Production Control I: The Key To Profits David A. Roland 1, Sr., M. M. Bryant 1, M. Farmer 2 and A. Roland 3 Auburn University 1 Auburn, AL Ridley Inc. 2 Mankato, MN Roland Poultry Services, LLC. 3 Auburn, AL SPSS Atlanta, GA January 21-23, 2008

Production Efficiency has never been better! Egg Producers (losing money) (losing money) Egg Producers (losing money) (losing money) PRODUCTION MANAGER MARKETING MANAGER WE HAVE TOO MANY EGGS! Low Egg Prices

HIGH EGG PRICES AND PROFITS MARKETING MANAGER Goal: highest egg price We need more eggs! PRODUCTION MANAGER Goal: optimal production efficiency Come on girls…gimmie all you got! Production efficiency has never been better! Good Team Work Helps Optimize Profits …OK !

EXCESS EGGS = LOW EGG PRICES = NEGATIVE RETURNS MARKETING MANAGER Goal: highest egg price We have too many eggs! Losing Money PRODUCTION MANAGER Goal: optimal production efficiency Come on girls…gimmie all you got! Production has never been better! Poor Team Work Results in Excess Eggs and Negative Returns ?

PRODUCTION CONTROL = KEY TO PROFITS MARKETING MANAGER Goal: Highest Egg Price We have enough eggs! PRODUCTION MANAGER Good Team Work = Reduced Egg Supply and Faster Return to Profits Okay girls. Take a breather, demand has been met Thank you New Goal: Optimal Profits

Moral of the story…. Marketing and Production working together using new technology can improve production control and profits!

Economically Optimal maximum response deficient Nutrient requirement for max profit varies Nutrient level (Lysine, Protein) Cost Performance How nutrient requirements are determined ?

Feeding Based on Intake (Lys. Mg/h/d) FC (lbs/100h/d)(W-36) DietLys (229) a 881 (255) a 1013 (293) a (229) a 792 (255) a 908 (293) a (229) a 681 (255) a 792 (293) a Typical Feeding Program a ME/h/d

Profits (¢/doz.) (Phase II) FC (lbs/100h/d)(W-36) DietLys% ? ? ? ? ? ? Feeding based on intake saves money. Blindly making changes.

Profits = UB egg price – [ Back of UB – Prod. Cost – Process. Cost – Feed Cost ] Example: Production cost Cost of nest run into package product delivered Back Urner Berry

Profits (¢/doz.) (Phase II) Feed Consumption (lbs/100h/d) (W-36) DietLys Best diet varies depending on egg and feed price

Profits (¢/doz.) (Phase II) Feed Consumption (lbs/100/day) DietLys% Low Egg Prices with High Protein Cost

Profits (¢/doz.) (Phase II) Feed Consumption (lbs/100/day) DietLys% Low Egg Prices with Low Protein Cost

18% P Phase % I. Prior to 50’s – fed one diet II. 60’s (fed based on age) III. 70’s ( fed based on intake) IV. 80’s & 90’s (Envir. Cntl. & soft ware) 20 th Century 21 st Century V. 2000’s Econometric Feeding Important Periods in Optimizing Protein and Energy Phase % Phase % Lbs/100 h/d Lbs/100 h/d Example: Product X % Prot % VI. Production Control

Econometric Feeding and Management (E F & M) Program 1.Feed formulation 2.Traditional feeding program 3.Record keeping * 4.Econometric Feeding and Management (E F & M) 5.PRODUCTION CONTROL

Wks 21-36Production (%)Egg weights (g) flkF dec dec Avg Lysine

Profits (¢/doz.) (Phase II) FC (lbs/100 h/d) DietLys.% ( ) lb = 789 mg/h/d, 20.9 lb = 825 mg/h/d (5% variation) Can we improve Lysine (mg/h/d) Delivery? lbs/100 h/d

Available Lysine Standard Lysine (mg/h/d) Pre-MoltPost-Molt I II III I II III Weeks of ageWeeks after molt IV Phases

Phase II - Egg Weight %LysDiet

How to Adjust Nutrient Intake in ± 2.5% (.5 lb) Increments Lb/100/d % Lysine Intake (19.5) (20.5) 20.0 – 20.9 (21.5) 21.0 – 21.9 Lys mg/h/d 817 Intake (19.0) (20.0) 19.5 – 20.4 (21.0) 20.5 – 21.4 Lys mg/h/d 800 Intake (20.0) (21.0) 20.5 – 21.4 (22.0) 21.5 – 22.4 Lys mg/h/d 840

Flock Variation (Avg. wk 21-36) Environmental Control FlockEW (g)Prod. (%)FlockEW (g)Prod. (%) Complex Avg. – best 1 million + Variation in egg weights = 3.8g/egg (3.0 lb/case) vs 1.2 g/egg Variation in egg production = 10 % vs 2.4 % diet