2013 Iowa Pork Regional Conferences
Welcome
sponsored by
Iowa Pork Producers Association
Iowa Pork Industry Center
Iowa State University
Sheldon, Iowa
Uncharted Territory
• Pipeline corn supply – local shortages and
abnormal basis
• Subsoil moisture
• Record high corn price
• Long tail feed prices after drought
Opportunities
• Markets can change – are you
prepared?
• Two big possibilities: • Short crop long tale – business almost
as normal
• Another short crop- have you thought
about a plan?
2013 Iowa Pork Regional
Conferences
Stretching Corn Needs for Pigs
& Improving
Feed Utilization through
Management and Technology
Diet Relation to Organic Fertilizer (Manure)
Composition
Possible Situation:
Below Trend Line Yield this
Summer
• May not be a problem if enough acres planted
• Will be a problem is feed demand exceeds growing crop supply
– Feed cost skyrocket
– Market price depression, especially cull sow
– Future profit potentially big as crop supply eventually buries demand
Options for the Situation
that Feed Demand is more
than the Growing Crop can
Supply
• Quit, but will be expensive without a plan
• Do nothing different – leave risk management
in place
• Have a plan in place to reduce your corn
usage –less corn to buy or more corn to sell
What would be in a plan?
• Stretching the feed supply – Culling, reducing numbers or weight
• Increasing the utilization of feed and or decrease cost of gain – FE improvement, alternative feeds, diet
formulation
• Change from a maximum throughput financial mindset, to a reduced cash cost per pound gain mindset.
• (only applicable when market price is less than cash expenses)
How to Stretch the Grain
Supply in the Sow Herd
Develop your specific plan for a changes in
production &/or management: (Remember that if cost becomes larger than market price, strategic
reduction in numbers, weight and feed use/cost is now the goal)
• Herd health
• Batch farrow transition
• Condition score adjustment
• Weaning age shift
Pig weaning weight
11 12 13 14
Total annual weaned pig weight (lb)
286 312 338 364
lb feed/lb pig
7.35 6.73 6.22 5.78
Sow Feed Disappearance and Pig Weight Weaned Determine Feed to Weaned Pig Weight Ratio (Assumption:26 pigs/sow/year and 81 lb feed/pig)
Fixed pig flow (discussion)
• Advantages
– generally max facility utilization, more lb
pork per sq ft of floor space, more lb sold.
– More profit during normal margin times.
– Spreads out cost for high fixed cost
operations
Fixed pig flows (cont.)
• Disadvantages:
– Rate of gain is vital, lower end weight reduces income, more culls
– If time is tight & gains off = more cull pigs
– If over stocked --- potential for stress = increasing likely disease, increased health cost & death loss
– Reduced weights, marketable hogs etc
During low margin times: Flexible, more space available flow could enable some cost saving options
If a time comes when cash cost
exceeds market price, then
throughput is useless, concentrate
on cost reduction
A $3/head 2% cost reduction value?
