Nutrition Economics

Wayne Cast
Value-Added Science & Technologies
 Feed as % of Total Cost

50
55
60
65
70
75
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Source: Agristats 2012

Feb-12
Mar-12
 Sow
92
Nursery
60

Finishing
616
 Withrecent volatility in
commodity markets,
risk management has
become an important
task for profitable
swine producers
 Monocal
• $335-1,060 per ton
 Fat
• $240-1,200 per ton
 Key areas regardless of prices

 Importance amplified in periods of high

prices
Ingredient Prices in dollars per ton
Corn (800 microns, 14.5% Mois.) 215
Soybean Meal 400
DDGS 200
Choice White Grease 1000
Limestone 40
Monocalcium Phosphate, 21% 650
Salt 60
Phytase 2400
Lysine HCl 2200
Threonine 2300
Methionine 3950
VTM 2875
Ingredient Inclusion
Corn (800 microns, 14.5% Mois.) 1392.4
Soybean Meal 474
DDGS 0
Choice White Grease 87
Limestone 17.5
Monocalcium Phosphate, 21% 17.5
Salt 6.7
Phytase 0
Lysine HCl 2.9
Threonine 0
Methionine 0
VTM 2
Cost $300.30
 600-1000 Microns

 100micron reduction = 1.25-1.5%

improvement in utilization

 800 600 microns

• 2.80 2.75 = 11 lbs of feed per pig (50 – 270 lbs)
 60
58
56
Angle of Repose

6% Fat HM
54
3% Fat HM
52 0% Fat HM
50 6% Fat RM
48 3% Fat RM
46 0% Fat RM

44
42
300 500 700 900 1100 1300
Particle Size, microns

Groesbeck, et al., 2002

 1200 head barn = 980 ton of feed
 $270/ton
 200 micron
 1.25% x 2 x 70% of diet is 1.75%
 $4630/barn we can spend to get feed to
flow
 Jitter balls
• Hog Slat
Ingredient 800 Microns 600 Microns
Corn 1392.4 1413.4
Soybean Meal 474 472
DDGS 0 0
Choice White Grease 87 68
Limestone 17.5 17.5
Monocal. Phosphate, 21% 17.5 17.5
Salt 6.7 6.7
Phytase 0 0
Lysine HCl 2.9 2.9
Threonine 0 0
Methionine 0 0
VTM 2 2
Cost $300.30 $292.66
 Plant phosphorus
 First know pig’s requirement
 5 grams
 Good products
 Confusing nomenclature
 Comparison tool
Optiphos Phyzyme Natuphos Ronozyme Avail P
FTU FTU FTU FYT Release
120 375 375 1110 0.075
160 500 500 1480 0.090
200 625 625 1850 0.100
230 750 750 2220 0.110
250 900 900 2550 0.120
300 1000 1000 2900 0.125
350 1125 1125 3300 0.130
450 4292 0.140
750 0.170
1000 0.195
Ingredient 600, No Phy 600, Phy
Corn 1413.4 1438.15
Soybean Meal 472 470
DDGS 0 0
Choice White Grease 68 58
Limestone 17.5 16
Monocal. Phosphate, 21% 17.5 6
Salt 6.7 6.7
Phytase 0 0.25
Lysine HCl 2.9 2.9
Threonine 0 0
Methionine 0 0
VTM 2 2
Cost $292.66 $286.45
 Lysine
 Methionine
 Threonine
 Ratio to Lysine, TID
• Threonine
• Methionine + Cystine
• Tryptophan
• Valine
• Isoleucine
 Hybrid KSU/PIC/Ajinomoto
Ingredient 600, Phy 600, Phy, AA
Corn 1438.15 1549
Soybean Meal 470 357
DDGS 0 0
Choice White Grease 58 53
Limestone 16 17
Monocal. Phosphate, 21% 6 6.5
Salt 6.7 6.7
Phytase 0.25 0.25
Lysine HCl 2.9 6.5
Threonine 0 1.5
Methionine 0 0.55
VTM 2 2
Cost $286.45 $280.22
 DDGS is an economical source of nutrients
• Energy
• Amino acids
• Phosphorus

