Improving efficiency and cost of production The Profit Equation PROFIT = PRICE – COP ((Feed Price x HFC ) +(Other costs) ) x Volume (pigs sold x weight)

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Presentation transcript:

Improving efficiency and cost of production

The Profit Equation PROFIT = PRICE – COP ((Feed Price x HFC ) +(Other costs) ) x Volume (pigs sold x weight)

Pig Price

Profit over 14 years ($/sow) based on APL Pig stats and Pig Annual

Comparative costs (Euro/kg carcass weight) CountryCost of production (E/kg) Brazil.99 USA 1.13 Canada 1.16 Poland 1.18 Netherlands 1.30 China 1.35 Australia 1.36

Relative business indicators Business indicator USACanadaBrazilAustralia COP (A$/kg) HFC- CW Carcass Wt./sow/yr (kg) Feed ($/tonne)

Core program areas 1. More reliable and lower cost energy and protein supply 2. Herd feed conversion efficiency 3. Functional pork products 4. Education and training

Core Participants A shared vision… University of Sydney Supporting Participants Bartlett Grains Pty Ltd WAAPC – Pork Producers Committee Grainsearch Pty Ltd Australasian Pig Science Association

Potential improvement in profit and flexibility Current Targets Price ($/kg) 2.4 HFC (Carcass) Feed ($/kg) Total feed($/kg) Other ($/kg) COP ($/kg cwt) Pigs /sow/yr Weight (kg) Profit/sow ($/yr)

HFC Currently averages 4.2 on a carcass weight basis for Australia (APL Pig Annual 2004). USA average closer to 3.7 Rather scary when feed costs 27 cents/kg.

Causes? Genetics? Wastage? Poor health ? Low energy diets? Light selling weights? Reproduction Tell me?

Effects of dietary energy -Fat Potential to get added effect on feed efficiency Reduce total feed delivered Enhance performance in commercial situations Reduce grain usage Flexibility

Australian Information Results of experiment with boars and gilts reported by Henman etal in Five levels of DE (calculated) ranging from 12.0 to 15.2 MJ/kg. Animals housed in groups of 10 in commercial-type barn. Duration of 42 days starting at 63 kg.

Effects of DE on growth rate (g/d) of pigs over 42 days starting at 60 kg.

Effects of dietary DE (MJ/kg) on carcass weight (kg)

Effects of dietary DE on feed: gain

Effects of dietary DE on carcass feed: gain

Effects of genetics Comparison of gilts from two genetic lines. Results from the USA. Pigs compared on the same diets in the same facility.

The feed:gain of gilts from two genetic lines

Growth rate (LB/d) and weight (LB)

Effects of genetics available today Performance ( kg) Genetics 1Genetics 2 Feed:gain 2.09 (31.4 MJ DE/kg) 2.51 (37.7 MJ/kg) Feed (kg/pig) Growth rate (g/d) Grower feed for 5,000 sow unit (tonne/y) Cost difference ($) 15,030 ($795,600) 18,090

Effects of 5ppm Paylean for last 21 days ControlPaylean Growth rate(g/d) Feed usage (kg/pig) MJ/kg gain

Improving Feed Efficiency We haven’t begun to get serious about FE? Potential to dramatically reduce feed usage if willing to try different approaches. Need to understand the constraints and some may be inherent in our animals and systems. An exciting area, I look forward to working on with our partners and Australian producers.

Potential effects of Paylean and PST (Enhancing performance in late finishing) Paylean at 5 ppm for last 21 days. Paylean for last 21 days and PST for last 7 days. Predicted effects on growth rate,F:G and P2 Using genotype # 1 with good health.

Effects on Growth Rate

Effects on Feed:Gain

Predicted overall effects ControlPayleanPL + PST Weight (kg) ROG (g/d) F:G Carcass (kg) P2 mm