How to feed broiler for maximum profitability. Budi Tangendjaja PhD USGC SEA Indonesia
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1 How to feed broiler for maximum profitability Budi Tangendjaja PhD USGC SEA Indonesia
2 Outline Introduction Cost breakdown Nutrition Manufacturing Feeding system Bench marking New Technology Conclusion 2
3 MANY (MEAT) BUSINESSES FORGET BASIC ECONOMICS DEPENDS ON SUPPLY AND DEMAND OF THE INPUTS DEPENDS ON SUPPLY AND DEMAND OF THE FINISHED PRODUCTS
4 The Vital Signs Corn $/ Bushel SBM $/ton Calories/lb of feed Days to 6 lb Average body wt lb Calories/lb gain Feed cost $/ton Feed cost /lb bird Waldroup, USGC seminar
5 Competitive poultry producer (Aho, 2000) 1. Low feed and labor costs 2. Good business climate 3. Vertical integration & Economies of Scale 4. Access to Technology
6 Advantages in Brazil Good climate: low cost housing Low cost of labor Inland feed ingredients (corn, soybeans) Combined with: Integrated production (contract) Big companies with good management Modern equipment Innovative and market-driven Low level of governmental regulations e.g. use of MBM and growth promotors
7 Cheap Labor is not the determinant cost factor.. TOTAL COST PER 1 MT OF LIVE BIRD US$ per MT PROCESSING COSTS** Live Bird % Labor % Expenses % Packaging % % Baker,2002
8 but feed and therefore raw materials are. COSTS FARM US$ PER MT LIVE BIRD DAY OLD CHICK (DOC) US$ % Parent Stock % Feed % Other % Expenses % % LIVE BIRD per MT to PLANT DOC % Feed % Vaccine % Farm/Transport % %
9 The key factors, all have to be optimised Genetics Given Housing Environment Chick Management (tying it all together) Feed and Water Health and Bio security
10 In Nutrition, the Three Most Expensive Nutrients are: 1. Energy 2. Amino Acids (protein) 3. Available Phosphorus
11 Amino acids (% of feed) Precision Feeding Prestarter Broiler optimum balanced amino acids Starter Grower Age of broiler Finisher Withdrawl
12 3 Feeding program for broiler 1. Maximum growth and feed conversion 2. Reduced cost formulation 3. Maximizing meat production Cobb (2003)
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14
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16 Withdrawal Feed For 2 kg broiler, 25% feed consumed in 5-7 days prior to slaughter Remove drugs, vitamin, mineral, feed additives 7 days before processing Cost reduction can be >2%, and also protect consumers from residue
17 Separate feeding Male and female are grown separately There is different requirement between sex especially amino acids Increase profitability
18 Formulation not only Least Cost Selecting the proper nutrient density is one of the primary determinants of profit in growing broilers Energy costs make up about 75% of total cost of producing broilers Modern broilers do not adjust feed intake in direct proportion to dietary energy. Formulating diets on basis of least cost per caloric unit (energy and associated nutrients) has consistently been shown to result in the lowest feed cost per unit of gain. 18
19 Calorie Conversion Ratio Calories per unit of gain Eliminates the variability of dietary energy level in determining nutritional efficiency Enables a better comparison of efficiency between groups differing in dietary energy Has become the standard of comparison in statistical surveys of broiler companies Grower bonuses now based on relative performance versus peer growers. 19
20 Ratio DThr/Dlys on FCR Bro Grower (14-28 d) Lys (% dig) Thr (% dig) C C Corzo et al., 2009
21 Suggested Amino Acid Ratios AA Starter Grower Finisher TSAA Thr Val Ile Arg Trp Dozier, 2012
22
23 38-45 d BW gain (g) FCR Quality pellets improve BW and FCR BW (g) FCR The caloric value of good pellets was estimated at 187 kcal/kg!! P 80 P 60 P 40 P 20 P Mash 1.75 McKinney and Teeter, Poult. Sci. 83:
24 Effect of Digestible Lysine and Feed Form on AWG-Trial a a 850 d cd cd bc cd cd grams e e Mash Pellet Beyer, 2009 Digestible Lysine, % P=0.0009
25 Form of feed by age of broiler Age Feed form and size 0-10 days Sieved crumbs days 2 3mm diameter pellets 29 - process 3 mm diameter pellets Ross (2002)
26 Particle Size of Corn and Sorghum & ADG in Broilers g P-size quad (P < 0.01) C vs S x P-size lin (P < 0.02) Sorghum Corn SE Hancock, 2010
27 Stress Reduce with housing management and with nutrition
28
29 Key performance indicators Total liveweight marketed Total mortality Total feed used Average liveweight Average FCR Average age Age corrected to standard weight FCR corrected to standard weight Feed cost per kg liveweight Total cost per bird and per kg liveweight Maximum biomass (kg liveweight per m 2 )
30 Performance (EPEF or IP) different countries in Asia
31
32 Sealed vs. Unsealed Side Wall (University of Georgia) Koldehoff, Big Dutchman seminar
33 Advance Information and Technology 33
34 Early Feeding Early access to feed: Stimulation of intestinal motility (Noy and Sklan, 1998) Increased body and organ growth Improved livability Immune function (Dibner et al., 1998) Carcass yields (Noy and Sklan, 1999) Early feed deprivation: Shorter villi and microvilli (Uni, 1999) Reduced muscle growth (Vieira and Moran, 1999) Reduced lymphocyte colonization (Dibner et al., 1998; Bar Shira et al, 2005) 34
35 Threonine for Immunity Average daily temp 30+5oC and Rh in the barn 85+3% 35
36 Is Creatine important? Payne,
37 Potential Benefits of Enzyme Supplementation Increase feed efficiency Decrease gut maintenance cost Reduction in endogenous flow and enzyme production Improve performance Improve litter quality Improve bird uniformity May also lead to reductions in pathogenic microflora and improvements in bird health and welfare Decrease production costs!!! 37
38 Body weight (g) Effect of High Phytase Levels on 0-16 d Performance BWG FI FTU/kg Waldroup, USGC seminar
39 Feed Additives Usage Efficacy: what is the content of FA? What level, Mode of action? Is it proven scientifically (peer review Journal), do your own trial, other big guy using it? Improve efficiency: what is your farm main problem? Nutrition, Disease, Management, Genetic? test in your farm using + & - control with sufficient replicates Risk Analyses: what is current data, is it going to affect animal performance, will FA overcome problem Economic return: Cost Addition or Reduction? how much pay back? Comparison with similar product, require Investment?
40 Conclusion & Recommendations Reduce cost of broiler feed and feeding Nutrients, Formulation, Precise Feeding Control environments to reduce stress & diseases Recommendations: 1. Adopt new technology 2. Benchmark to the leading broiler 3. Always improve Efficiency 40
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