Economic Modeling of Returns to Swine Feeding and Management

Modern Swine Industry
• Modern Swine Production is Extremely
Complex
– Feeding strategies involve
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Feed ration formulation – nutrient levels
Choice of number of rations to feed
Choice of time periods for feeding rations
Timing and feed concentration of growth
promotants (e.g., antibiotics or ractopamine)
Modern Swine Industry (cont’d.)
– Marketing strategies involve
• Choice of when to “turn the barn” with AllIn/All-Out system
• Optimal target market weights and sort
weights
• Contracts
– Nutrient management / Air Quality
• Manure value positive or negative
• Feed additives (e.g., phytase) affect nutrient
absorption
Modern Swine Industry
(cont’d.)
– Genetic Sources
• Match health in your system
• Production flow - All-In/All-Out system?
• Optimal target market weights and sort
weights for these genetics
– Marketing Agreements
– Packer grids
– Managing Inputs
• Feed Ingredients, etc.
– ALL LINKED!
Economics of Swine Nutrition
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Cost per ton of feed
Cost per unit of lysine
Cost per unit of digestible lysine
Cost per unit of digestible energy
Total feed cost per pig marketed
Cost per lb of gain
Cost per lb carcass sold
• For Every 0.01 improvement in F:G will
decrease total feed costs by $0.28-0.30/pig
Boyd, 2008
Phase Feeding
Nutrient Requirements over Time
Pigs' Requirement
Typical Phase Feeding
Split Sex and Phase Feeding
• Split Sex feeding will save $0.50-0.75/cwt
• Phase Feeding – How much can it save?
– Is more better?
Projected theoretical savings per pig due
to increasing the number of diet phases.
Number of
Grow-Finish diet
phases
Diet cost per
pig
marketeda
Savings
compared to a
Two phase
program
2
$42.55
----
3
$41.41
$1.15 ($1.60)
$1.15
4
$41.01
$1.55 ($2.48)
$0.40
5
$40.67
$1.89 ($3.02)
$0.34
6
$40.43
$2.12 ($3.39)
$0.24
9
$40.10
$2.46 ($3.93)
$0.11
12
$39.90
$2.65 ($4.24)
$0.06
aCorn=$2.24/bu,
Incremental
savings per
additional diet
phase
44% SBM = $240/ton; Assumed equal pig performance and feed intake
b D.D. Koehler, 1997
(updated to $3.90/bu corn and $315/ton SBM, $900/ton DiCal – BTR 1/2009)
Corn Particle Size
Angle of Repose
Hammer, Hammer, Roller mills
Every 100 Microns reduction
improves feed Eff. By 1.2%
(7.5-10 lbs of feed/pig)
Feed Bridging
Management Options
Reduce Selling Weight
• Hit the Bottom of the grid instead of the top
– IPC – 170-214 lb carcass (230-285 lb Live)
– Pigs will be leaner and increase lean premiums
– Need to be careful not to have too many lights
• Discounts 160-170 lb ($2/CWT) then $8 and $12/CWT
• What does it cost to leave the Facility Open or
less than capacity?
• Saves A lot of FEED!
Reduce Selling Weight
Weight
55-210
210-220
220-230
230-240
240-250
250-260
260-270
270-280
280-290
Feed (total),
LB
532
34 (566)
35 (601)
36 (637)
37 (674)
37 (711)
38 (749)
39 (788)
40 (828)
Feed Savings
from 270 lb
-110 lb (15%)
-74 lb (10%)
-37 lb (5%)
+39 lb
+79 lb
Evaluation of optimal market
weights for different pigs
• The actual feed intake, BW , backfat and
loin depth data were fitted to growth
functions for the high lean gain pigs
• The average lean gain pigs were modeled to
have greater rate of fat accretion and ADFI
than the high lean gain pigs.
• The low lean gain pigs had the greatest fat
accretion – and most rapid decrease in
percent lean.
Evaluation of optimal market
weights for pigs
• The growth, DFI , backfat and loin depth
data was applied to three pork processor’s
grids – Tyson’s, IPC and Farmland foods.