 DDGS is not 1 ingredient

• Plant to plant variation
• Within plant variation

 Mostproducers do not effectively capture the

value of DDGS
 Pricessimilar from plant to plant
 Values quite different
 Some better buys than others
 Process can change – Spinning Oil
 Need to monitor
 ILLUMINATE®
 Different Book Values, as is basis

ILLUMINATE ILLUMINATE ILLUMINATE

Item NRC U of M KSU
Avg Low High

DM, % 93 89 Not Listed 89.2 86.7 93.2

Crude Protein, % 27.7 23.1 27.2 26.8 24.9 32.1

Crude Fat, % 8.4 8.7 10.7 9.4 5.5 11.9

Swine ME Kcal/kg 2820 3500 3419 3233 2657 3601

Total Lys, % 0.62 0.85 0.78 0.87 0.62 1.02

Total Met, % 0.50 0.45 0.55 0.53 0.43 0.75
Total Phos, % 0.77 0.82 0.60 0.77 0.54 0.93
AvPhos, % 0.59 Not listed 0.46 0.58 0.41 0.70
 Ongoing lab analysis of DDGS samples
 Weekly relative value analysis
 Identification of best value, best cost DDGS source for
each client
 Weekly updates of nutrient loadings for selected sources
 Formulation work or provide loadings to outside
nutritionist
 Merchandising assistance
Ingredient 600, Phy, AA 600,Phy,AA,DDGA 600,Phy,AA,DDGB
Corn 1549 1137.74 1169.98
Soybean Meal 357 264 259
DDGS 0 500 500
Choice White Grease 53 60 34
Limestone 17 22 21.5
Monocal. Phosphate, 21% 6.5 0 0
Salt 6.7 6 6
Phytase 0.25 0.11 0.12
Lysine HCl 6.5 7.7 7.1
Threonine 1.5 0.45 0.3
Methionine 0.55 0 0
VTM 2 2 2
Cost $280.22 $267.73 $256.37
 Increase energy
 Maintain lysine:calorie ratio
 Improves ADG
 Improves F/G
 Not a good buy today
• High priced hogs
• Expensive fat 4.65x
 Exp. ADG % 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Start Wt. 50 Exp. F/G % 1.80% 1.80% 1.80% 1.80% 1.80% 1.80%
ADG (Prog. 1) 1.80 GMD ($/ton) $ 12.00
F/G (Prog. 1) 2.85 Live Hogs ($/cwt) $ 65.00 $ 86.67
ME per 1% fat: 0.022 Fixed Cost ($/pig/day) $ 0.11
Fat ($/ton) $ 388.0 Prog. 1
Lbs Pork Produced 221.6 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 SUM
Ending Live Weight 271.6 Lbs needed/pig 40 115 136 191 60 90 633
Pig Value $ 176.51 F/G 1.97 2.34 2.70 3.24 3.40 3.65
Total Feed Cost $ 80.15 Lbs of Gain 20.5 49.4 50.4 59.0 17.6 24.7 221.6
F/G 2.86 Diet ME (kcal/lb) 3.32 3.32 3.32 3.32 3.33 3.33 3.00
Net per Pig $ 96.36 Diet cost ($/ton) $ 256.10 $ 250.23 $ 244.10 $ 237.54 $ 236.39 $ 230.38
Feed Costs $ 5.40 $ 15.12 $ 17.44 $ 23.83 $ 7.45 $ 10.91 $ 80.15