• At $150/hd Market
• 900 hd profit $2700
• At $160/hd market
• 900 hd profit $11,700
• At $170/hd market
• 900 hd profit $20,700
• At $180/hd market
• 900 hd profit $29,700
• 1000 hd $0 profit
• 1000 hd $10,000 profit
• 1000 hd $20,000 profit
• 1000 hd $30,000 profit
Produce 1000 pigs at $150 cost/hd OR Produce 900 at $147
Other Breeding Herd Streamlining
Ideas
• Culling increase including low
productivity index sows
– Recycle sows also have lower productivity
– Detect and cull open sows ASAP
• Understand seasonal profitability cycles
and cull based on potential profit
probability of offspring
Barrows and gilts (IA-So MN) seasonal
price index
Average profit per head Farrow to Finish ISU Estimated Returns, 2003 to 2012
Average profit = $3.61 /hd
Bred Marketed
Apr Jan ($ 4.82)
May Feb $ 1.19
Jun Mar ($ 0.28)
Jul Apr $ 4.12
Dec Sep $ 1.93
Jan Oct ($ 3.05)
Feb Nov ($10.56)
Mar Dec ($ 8.97)
= Avg. 8 mo ($ 2.55)/hd profit
Bred Marketed
Aug May $16.95
Sep Jun $18.32
Oct Jul $15.03
Nov Aug $13.45
May thru Aug =
$15.94 /hd profit
ISU Estimated Returns
Farrow to Finish, 2002-2012
Average profit per head/month
May June July Aug Avg. Profit
$16.95 $18.32 $15.03 $13.45 $15.94
Nov Dec Jan Avg. Profit
- $10.65 - $ 8.97 - $ 4.82 - $8.12
If 9 pigs / litter
marketed
$216.47 $143.43 $-73.04
Bred
July Aug Sept Oct
Bred
Jan Feb Mar
How to Stretch the Grain
Supply for Wean to Finish
• Culling to reduce numbers
• Sell lighter weight (keeping all four factors influencing optimum weight in mind)
• Higher level management – use of records to track weight and make cost effective
decisions
– Attention to details
• Alternative feeds/diet formulation
• Increasing the utilization of feed and or decrease cost of gain
–Feed efficiency improvement
Wean-Finish Production
Culling practices (waste)
@ placement
@ day 56 or entry into finisher
@ day 126 (70 d finisher)
@ first pull – not only biggest but also
non-marketable pigs
Non-marketable pigs consume feed
Four Main Factors that
Influence the Target Sale Wt.
• Margin – return over variable (feed) cost
• Price change magnitude and direction with
seasonal probabilities
• Ability to estimate weight of market pigs
• Packer grid
– Sort loss
– Grade premium (no longer an issue at select
plants)
Strategies for Finishing Hogs
Periodically do a market weight reduction
analysis to make sure gain = return over cost
Example: Should you sell a 265 or 275 lb hog?
o If feed cost = $.20/lb (feed conv. = 3.80) then
o 10 lb live wt gain costs $7.60 in feed (38 lb x $.20)
o So carcass wt gain = 7.5 lb (10 x 75% yield)
o Breakeven for the feed = $101.00/cwt
So what is your cost of feed and sell price?
Barrows and gilts (IA-So MN)
seasonal price index
13% UP
4% UP
5% UP 6% down
5% Down
8% Down
Use formula from Ag
decision maker B2-14
• To estimate the future month price based
on the current month price:
• Current price/current month Index * Future
Month Index Price = Price Forecast
Packer Grid
51% 52% 53% 54% 55% 56%
$4.00 $5.50 $7.00 $7.00 $7.50
Genetics makes a huge difference in target market weight and feeding strategy
If you have never plotted out your kill sheets with weight and lean premium, we can help you-- contact your ISU Swine Field Specialist
Packer Grid – sort loss
281-290
291-300 -$1.00
301-310 -$2.00
311-320 -$3.50
321-330 -$5.25
331-340 -$6.75
340 & up -$8.00
181-190 -$13.61
191-200 -$9.52
201-210 -$6.76
211-220 -$4.05
220-230 -$1.35
231-240
241-250
251-260
261-280
1. The Eye of the Sorter
• Scales to weigh the pigs?
• Average weight may not be helpful
– The average is a perfect 270, right in the middle
of the grid – sort loss can still be extreme,
– for example if half the pigs weigh 220 and the
other half 320.
• If you are consistently loading small pigs in
the first loads with big pigs left in the pens
you should change or train the person in
charge of pig sorting.
