CattleNetwork.com, KS 11-06-06 FOCUS: Feed Efficiency In Hogs Posting Consistent Gains KANSAS CITY (Dow Jones)--Hog producers are getting more pounds of pork for every bushel of corn they feed swine, and with surging grain costs, these efficiencies will be put to the test. Animal scientists and agricultural economists attribute the production advances to farm technology, improved feeding systems and quality, along with improved animal genetics. Ron Plain, agricultural economist at the University of Missouri, said feed efficiency has improved on average about 1% per year over the past 15 years. "Historically, we have talked about 10 bushels of corn per head" required to produce hogs to slaughter weight, Plain said. This figure includes the feed needed by the sows during gestation. "That (number of bushels) still holds true, but the hogs are bigger, so the net effect is that we're getting more meat produced per pound of corn that is fed to the animals," he said. But with corn prices surging on ethanol demand, hog producers will need to look even closer at costs. At the Chicago Board of Trade, all corn futures months are trading well above $3 per bushel. Most-active December corn futures hit a new contract high Thursday at $3.53 1/2 and closed Friday at 3.42 1/4. As of Friday's close, December corn prices have advanced about $1.00, or 41%, in just the past seven weeks. According to Glenn Grimes, agricultural economist at the University of Missouri, for every 50-cent per bushel increase in corn prices, the break-even cost for hog producers rises by about $2.50 per hundredweight on a live basis. Feed Efficiency Varies On Seasons Seasonal factors can greatly influence feed efficiency, Plain said. Hogs eat more and put on weight faster during autumn when the weather is cool and the corn crop is fresh. On the flip side, feed efficiency is the poorest in the hot summer months when the hogs eat less and don't gain weight as fast, Plain said. "It is more difficult to get rid of heat from the buildings in the summer than it is to add it in the winter," he said. David Stender, swine extension specialist with Iowa State University, said that among the things that producers have done or can do to improve feed efficiency in their hog operations is to add fat to the ration. "Adding fat will improve feed efficiency and feed intake," he said in an e-mailed reply to questions. The rule of thumb is that for every 1% of added fat in the ration, the feed efficiency will increase by about 2%, he said. However, there is a limit to the amount of fat that can be added to allow the feed to still flow properly in the bulk feeders. Stender said the upper limit is 5% of added fat in the ration. Ethanol Byproduct Comes Into The Feed Mix Distillers dried grain, a high protein byproduct of ethanol production, is starting to be used in feed rations to help offset rising corn prices. However, hogs cannot handle too much DDG in their rations, said Joel DeRouchey, Kansas State University Research and Extension livestock production specialist who conducted a study on DDGs and hogs. DeRouchey said the results "suggest that DDGs from the plants evaluated in this study can be included in the diet of commercial and finishing pigs at 10% to 15% without decreasing performance." In January, Iowa State University plans to release an update on hog feeder efficiency, its first in five years, said John Lawrence, agricultural economist at ISU. "The January figures should represent more of the new technology" that is now being used on a broader scale in the industry, Lawrence said. Source: Curt Thacker, Dow Jones Newswires; 913-322-5178; curt.thacker@dowjones.com