Prog. 2
Lbs Pork Produced 222.9 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase6 SUM
Ending Live Weight 272.9 Lbs needed/pig 39.7 113.6 134.1 188.0 58.9 88.4 623
ADG (Prog. 2) 1.81 F/G 1.92 2.28 2.64 3.17 3.31 3.55
Pig Value $ 177.41 Lbs of Gain 20.6 49.7 50.7 59.3 17.8 24.8 222.94
Total Feed Cost $ 82.32 Diet ME (kcal/lb) 3.37 3.37 3.37 3.37 3.40 3.40 3.06
F/G 2.79 Diet cost ($/ton) $ 267.44 $ 260.86 $ 254.85 $ 247.83 $ 249.11 $ 243.17
Net per Pig $ 95.10 Feed Costs $ 5.54 $ 15.49 $ 17.89 $ 24.42 $ 7.69 $ 11.27 $ 82.32
Prog. 1 vs Prog. 2 $ (1.26) Return ($/hd) by ration $ (0.06) $ (0.18) $ (0.26) $ (0.36) $ (0.16) $ (0.25) $ 2.17
 Grind
 Phytase
 Crystalline amino acids
 DDGS
 Energy levels
Ingredient Base Diet Enhanced Diet
Corn 1392.4 1169.98
Soybean Meal 474 259
DDGS 0 500
Choice White Grease 87 34
Limestone 17.5 21.5
Monocal. Phosphate, 21% 17.5 0
Salt 6.7 6
Phytase 0 0.12
Lysine HCl 2.9 7.1
Threonine 0 0.3
Methionine 0 0
VTM 2 2
Cost $300.30 $256.37
 ADG F/G

ISU 3.0% 6.5%

KSU 5.0% 7.0%
Average 4.0% 6.75%
Commercial 1.5% 3.0%
 2.6

2.56
2.55

2.51
2.5
2.5

F/G 2.45 2.44

2.4
2.4

2.35

2.3
Meal 90% Pellets 70% Pellets 50% Pellets 30% Pellets

Pollmann, 2011
 Meal
100
Pellets

98
Survival Rate

96

94

92

90

PIC 380 PIC 280 PIC 337

 Mortality
• Genotype
• Feed interruptions
• Health and bio-security

 Bottom line
• Does the economic improvement due to F/G and
ADG from pelleting more than offset the cost of
pelleting and the increased mortality?
 Raised mostly for human food

 Usually only 10% of U.S. crop fed

to livestock

 This
year could be different with
small corn carryover

35
 Increases with higher soybean meal price

 Slightly less energy per lb BUT:

• More available phosphorus
• Higher protein and amino acids
• 4 more lbs in a bushel

36
 Can replace all the corn in swine diets
 Bad reputation undeserved:
• Often wheat fed has been rejected
• Light test weight – even lower energy
• Sprouted
• Scab – vomitoxin, zearalenone
• Garlic 160 bublets
 If
we only had rejected corn to feed we
wouldn’t like corn either

37
 Bad news
• Wheat tends to flour, especially when ground with a
hammer mill (rpm)
 Feeders can bridge
 Flour can absorb moisture and plug feeder
 Overcome by using a mixture

38
 Good News
• Reducing particle size is not as important as with
corn or milo
 Only half the response
 Roller mills can do a
very nice job
 Improves pellet quality

39
 Wheat Corn Wheat:Corn
Dry matter, % 88.00 85.50 103%
Energy, kcal/lb
Metabolizable 1,456 1,520 96%
NE NRC 2,225 2,395 93%
Crude protein, % 13.50 8.30 163%
Available P, % 0.185 0.039 474%
Crude fat, % 2.00 3.40 59%
Crude fiber, % 2.4 2.2 109%
Dig. Lysine, % 0.28 0.20 140%
Dig. Met & Cys, % 0.44 0.32 138%
Dig. Threonine, % 0.31 0.24 129%
Dig. Tryptophan, % 0.135 0.050 270%

40
Another dusty and
broken feeder
crank!!!
 Pigs per feeder space - “New” feeder designs
• Dry feeders – 10 pigs
• Wet/Dry feeders – 10 to 15 pigs (depends on “quality” of space)

 Feeder space Quality

• Correct dimensions for intended BW range of growth
 Depth and Width are most important
• Some degree of protection – at least nose/snout divider bars
 Reduces wastage associated with pig-to-pig interactions
 Reduces aggression
 Limits ability of pigs to waste feed by rooting

classification/filename/author/date (Trebuchet MS 11 pt)