ISU Extension & Outreach Feed Budget Est 1st Pull :
Prepared for: Level Up Pork
Location: Nashau Site 1 Gain Adjustment 103%
Start Date: 4/1/12 Feed Intake Adjustment 90%
Pigs / group : 1,000 ADG 1.55
ADFI 3.90
Nursery, Finisher or Wean-Finish programs FG 2.51
In Wt Out Wt Ration ID
feed
budget lb
/ pig
Days Tons
Days
on
Feed
12 15 Pellets 3.3 6 2 4/6/12 Fri 6
15 25 S-1 13.3 15 7 4/21/12 Sat 21
25 35 S-2 14.0 10 7 5/1/12 Tue 31
35 50 S-3 25.1 13 13 5/14/12 Mon 44
50 80 F-1 63.3 23 32 6/6/12 Wed 67
80 120 F-2 96.5 25 48 7/1/12 Sun 92
120 160 F-3 100.3 21 50 7/22/12 Sun 113
160 200 F-4 103.5 19 52 8/10/12 Fri 132
200 240 F-5 114.5 19 57 8/29/12 Wed 151
240 280 F-6 138.0 22 69 9/20/12 Thu 172
Fed by
8/30/12
Use records to set the date of the first pull to save feed.
How much corn is needed
How sell weight affects needs 12 month period, 13,000 pigs/yr 12 - ?? lb
Corn locked in as each group is placed
Sell wt of 280 lb bushels
250 84% (14,289)
260 89% (9,588)
270 95% (4,826)
280 100% 90,054
290 105% 4,886
300 111% 9,922
pigs placed Nov 1, 2012 through Oct 31, 2013
Alternative feeding strategies
During low margin periods of time, cost of gain
becomes more important than, throughput or
growth rate until profit returns to the industry.
Look for alternative feedstuffs and cost effective
substitutions for grain and soybean meal
Shadow pricing vs stretching physical ownership
– Excel spreadsheet
Alternative feeding programs
• Source
• Availability – amounts and time
• Storage: mill or on-farm
– is there room
– What will be replace – opportunity costs
• Lowering nutrient density – not trying to maximize
performance
• But understanding how this affects yield and quality
Reducing Oil content in DDGS DDGS Modern Low oil
Low oil
adj Diet
C Protein, % 26 27 27
ME, kcal/lb 1500 1455 1455
Lysine, % 0.75 0.65 0.65
Fat, % 9.5 3.5 3.5
Corn 1,265 1,265 1,248
SBM (46%) 215 215 232
DDGS 461 461 461
ME, Mcal 233 232 231
Lysine, lb 5.79 5.63 5.80
Fat, lb 7.30 4.89 4.86
Amount consumed from 20 - 270 lb
Nutrient profile
Equate lb consumed to lb / mixed ton of feed
Understand Expectations may Need
to Change
– Gains, days on feeds
– feed efficiency
– carcass yields
• Morbidity and/or mortality
• Frequent changes in
dietary makeup
• Changes in growth performance
Weanling pigs – the basics
Anything and Everything to keep pigs healthy
Special attention to environment to keep pigs
healthy - warm, draft free,
Keep in the thermo neutral zone, all phases
Fresh feed
Fresh clean water
Pigs don’t eat they can’t gain
• Influence of Particle Size
• Influence of Pelleting
• Influence of Temperature
• Effect of Dietary Energy
on Feed Efficiency
• Influence of Ractopamine
• Impact of Feeder Design
and Management
• Particle Size Testing
Methodology
• Not Always Linked to Net
Income
• Genetic Impact
• Decision Tree
• Influence of Market Weight
• Influence of Amino Acids
Publications
Particle Size
Processing of whole grains
Improve nutrient digestibility
Rough rule of thumb: 1.2% from 100
micron reduction
Recent studies suggest lower micron size
may be advantageous
Particle Size
While F/G continues to improve, particle size <600
microns may:
Increased energy of grinding or rolling
Feed bridging in storage bins and/or feeders
May increased incidence of ulcers in finishing
pigs
Low particle size feed dust
Pelleting Feeds
Advantages: 4-8% improvement FG
Feeds with particle size (<
500 microns)
Fibrous/low density
ingredients
Improved flow ability
High $ starter rations
$450/ton starter x 6%
improved FG
= $27/ton savings
Disadvantages:
Long term capital expenditure
Additional $/ton pelleting costs
Reduced tons/hour output
Pellet Quality is important
if poor quality
o 40 to 60% fines reported same
FG as meal
o Frequent feeder adjustments
Effective Temperature
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
Effe
ctiv
e t
em
pe
ratu
re,
oF
Body weight, lb
Upper Critical Limit
Lower Critical Limit
Thermoneutral Zone
Cold Stress
Heat Stress
Effective Temperature = . Air temperature adjusted for
relative humidity and air movement
Thermal Neutral Zone, Upper &
Lower Critical Temperatures
0
2
4
6
8
10
12
14
16
18
Mcal intake
Feed/gain
ADG, lbs
TNZ UCT LCT
Cold Stress Heat Stress
Winter Summer
Feeders
Think about Feeders
If feeders are old replace them. Feed savings will
recoup cost very quickly
• Pigs under 40 lb – only dry feed
– Wastage
– Potential for molds
– Pigs don’t start well
• No difference in feed efficiency between wet or dry
feed for grow-finish pigs
• Wet feeders waste less water
Think about Feeders
Feeder Design
Pigs per feeder hole (11-12 dry; 15 wet/dry feeder);
Does not indicate stocking density
Ease of adjustment – inside and at the top
Ease of cleaning
Durability
Quality of feeding space
• can the pig eat comfortably
• will the pig be easily displaced by another pig?
