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Budi Tangendjaja PhD
USGC SEA
Indonesia
How to feed broiler for
maximum profitability
WPSA Malaysia
Nov 30 – Dec 1, 2013 Outline
• Introduction
• Cost breakdown
• Nutrition
• Manufacturing
• Feeding system
• Bench marking
• New Technology
• Conclusion
2
WPSA Malaysia
Nov 30 – Dec 1, 2013
MANY (MEAT) BUSINESSES
FORGET BASIC ECONOMICS
DEPENDS ON
SUPPLY AND
DEMAND OF
THE INPUTS
DEPENDS ON
SUPPLY AND
DEMAND OF
THE FINISHED
PRODUCTS
WPSA Malaysia
Nov 30 – Dec 1, 2013 The Vital Signs
2007 2008 2009 2010 2011 2012
Corn $/ Bushel 4.03 5.48 4.19 4.39 7.10 7.32
SBM $/ton 239.85 344.35 353.87 321.00 364.92 428.59
Calories/lb of feed 1433 1425 1425 1420 1412 1405
Days to 6 lb 43.82 43.78 43.02 42.85 48.18 46.89
Average body wt lb. 5.91 5.84 5.87 6.05 6.13 6.22
Calories/lb gain 2671 2651 2627 2629 2709 2625
Feed cost $/ton 202.47 282.73 249.25 242.20 328.57 358.14
Feed cost ¢/lb bird 18.02 24.96 21.81 21.21 29.64 31.30
Waldroup, 2013. USGC seminar
WPSA Malaysia
Nov 30 – Dec 1, 2013
Competitive poultry producer (Aho, 2000)
1. Low feed and labor costs
2. Good business climate
3. Vertical integration &
Economies of Scale
4. Access to Technology
WPSA Malaysia
Nov 30 – Dec 1, 2013 Advantages in Brazil
Good climate: low cost housing
Low cost of labor
Inland feed ingredients (corn, soybeans)
Combined with:
Integrated production (contract)
Big companies with good management
Modern equipment
Innovative and market-driven
Low level of governmental regulations e.g. use of MBM and growth promotors
WPSA Malaysia
Nov 30 – Dec 1, 2013
PROCESSING COSTS**
Live Bird 536.29 84.78%
Labor 53.91 8.52%
Expenses 33.44 5.29%
Packaging 8.89 1.41%
632.53 100.00%
TOTAL COST PER 1 MT OF LIVE BIRD
US$ per MT
Cheap Labor is not the determinant cost factor…..
Baker,2002
WPSA Malaysia
Nov 30 – Dec 1, 2013
DAY OLD CHICK (DOC) US$ %
Parent Stock 5.90 0.93%
Feed 35.65 5.64%
Other 5.68 0.90%
Expenses 14.97 2.37%
62.20 9.83%
LIVE BIRD per MT to PLANT
DOC 62.20 9.83%
Feed 379.27 59.96%
Vaccine 21.93 3.47%
Farm/Transport 72.89 11.52%
536.29 84.78%
COSTS – FARM US$ PER MT LIVE BIRD
… but feed and therefore raw materials are……….
WPSA Malaysia
Nov 30 – Dec 1, 2013
The key factors, all have
to be optimised
Housing
Health and Bio security
Environment
Feed and Water
Chick Management
(tying it all together)
Genetics
Given
WPSA Malaysia
Nov 30 – Dec 1, 2013 In Nutrition, the Three Most Expensive Nutrients are:
1. Energy
2. Amino Acids (protein)
3. Available Phosphorus
WPSA Malaysia
Nov 30 – Dec 1, 2013
Am
ino a
cid
s (%
of
fee
d)
Age of broiler
Starter
Grower
Finisher
Broiler optimum
balanced amino
acidsPrestarter
Withdrawl
Precision Feeding
WPSA Malaysia
Nov 30 – Dec 1, 2013 3 Feeding program for broiler
1. Maximum growth and feed conversion
2. Reduced cost formulation
3. Maximizing meat production
Cobb (2003)
WPSA Malaysia
Nov 30 – Dec 1, 2013
WPSA Malaysia
Nov 30 – Dec 1, 2013
WPSA Malaysia
Nov 30 – Dec 1, 2013
WPSA Malaysia
Nov 30 – Dec 1, 2013 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
WPSA Malaysia
Nov 30 – Dec 1, 2013 Separate feeding
• Male and female are grown
separately
• There is different requirement
between sex especially amino
acids
• Increase profitability
WPSA Malaysia
Nov 30 – Dec 1, 2013
18
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.