 Feeder opening/adjustment
• Dry Feeder
 50 to 60% trough coverage for pigs < 150 lb BW
 30 to 50% trough coverage for pigs > 150 lb BW
• Wet/Dry Feeder
 65 to 85% trough coverage for pigs < 200 lb BW
 50 to 65% trough coverage for pigs > 200 lb BW

classification/filename/author/date (Trebuchet MS 11 pt)

 Wet-Dry Feeder Conventional Dry Feeder

35% 9%
1.27 cm opening (setting 6) 1.5 to 2.0 cm opening (setting 6)

d 19
57% 21%
1.91 cm opening (setting 10) 2.0 to 2.7 cm opening (setting 8)

65% 79%
2.54 cm opening (setting 14) 2.7 to 3.4 cm opening (setting 10)

classification/filename/author/date (Trebuchet MS 11 pt), New Horizon Farms, Kansas State University

 P < 0.01 Linear
2.10 2.08
2.05
2.05
ADG, lb

2.00

1.95 1.94

1.90

1.85
1 3 5
Feeder Settings
 P < 0.67 Linear
2.45

2.40
2.37
FG

2.35 2.34

2.25
1 3 5
Feeder Settings
lbs of
feed

8
Bump Feeding
7

6
Reduce
Feed to condition
embryonic
5
mortality
Drop
4 intake

Farrow
2 4 6 8 10 12 14 16 18
Wean

Mate

Weeks post-mating
 Rapidgrowth of fetuses last 3 weeks of
gestation
 Historically have done it “blindly”
 Asfeed prices increase is bump feeding still
cost effective?
• Each 1 lb bump for 30 days costs > $3/litter
 Gilts Sows
Normal 3# Bump Normal 3# Bump
Litters 151 148 382 399
Born Alive 9.35 9.66 10.14 10.12
Birth Wt. 2.99 3.08 3.12 3.10
Weaned 7.93 8.5 8.38 8.34
Weaning Wt., 11.13 11.37 11.51 11.83
PWM, % 15.0 12.1 16.0 17.4

Cromwell et.al., 1989

49
 Gilts Sows
Normal 2# Bump Normal 2# Bump
Litters 22 21 33 32
Born Alive 13.8 12.9 11.2 12.3
Birth Wt. 3.13 3.32 3.39 3.15
Weaned 11.5 11.5 10.6 10.5
Weaning Wt., 13.40 13.35 13.45 13.28
PWM, % 7.35 7.05 5.65 8.28

Shelton, et.al., 2009

50
 Gilts Sows
Normal 2# Bump 4# Bump Normal 2# Bump 4# Bump
Litters 24 24 24 50 51 51
Born 11.24a 11.05a 12.13a 11.67a 11.29a 12.03a
Alive
Birth Wt. 2.89a 3.06ab 3.17b 3.50a 3.34a 3.35a
Litter 35,46a 37.76ab 41.11b 41.99a 41.64a 42,13a
Birth Wt.

P<0.05
Soto, et.al., 2009

51
18 145
16 140
15.3 140
14
13.6 135
12
10 10.5
10.9 130
Control
8 8.2 125
6 6.3
CEL-CAN
120 121
4
3.63
3.23
2 115
0 110
Litter Size Birth wt. lb* Wean wt. lb* PWM% Litter Wt.
lb*

* P<0.05
52
 3.6
3.5
3.48 3.50
3.4
Pig Weight Alive, lb

3.3
3.2 3.26

3.1 3.15 3.15 Control

3 CEL-CAN
3.01
2.9
2.8
2.7
Mean 9 - 12 13 - 18
Litter Size
 Increased birth weight

 Increased weaning weight

 Reduced prewean mortality

 Toxin insurance is free

54
 Steve Dritz
 Mike Tokach
 Matt Steidinger
 Chad Hastad
 Chad Hagen
 Noel Williams
 Bob Goodband
Questions