Feed Price Update and Daily Feed Efficiency Drivers

Joel DeRouchey, Mike Tokach, Bob Goodband and Steve Dritz

Kansas State University

www.KSUswine.org

Presentation Outline

• Feed efficiency drivers to reduce feed cost• Feed processing advancements• Ingredient and diet pricing• Additional resources

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

Feed Efficiency

High feed disappearance Low ADG Other 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 ADG Other factorsHigh feed disappearance

Feed Efficiency

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

Meta-analysis results (15 experiments)Items Dry Wet-dry SEM P - valueInitial wt, lb 74.3 74.3 5.9 0.27Final wt, lb 228.6 235.9 13.8 <0.01

ADG, lb 1.92 2.01 0.046 <0.01ADFI, lb 5.09 5.36 0.223 <0.01F/G 2.59 2.59 0.10 0.93

Yield, % 75.8 75.6 0.26 0.57HCW, lb 201.7 208.1 2.1 <0.01BF, mm 16.7 18.1 0.23 <0.01Loin, mm 62.2 61.6 0.68 0.14Lean, % 51.4 50.8 0.85 <0.01

Water disappearance, L/pig/d 6.4 5.0 0.34 0.02

Nitikanchana et al., 2012

Same F/GSame F/G

Reduction in Lean Poor F/GPoor F/G

Reduction in lean

Dry 90.81 90.81 88.86 88.86

Wet-Dry 92.42 91.55 88.77 87.81

$/pig + 1.61 +0.74 - 0.09 -0.95

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

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.

0 20 40 60 80100

120140

160180

200220

240260

280300

30

40

50

60

70

80

90

100Upper Critical LimitLower Critical Limit

Body weight, lb

Effec

tive

tem

pera

ture

, oF

Thermoneutral Zone

Cold Stress

Heat Stress

Effective Temperature

Effect of environmental temperature on the performance of growing pigs (50 to 125 pounds)1

Item

Temperature, oF

50 72.5 95

ADG, lb 1.70 1.76 1.41

ADFI, lb 4.86 4.21 3.52

Feed/gain 2.91 2.41 2.52

1Summary of 3 experiments; Stahly and Cromwell, 1979, 1981.

Disease or Other Stress– Disease problems that lower ADFI will greatly

lower ADG. Mortality will increase F/G by about 0.015 for each 1% increase in mortality when spread across the finishing period.

– Stressors are additive• Reducing stress will improve F/G

Update on Feed Processing Research

to Reduce Costs

600 micron corn 300 micron corn 300 micron diet1.8

1.9

2.0

2.1

2.2

2.3

2.4

2.022.06

1.99

2.112.17

Meal Pellet

ADG

, lb

300 vs 600 microns P < 0.15Grind x form P < 0.001Grind P = 0.89; Form P < 0.001SEM = 0.018

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

600 micron corn 300 micron corn 300 micron diet2.5

2.6

2.7

2.8

2.9

3.0

2.82

2.712.74

2.60 2.60

Meal Pellet

F/G

300 vs 600 microns P < 0.001Grind x form P = 0.37Grind P = 0.52; Form P < 0.001SEM = 0.03

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

600 micron corn 300 micron corn 300 micron diet$50

$55

$60

$65

$70

$53.27

$57.94

$53.96

$62.20 $61.35

Meal Pellet

Inco

me

over

feed

cos

t, $/

pig

300 vs 600 microns P < 0.01Grind x form P = 0.15Grind P = 0.03; Form P < 0.001SEM = 1.143

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

800 600 4003.0

3.1

3.2

3.3

3.4

3.5

Cabrera, 1994aCabrera, 1994bWondra, 1995

Effects of particle size on feed efficiencyF/

G

Particle size, microns

300

400

500

600

700

800 2.5

2.6

2.7

2.8

2.9

3.0

Paulk, 2011DeJong, 2012

1.2% per 100 microns 1.0% per 100 microns

Particle size, microns

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

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.

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Pelleting on growth performance of grow-finish pigs 2005 to 2011

ReferenceMeal Pellet

ADG F/G ADG F/GGroesbeck et al. (2005) 0.83 1.25 0.90 1.22Groesbeck et al. (2005) 0.62 1.43 0.65 1.37Groesbeck et al.(2006) 0.80 1.25 0.78 1.17Potter et al. (2009) 1.95 2.12 2.05 2.07Potter et al. (2009) 1.92 2.83 2.04 2.68Myers et al. (2010) 1.81 2.76 1.94 2.82Potter et al. (2010) 1.92 2.86 2.03 2.70Frobose et al. (2011) 1.46 1.72 1.43 1.63Frobose et al. (2011) 1.29 1.51 1.38 1.40Myers et al. (2011) 1.96 2.73 1.97 2.67Paulk et al. (2011) 2.50 2.75 2.63 2.55Paulk et al. (2011) 2.31 2.50 2.44 2.40

