1. Modern Swine Industry Modern Swine Production is Extremely Complex –Feeding strategies involve Feed ration formulation – nutrient levels Choice of number of rations to feed Choice of time periods for feeding rations Timing and feed concentration of growth promotants (e.g., antibiotics or ractopamine)

2. Modern Swine Industry (cont’d.) –Marketing strategies involve Choice of when to “turn the barn” with All- In/All-Out system Optimal target market weights and sort weights Contracts –Nutrient management / Air Quality Manure value positive or negative Feed additives (e.g., phytase) affect nutrient absorption

3. Modern Swine Industry (cont’d.) –Genetic Sources Match health in your system Production flow - All-In/All-Out system? Optimal target market weights and sort weights for these genetics –Marketing Agreements –Packer grids –Managing Inputs Feed Ingredients, etc. –ALL LINKED!

4. Economics of Swine Nutrition Cost per ton of feed Cost per unit of lysine Cost per unit of digestible lysine Cost per unit of digestible energy Total feed cost per pig marketed Cost per lb of gain Cost per lb carcass sold For Every 0.01 improvement in F:G will decrease total feed costs by $0.28-0.30/pig Boyd, 2008

5. Phase Feeding

6. Nutrient Requirements over Time Pigs' Requirement Typical Phase Feeding

7. Split Sex and Phase Feeding Split Sex feeding will save $0.50-0.75/cwt Phase Feeding – How much can it save? –Is more better?

8. Projected theoretical savings per pig due to increasing the number of diet phases. Number of Grow-Finish diet phases Diet cost per pig marketed a Savings compared to a Two phase program Incremental savings per additional diet phase 2$42.55---- 3$41.41$1.15 ($1.60)$1.15 4$41.01$1.55 ($2.48)$0.40 5$40.67$1.89 ($3.02)$0.34 6$40.43$2.12 ($3.39)$0.24 9$40.10$2.46 ($3.93)$0.11 12$39.90$2.65 ($4.24)$0.06 a Corn=$2.24/bu, 44% SBM = $240/ton; Assumed equal pig performance and feed intake b D.D. Koehler, 1997 (updated to $3.90/bu corn and $315/ton SBM, $900/ton DiCal – BTR 1/2009)

9. Corn Particle Size

10. Angle of Repose Hammer, Hammer, Roller mills Every 100 Microns reduction improves feed Eff. By 1.2% (7.5-10 lbs of feed/pig)

11. Feed Bridging

12. Management Options

13. Reduce Selling Weight Hit the Bottom of the grid instead of the top –IPC – 170-214 lb carcass (230-285 lb Live) –Pigs will be leaner and increase lean premiums –Need to be careful not to have too many lights Discounts 160-170 lb ($2/CWT) then $8 and $12/CWT What does it cost to leave the Facility Open or less than capacity? Saves A lot of FEED!

14. Reduce Selling Weight WeightFeed (total), LB Feed Savings from 270 lb 55-210532 210-22034 (566) 220-23035 (601) 230-24036 (637)-110 lb (15%) 240-25037 (674)-74 lb (10%) 250-26037 (711)-37 lb (5%) 260-27038 (749) 270-28039 (788)+39 lb 280-29040 (828)+79 lb

15. Evaluation of optimal market weights for different pigs The actual feed intake, BW, backfat and loin depth data were fitted to growth functions for the high lean gain pigs The average lean gain pigs were modeled to have greater rate of fat accretion and ADFI than the high lean gain pigs. The low lean gain pigs had the greatest fat accretion – and most rapid decrease in percent lean.

16. Evaluation of optimal market weights for pigs The growth, DFI, backfat and loin depth data was applied to three pork processor’s grids – Tyson’s, IPC and Farmland foods. Corn and soybean meal prices were originally set to 10 yr. average values – corn $2.50 /bushel, 48 % Soybean meal $190/ton and then increased by 20 % to 2.4 times the average values. Pigs were split sex – phase fed.

17. Predicted Feed Conversion for Three Genetic Populations of Barrows

19. Relationship of backfat to live weight in three genetic populations of gilts

20. Optimal Slaughter Weight with Increasing Feed Costs Corn and soybean meal prices were originally set to 10 yr. average values Corn $2.50 /bushel, 48% SBM $190/ton and then increased by 20 % to 2.4 times the average values.

21. Tyson –Gilts

22. Farmland -Gilts

23. Farmland -Barrows

24. Impact of Pen unloading Pigs per pen24 Pigs removed0612 Sq. Ft/pig7.259.6714.5 Start Wt., lb249250 Residual Wt., lb249244233 Avg. Final Wt., lb278280270 Removed Avg. wt0268267 Marginal ADG1.451.831.84 Marginal F:G4.243.763.63 Feed cost/30 lb of gain$12.72$11.28$10.89 Marginal $/pen$2,707$2,748$2,739 Boyd, 2008

25. Impact of Pen unloading Pigs per pen27 6 Pigs removed020 wks22 wks20 and 22 wk Sq. Ft/pig6.85 Total Wt Sold7598747776427374 Total Feed Used43663524 (19%)4077 (6.6%)3131 (28.3%) COV LW at 24 wks8.57.27.56.4 Sort Loss, $/pig3.492.522.691.13 Campbell, 2006

26. Antibiotic and Herd Health Programs Using the right level and antibiotic –Is it working for you –Can you use something else or none –Feed Savings relative to Increased Cost? Updating Herd Health –Reduce costs long term

27. Sow Productivity Weaned PSY $/sow2022.525 Gestation$197$9.85$8.76$7.88 Lactation$84$4.20$3.73$3.36 Total$281$14.05$12.49$11.24 Lb/sowLb/pig Total Feed2,1751099787

28. Feeding Cull Sows

29. 14 d28 d42 d56 d70 d ADFI, lb MWC18.079.5210.4310.8010.63 MWC211.5612.9413.7714.0713.82 MWC311.2612.1912.5912.4411.76 MWC410.1911.6812.6313.0412.90 ADG, lb MWC13.132.451.931.571.37 MWC24.483.382.441.671.05 MWC32.982.291.761.391.19 MWC43.092.221.510.960.57 G:F MWC10.370.270.190.140.12 MWC20.410.280.170.090.04 MWC30.260.180.130.10 MWC40.280.170.100.050.03

30. Feeding Cull Sows Feed costs = $0.09/lb and Fixed costs = $0.25/day Sow prices = $0.33, $0.36, $0.38, and $0.40, for respective MWC

31. Cull Sows and Paylean (21 d) Increased ADG (3.15 vs 2.65) Increased G:F (0.29 vs 0.25) No Diff in ADFI Decreased Fat Accretion (0.31 vs 0.41 in.) 10.5 lb more sow weight Is it cost Effective? Knauer et al., 2008

32. Economics of Swine Nutrition and Production Cost per ton of feed Cost per unit of lysine Cost per unit of digestible lysine Total feed cost per pig marketed Cost per lb of gain ROI per pig space per day Lots of variables that can affect profitability!

33. Questions?