• Corn and soybean meal prices were
originally set to 10 yr. average values – corn
$2.50 /bushel, 48 % Soybean meal $190/ton
and then increased by 20 % to 2.4 times the
average values.
Pigs were split sex – phase fed.
Predicted Feed Conversion for Three Genetic
Populations of Barrows
Predicted Feed Conversion for Three Genetic
Populations of Barrows
Relationship of backfat to live weight in three
genetic populations of gilts
Optimal Slaughter Weight with
Increasing Feed Costs
Corn and soybean meal prices were originally set to 10 yr. average values
Corn $2.50 /bushel, 48% SBM $190/ton and then increased by 20 % to 2.4 times the average values.
Tyson –Gilts
Farmland -Gilts
Farmland -Barrows
Impact of Pen unloading
Pigs per pen
24
24
24
Pigs removed
0
6
12
Sq. Ft/pig
7.25
9.67
14.5
Start Wt., lb
249
250
250
Residual Wt., lb
249
244
233
Avg. Final Wt., lb
278
280
270
Removed Avg. wt
0
268
267
Marginal ADG
1.45
1.83
1.84
Marginal F:G
4.24
3.76
3.63
Feed cost/30 lb of gain
$12.72
$11.28
$10.89
Marginal $/pen
$2,707
$2,748
$2,739
Boyd, 2008
Impact of Pen unloading
Pigs per pen
27
27
27
27
6 Pigs removed
0
20 wks
22 wks
20 and 22 wk
Sq. Ft/pig
6.85
Total Wt Sold
7598
7477
7642
7374
Total Feed Used
4366
3524 (19%)
4077 (6.6%) 3131 (28.3%)
COV LW at 24 wks
8.5
7.2
7.5
6.4
Sort Loss, $/pig
3.49
2.52
2.69
1.13
Campbell, 2006
Antibiotic and Herd Health
Programs
• Using the right level and antibiotic
– Is it working for you
– Can you use something else or none
– Feed Savings relative to Increased
Cost?
• Updating Herd Health
– Reduce costs long term
Sow Productivity
Weaned PSY
$/sow
20
22.5
25
Gestation $197
$9.85
$8.76
$7.88
Lactation
$84
$4.20
$3.73
$3.36
Total
$281
$14.05
$12.49
$11.24
Lb/sow
Lb/pig
97
87
Total Feed 2,175
109
Feeding Cull Sows
Feeding Cull Sows
14 d
28 d
42 d
56 d
70 d
ADFI, lb
MWC1
8.07
9.52
10.43
10.80
10.63
MWC2
11.56
12.94
13.77
14.07
13.82
MWC3
11.26
12.19
12.59
12.44
11.76
MWC4
10.19
11.68
12.63
13.04
12.90
MWC1
3.13
2.45
1.93
1.57
1.37
MWC2
4.48
3.38
2.44
1.67
1.05
MWC3
2.98
2.29
1.76
1.39
1.19
MWC4
3.09
2.22
1.51
0.96
0.57
MWC1
0.37
0.27
0.19
0.14
0.12
MWC2
0.41
0.28
0.17
0.09
0.04
MWC3
0.26
0.18
0.13
0.10
0.10
MWC4
0.28
0.17
0.10
0.05
0.03
ADG, lb
G:F
Feeding Cull Sows
Feed costs = $0.09/lb and Fixed costs = $0.25/day
Sow prices = $0.33, $0.36, $0.38, and $0.40, for respective MWC
Cull Sows and Paylean (21 d)
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Increased ADG (3.15 vs 2.65)
Increased G:F (0.29 vs 0.25)
No Diff in ADFI
Decreased Fat Accretion (0.31 vs
0.41 in.)
• 10.5 lb more sow weight
• Is it cost Effective?
Knauer et al., 2008
Economics of Swine
Nutrition and Production
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Cost per ton of feed
Cost per unit of lysine
Cost per unit of digestible lysine
Total feed cost per pig marketed
Cost per lb of gain
ROI per pig space per day
• Lots of variables that can affect
profitability!
Questions?
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