Average 1.61 2.14 1.69 2.06

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

Meal Pellets Pellets with 30% fines

1.40

1.50

1.60

1.70

1.59

1.51

1.57

a

b

P < 0.05

Effects of pellet quality on F/Gin 30 to 70 lb pigs

F/G

a

Nemecheck et al. 2012

20

Pellet quality

Pellets with fines

Good quality pellets

Nemecheck et al. 2012

0.0% 15.0% 30.0% 45.0%1.7

1.8

1.9

2.0

2.1

1.93

1.87 1.851.80

ADG,

lb

Linear P > 0.01SEM = 0.02

Effect of medium-oil DDGS on pig performance(d 0 to 67; BW 152 to 280 lb)

Medium-oil DDGS

Graham et al., 2012

7.4% fat, 28.1% CP, 10.8% ADF, 25.6% NDF

0.0% 15.0% 30.0% 45.0%2.9

3.0

3.1

3.2

3.3

3.4

3.133.19 3.20

3.26

F/G

Linear P > 0.02SEM = 0.04

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

0.0% 15.0% 30.0% 45.0%70

71

72

73

74

75

74.0

73.2

72.471.8

Yiel

d, %

Linear P > 0.02SEM = 0.04

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

0.0% 15.0% 30.0% 45.0%65

68

71

74

77

80

70.271.1

73.7

76.3

Jow

l fat

iodi

ne v

alue

, mg/

g

Linear P > 0.02SEM = 0.04

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

Corn DDGS quality control• Variability in DDGS quality

– Main issue is fat level Fat, % NE, %• Low = < 5% fat 4.0 80.0%• Medium = 6 to 9% fat 7.5 87.5%• High = > 9% fat 11.0

95.0%– 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%

Predicted Digestible and Net Energy of DDGS

5 6 7 8 9 10 11 12 131500

2000

2500

3000

3500

4000

f(x) = 62.3470000000001 x + 3058.132

f(x) = 115.011 x + 1501.013

Net EnergyDigestible Energy

Oil, %

Ener

gy, K

cal/

kg

Historical Ingredient PricesJune 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

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

Higher Meat & Wheat DDGS & Ingredient Corn/soy AA bone DDGS midds midds Corn 1537 1573 1569 1121 1303 830 SBM, 46.5% 417 377 314 235 247 124 Meat & bone meal 100 DDGS, 7.5% fat 600 600 Wheat middlings 400 400 Lysine HCl 3 5.4 3.9 6.4 6.7 7.9 DL-Methionine 0.25 0.3 L-Threonine 1.2 0.6 1.5 Monocal P, 21% P 16 16 2 10 Limestone 15 15.5 23.5 20 26 VTM & Salt 12 12 12 12 12 12

SID Lys:ME, g/Mcal 2.52 2.52 2.5 2.52 2.52 2.52 SID Lys 0.84 0.84 0.84 0.83 0.83 0.81 SID Met & cys:lys 60 58 58 72 58 73 SID Thr:lys 62 62 63 66 62 63 SID Trp:lys 19.1 17.0 17.0 17.0 17.0 17.0 ME, kcal/lb 1,515 1,516 1,513 1,481 1,482 1,446 CP, % 16.4 15.3 16.8 18.7 14.8 18.1 Available P, % 0.23 0.23 0.28 0.23 0.23 0.27

Higher Meat & Wheat DDGS & Ingredient Corn/soy AA bone DDGS midds midds Corn 1537 1573 1569 1121 1303 830 SBM, 46.5% 417 377 314 235 247 124 Meat & bone meal 100 DDGS, 7.5% fat 600 600 Wheat middlings 400 400 Lysine HCl 3 5.4 3.9 6.4 6.7 7.9 DL-Methionine 0.25 0.3 L-Threonine 1.2 0.6 1.5 Monocal P, 21% P 16 16 2 10 Limestone 15 15.5 23.5 20 26 VTM & Salt 12 12 12 12 12 12

Diet w/ processing $322.00 $318.00 $326.28 $289.88 $297.52 $268.79

Budget, lb/pig 120.0 120.0 120.2 122.8 122.7 125.8

Feed cost, $/pig $19.32 $19.08 $19.61 $17.80 $18.25 $16.91 F/G 2.67 2.67 2.67 2.73 2.73 2.80

Effect of DDGS (0, 15, 30%) and Midds (0, 9.5, 19%) on pig performance (90 to 270 lb)

Series1189

191

193

195

197

194.3

195.8

193.7

195.5

193.5

191.4

Carc

ass w

eigh

t, lb

d 0 to 43: Low High High High High Highd 43 to 67: Low Low Med High High Highd 67 to 90: Low Low Med Low Med High

Asmus et al., 2011

Duration P > 0.38SEM 2.54

K-State Web Resourceswww.ksuswine.org

• DDGS Calculator• Synthetic Amino Acid Calculator• Fat Analysis Calculator• Feed Budget Calculator• Feeder Adjustment Cards• Particle Size Information• Marketing Calculators• Gestation Feeding Tools

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www.KSUswine.org

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www.swinefeedefficiency.com

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

www.swinefeedefficiency.com

Thank you!

WWW.KSUswine.org

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