0
5
10
15
20
25
30
35
40
Back Eat Root Fight Step
Perc
en
tatg
e o
f T
ime
Pig Eating Behaviors
Pig Behavior Associated with Feed Wastage, Gonyou 1998
90 lb pig
180 lb pig
Feed wastage was 4.4% (90 lb pigs) vs 2.4% (180 lb pigs)
Causes for Feed Wastage
Quality
of
Feeder
Space 14”
≈40O Chin angle
10” - is the pigs spatial requirements dictate the width and depth of the feeding space
Adjusting slot opening – Pan Coverage
Dry Feeder opening/adjustment
• Pigs < 150 lb 50 to 60% coverage
• Pigs > 150 lb • 30 to 50% coverage
15%
55%
80%
Improving Feed Efficiency
Benchmark Finisher example: – 60 to 270 lbs. ADG 1.84 F/G 2.85
Corn $7.00 392 $49.00
DDGS $282.00 140 $19.74
SBM 48 $400.00 58 $11.60
Pmx w/phy $0.31 11.9 $ 3.69
Lysine HCL $1.40 1.1 $41.61
Potential Benefit: (Feed=Expense) Item % improve Feed, lbs/hd $/hd
• Particle Size (200) 2.5% 15 $2.15
• Pelleting 5.0% 30 $4.29
• Feed Wastage 4.0% 24 $3.43
Feed Cost/ton: $284/ton Feed: 603.5 lbs./hd Feed $: $85.64/hd
Ractopamine (Paylean®)
Disclaimer: this information is provided for awareness, not a general recommendation for the product.
Each operation is unique regarding use:
– Seasonal profit potential
– pig flow (Space limited, high margin – need more wt Vs flexible space, low margin period)
– uniformity of pig entry and market weights
– percentage of saleable pigs
– logistics of feed deliveries and pig marketing
– feed cost
– genetics, health
– packer grid lean premiums or lack of
Economic Analysis
of Swine Diet Cost
Vs Manure Value
Dave Stender ISU Swine Field Specialist
712-261-0225 or [email protected]
Economic Analysis of Swine Diet Cost Vs Manure Value
• Construction of a barn – manure’s worth
• Not all manure is equal
o Diet formulation impacts manure
nutrient value
o Full $ value (NPK) manure Vs $ nitrogen
o Water management/wastage
o Measuring manure yield per pig using a
manure test
National Center for Manure
and Animal Waste
Management
White paper summary statement:
• In swine, the impact of AA
supplementation with low CP diets to
reduce N excretion ranged from 28 to 62%
depending upon the size of the pig, level
of dietary CP reduction and initial CP level
in the control diet.
Lower Protein Diets with
added amino acids will
reduce nitrogen content in
manure
• The average reduction in N excretion per
unit of dietary CP reduction was 8.4%.