Formulation not only Least Cost
WPSA Malaysia
Nov 30 – Dec 1, 2013
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.
WPSA Malaysia
Nov 30 – Dec 1, 2013
Ratio DThr/Dlys on FCR Bro Grower (14-28 d)
1.50
1.55
1.60
1.65
1.70
1.75
1.80
0.46 0.54 0.62 0.70 0.78 0.86 C
1.50
1.55
1.60
1.65
1.70
1.75
1.80
0.84 0.92 1.00 1.08 1.16 1.24 C
Lys (% dig) Thr (% dig)
1.08 0.76
70
Corzo et al. , 2009
WPSA Malaysia
Nov 30 – Dec 1, 2013
AA Starter Grower Finisher
TSAA 75 76 77
Thr 66 67 68
Val 76 77 77
Ile 71 71 71
Arg 108 108 108
Trp 18 18 18
Suggested Amino Acid Ratios
Dozier, 2012
WPSA Malaysia
Nov 30 – Dec 1, 2013
WPSA Malaysia
Nov 30 – Dec 1, 2013
23
Quality pellets improve BW and FCR
600
620
640
660
680
700
720
740
100 P 80 P 60 P 40 P 20 P Mash
38
-45
d B
W g
ain
(g
)
1.75
1.80
1.85
1.90
1.95
2.00
2.05
FC
R
BW (g) FCR
McKinney and Teeter, 2004. Poult. Sci. 83:1165
The caloric value of good pellets
was estimated at 187 kcal/kg!!
WPSA Malaysia
Nov 30 – Dec 1, 2013
Effect of Digestible Lysine and Feed Form on AWG-Trial 1
650
700
750
800
850
900
0.75 0.85 0.95 1.05 1.15
Mash
Pellete
e
d cd cd
bc cd cd
a a
Digestible Lysine, %
grams
P=0.0009
Beyer, 2009
WPSA Malaysia
Nov 30 – Dec 1, 2013 Form of feed by age of broiler
Ross (2002)
Age Feed form and size
0 -10 days Sieved crumbs
11 – 28 days 2 – 3mm diameter pellets
29 - process 3 mm diameter pellets
WPSA Malaysia
Nov 30 – Dec 1, 2013
Particle Size of Corn and
Sorghum & ADG in Broilers
30.0
33.5
37.0
900 700 500 300
g SE 0.3
P-size quad (P < 0.01)
C vs S x P-size lin (P < 0.02) Sorghum
Corn
Hancock, 2010
WPSA Malaysia
Nov 30 – Dec 1, 2013 Stress
Reduce with housing management
and with nutrition
WPSA Malaysia
Nov 30 – Dec 1, 2013
WPSA Malaysia
Nov 30 – Dec 1, 2013 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 m2)
WPSA Malaysia
Nov 30 – Dec 1, 2013
Performance (EPEF or IP) different
countries in Asia
WPSA Malaysia
Nov 30 – Dec 1, 2013
WPSA Malaysia
Nov 30 – Dec 1, 2013 Sealed vs. Unsealed Side Wall (University of Georgia)
Koldehoff, 2011. Big Dutchman seminar
WPSA Malaysia
Nov 30 – Dec 1, 2013
Advance Information and
Technology
33
WPSA Malaysia
Nov 30 – Dec 1, 2013 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
WPSA Malaysia
Nov 30 – Dec 1, 2013 Threonine for Immunity
35
Average daily temp 30+5oC and Rh in the barn 85+3%
WPSA Malaysia
Nov 30 – Dec 1, 2013 Is Creatine important?
36
Payne, 2013
WPSA Malaysia
Nov 30 – Dec 1, 2013
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
WPSA Malaysia
Nov 30 – Dec 1, 2013
Effect of High Phytase Levels on 0-
16 d Performance
200
250
300
350
400
450
500
550
600
650
0 2000 4000 6000 8000 10000 12000 14000
Bo
dy
we
igh
t (g
)
FTU/kg
BWG FI
Waldroup, 2013. USGC seminar
WPSA Malaysia
Nov 30 – Dec 1, 2013 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?
WPSA Malaysia
Nov 30 – Dec 1, 2013 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