lys SID Trp:lys ME, kcal/lb1,5151,5161,5131,4811,4821,446 CP, % Available P, %

30 HigherMeat &WheatDDGS & IngredientCorn/soyAAboneDDGSmidds Corn SBM, 46.5% Meat & bone meal100 DDGS, 7.5% fat600 Wheat middlings400 Lysine HCl DL-Methionine L-Threonine Monocal P, 21% P Limestone VTM & Salt12 Diet w/ processing$322.00$318.00$326.28$289.88$297.52$ Budget, lb/pig Feed cost, $/pig$19.32$19.08$19.61$17.80$18.25$16.91 F/G

31 Effect of DDGS (0, 15, 30%) and Midds (0, 9.5, 19%) on pig performance (90 to 270 lb) d 0 to 43:LowHigh d 43 to 67:Low MedHigh d 67 to 90:Low MedLowMedHigh Asmus et al., 2011 Duration P > 0.38 SEM 2.54

32 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 32

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35 Newly Developed F/G Factsheets Swine Feed Efficiency, IPIC 25a: Not Always Linked to Net IncomeNot Always Linked to Net Income Swine Feed Efficiency, IPIC 25b: Genetic ImpactGenetic Impact Swine Feed Efficiency, IPIC 25c: Particle Size Testing MethodologyParticle Size Testing Methodology Swine Feed Efficiency, IPIC 25d: Influence of Particle SizeInfluence of Particle Size Swine Feed Efficiency, IPIC 25e: Influence of PelletingInfluence of Pelleting Swine Feed Efficiency, IPIC 25f: Influence of TemperatureInfluence of Temperature Swine Feed Efficiency, IPIC 25g: Decision TreeDecision Tree Swine Feed Efficiency, IPIC25h: Influence of Market WeightInfluence of Market Weight Swine Feed Efficiency, IPIC 25i: Effect of Dietary EnergyEffect of Dietary Energy Swine Feed Efficiency, IPIC 25j: Influence of RactopamineInfluence of Ractopamine Swine Feed Efficiency, IPIC 25k: Feeder Design and ManagementFeeder Design and Management Swine Feed Efficiency, IPIC 25l: Influence of Amino AcidsInfluence of Amino Acids Swine Feed Efficiency, IPIC 25m: Sow Feed on Whole Farm EfficiencySow Feed on Whole Farm Efficiency 35

36 Thank you! 36


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