National Center for Manure
and Animal Waste
Management
White paper summary statement:
• Research has shown that phytase addition
will reduce P excretion from 25 to 35%.
Looking at an Example using the Following Dietary & Performance Assumptions:
Performance
• Start wt 12 lb
• End wt 270 lb
• Feed 698 lb
• ADG 1.51
• ADFI 4.10
• F:G 2.71
• Days 170
Ingredient pricing, $/ton
Corn $7.00/bu
SBM (46%) $400
Lysine (AA) $2,800
Premix $720
Premix/Phy $620
DDGS $300
Feeding Scenarios – Lysine (AA), Phytase, &/or DDGS
Lysine /AA no yes yes yes yes High AA no hiAA no
DDGS no no no yes yes yes yes no yes
Phytase no no yes no yes yes yes yes no
Corn 530.9 567.3 567.3 441.2 441.4 453.0 404.4 579.5 404.1
SBM (46%) 148.0 110.2 110.2 75.5 75.2 59.9 113.6 94.3 113.9
Lysine 1.4 1.4 1.4 1.4 5.1 0.0 5.1 0.0
MDL ISU-Pmx 13.4 13.4 13.4 0.0 0.0 0.0 13.4
MDL ISU-Pmx-Phy 13.4 13.4 13.4 13.4 13.4 0.0
DDGS 160.9 160.9 160.9 160.9 0.0 160.9
Total lb/Pig 698 698 698 698 698 698 698 698 698
$ Feed /pig $105.49 $104.40 $103.73 $105.82 $105.13 $108.69 $106.26 $107.25 $106.95
Feeding Scenario
Feed Savings per Pig in Our
Example
• Base diet $105.49 feed cost per pig
• Adding lysine $104.40 feed cost per pig
• Feed savings per pig = 1.09
• How much is the manure reduction?
• From the model 6.92 lb of N per pig in manure is reduced to 4.77 with low protein added amino acid diet.
• A difference of 2.15 lb N worth $.55/lb is $1.18 reduction in manure N value
Model’s Nitrogen projections
Based on NRC 2012
CS CSL CSL CSL CSL CS-hi-AA CS CS-hi-AA CS
phy DDGS phy-DDGS phy-DDGS phy-DDGS phy DDGS
Dietary 21,120 18,480 18,480 22,200 22,200 21,480 24,840 17,640 24,840
Retained 12,720 12,720 12,720 12,720 12,720 12,720 12,720 12,720 12,720
Excreted 8,280 5,760 5,760 9,480 9,480 8,760 12,120 4,920 12,120
lb per 1,000 gal 58 40 40 66 66 61 85 34 85
$0.55 /lb value $31.82 $22.13 $22.13 $36.43 $36.43 $33.66 $46.57 $18.91 $46.57
Gallons of manure produced / group 143,136 (0.7 x 170 x 1200 pigs) x 1000
Feeding Scenario
Estimated Nitrogen, lb / 1,200 pigs
Lowest N manure from diet
The Value of N in Manure
• The value of N in Manure can be as low as
$19 of N per 1000 gal for a CS high AA,
low protein diet
• 1.9 cents per gallon, nearly equal to the
cost of hauling
Another Example Comparing
DDGS addition
• Adding lysine diet - $104.40 feed cost per pig
• Adding DDGS - $105.82
• Feed cost increase per pig = $1.42
• How much is the manure increase?
• From the model 4.77 lb of N per pig in manure
is increased to 7.87 with DDGS
• A difference of 3.10 lb N worth
$.55/lb is $1.71 increase in manure N value
Model’s Phosphorus projections
Based on NRC 2012
CS CSL CSL CSL CSL CS-hi-AA CS CS-hi-AA CS
phy DDGS phy-DDGS phy-DDGS phy-DDGS phy DDGS
Dietary 3,960 3,720 3,240 4,560 4,080 4,080 4,200 3,240 4,680
Retained 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Excreted - P 2,040 1,920 1,440 2,760 2,280 2,160 2,400 1,320 2,880
Excreted - P2O5 4,672 4,397 3,298 6,320 5,221 4,946 5,496 3,023 6,595
lb per 1,000 gal 33 31 23 44 36 35 38 21 46
$0.55 /lb value $17.95 $16.89 $12.67 $24.29 $20.06 $19.01 $21.12 $11.62 $25.34
Gallons of manure produced / group 143,136 (0.7 x 170 x 1200 pigs) x 1000
Feeding Scenario
Estimated Phosphorus, lb / 1,200 pigs
Feed Savings per Pig in Our
Example
• Lysine diet $104.40 feed cost per pig
• Adding Phytase- $103.73 feed cost per pig
• Feed savings per pig = $.67
• How much is the manure reduction?
• From the model 3.7 lb of P per pig in manure is
reduced to 2.74 with phytase added.
• A difference of .96 lb N worth
$.55/lb is $.53 reduction in manure P value
Diet changes impact $/1000 gal
$61.77
$50.67$44.89
$74.67$69.18
$65.01
$80.09
$41.52
$84.77
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
CS CSL CSL-phy CSL-DDGS CSL-phy-DDGS CS-hi-AA -phy-DDGS
CS-phy-DDGS CS-hi-AA -phy CS-DDGS
K2O P2O5 N
Range in Value Because of
Feed Formulation
• The range from the highest value manure
to the lowest is $43.25/1000 gallon
• In our model 8.3836 pigs per 1000 gallon
• $5.16 difference per pig
• About $23,500 on a 2400 hd site
Full value (NPK) manure Vs
nitrogen value
o Not much nutrient Vs volume or weight
in swine manure
o Test comes back as 35 lb per 1000 gal,
creates confusion with fertilizer analysis
o For example a 35-20-15 fertilizer would
have 2800 lb of N, not 35
Lowest cost haul – field next to
barn leading to potential over-
application of nutrients in that
field, especially P an K
• Instead of over application of P and K on a field next to the barn testing very high, transport the manure to a field with low P and K soil test.
• Economically, cost of haul, time is a huge factor (lost opportunity income from short haul jobs)
Nutrient dense, higher value
manure is more likely to be
tranported to more
environmentally friendly fields
• For example, if hauling cost is $15/ 1000 gal and it takes twice as long to haul to a low P and K testing field, then opportunity cost is $30/1000 gal
• Would you be more likely to take extra time to haul a tank worth $85/1000 gal or $42 to a low testing field?
Drinkers - water usage/waste
Water usage/wastage changes
the manure test
• Rule of thumb is 13% dry matter with no
water wastage or wash water.
• Typically 6 to 7 % solids for most manure
tests
• Goal is 10% solids – manure values will
increase
Thinking in terms of nutrient
yield check in pigs
• Base line diet without added DDGS will yield 6.92 lb. of N per pig.
• Check your N output per pig with the following formulas:
• First, calculate accurate gallons removed per year – cubit feet times 7.5
• Divide by total number of pigs on feed for the year to get gallons per pig
• 1000 divided by gallons per pig to get number of pigs per 1000 gallons
• Manure test value (# per 1000 gal) divided by number of pigs per 1000 gallon equals lb per pig
Take Home Points • Diet formulation will change the nutrient content and value of
manure substantially
• Manure is more valuable in term of return on crop yield on low soil test fields
• Water usage/wastage will change the manure test, goal is more than 7% dry matter (13% dry matter would be no wash water or wastage)
• Higher manure nutrient content will make it more feasible to haul to low soil test fields
• Manure nutrients are variable and accurate testing is essential
• Measure the depth of manure applied per year to determine your pig’s manure nutrient yield and value.
Manure Value for Crop
• ISUEO Manure Calculator
• www.extension.iastate.edu/agdm/livestock
/xls/b1-65manurecalculator.xls
Manure Sampling
• How to Interpret Your Manure Analysis
• http://www.agronext.iastate.edu/soilfertility/
info/PM3014.pdf
• How to Sample Manure for Nutrient
Analysis
• http://www.extension.iastate.edu/Publicatio
ns/PM1558.pdf