1. Chad Hagen, PhD

2. Source: Agristats 2011

3.  What is Best Cost Nutrition?  Importance of Feed Conversion  Importance of Throughput  Herd Health Effects  Genetic Effects  Feed Processing Effects  Feed Additives  Diet Design  Right Feed/Right Time  Risk Management

4.  Best Cost ≠ Cheapest Diet  Best Cost ≠ Lowest Cost/kg Gain  Best Cost ≠ Highest Margin Over Feed Cost  Best Cost = Nutrition Solution that Maximizes Profit

5.  Feed Conversion Ratio = Feed/Gain  Measure of efficiency of feed utilization  It is common to improve F/G while making feed cost worse  F/G improvements must be cost effective  Interpreting F/G results is not always clear cut

6. Group12 Weight In, lbs2620 Weight Out, lbs123120 Mortality, %4.93.7 ADG, lbs/day0.85 F/G2.842.86 Gaines, 2011

7. Group12 Weight In, lbs2620 Weight Out, lbs123120 Mortality, %4.93.7 ADG, lbs/day0.85 F/G2.662.80 Gaines, 2011

8.  Best Cost nutrition in the sow herd is affected not only by F/G and feed cost, but also productivity

9.  Sow herd productivity (Pigs/Sow/Year)  Pigs weaned/litter  Born alive  Pre-weaning mortality  Litters/sow/year  Farrowing rate  Non-productive days  Sow herd feed cost  Sow herd F/G  Sow diet costs

10.  F/G is a measure of efficiency only  Cost/kg gain is a measure of efficiency only  Profitability is driven by efficiency AND throughput  Key is to optimize throughput at the lowest possible diet cost

11.  When examining whole herd feed efficiency the productivity of the sow herd directly determines the number of pigs that sow feed use and costs can be spread over  Whole herd feed efficiency for the sow can be measured using sow feed per pig marketed  Common practice for sow farms to measure sow feed per year or sow feed per weaned pig produced  Alternatively can measure sow feed per unit of market weight produced

12.  Mating too soon adversely affects gilt performance  Waiting to mate is costly with high feed costs  Optimum timing of mating maximizes throughput at the best cost

13.  Best Cost nutrition is affected not only by F/G and feed cost, but also by throughput (ADG, livability)

14.  Depends on availability of space in a system  Space short = pigs pushed out by the next group resulting in market weight below optimum  Space long = adequate space to achieve optimum market weight  Technologies that increase ADG have more value in space short situations

15.  Go to Excel

16.  Direct Effect of Mortality  Dead pigs that eat feed but do not produce weight gain  Growth and Performance Effects  Impact on affected survivors  Chronic vs. acute

17.  Affects feed intake Reduced ADG  Lowers lysine requirement  Affects efficiency of gain  Mediated through changing composition of gain – reducing protein deposition in relation to lipid  Lean about 75% water  Lean more efficient to deposit than lipid  Maintenance requirement increased relative to overall requirements Dritz, 2011

18.  Viral and Mycoplasma  PRRS  PCV-2  SIV  H1N1  H3N2  Mycoplasma Hyopneumonia  Environmental  Lawsonia Intracellularis  Salmonella  Emerging/Reemerging  Swine Dysentary  TGE Pathogens that have placental transfer, poorly protective passive immunity, or can live for extended periods of time in the environment. Dritz, 2011

19. PassFailP-Value PRRS+, %48730.001 ADG,g8318040.001 F/G2.882.970.001 Mortality, %4.85.50.11 Top Markets, %91.691.30.59 O.C. Total, $/pig$3.51$7.410.02 Difference, $/pig$3.90 Dritz, 2011

20.  Productivity and feed cost are significantly affected by genetics, both between genetic lines and within genetic lines

21.  Feed processing techniques have major effects on F/G, feed cost and animal performance

22.  Pelleted Feeds  Improve feed conversion  Improve ADG  Increase mortality  Increase feed processing cost  Improve profitability???

23.  Mortality  Genotype  Feed interruptions  Health and bio-security  Bottom line

24.  System-specific decision  Ingredient cost  Mortality risk  Genotype  Herd health status  Location disease pressure  If you are going to pellet, make good ones

25. Market Price, $/tonValue, $/ton Corn$121 Soybean Meal$297 Wheat Midds$80$95 Pork Meat & Bone Meal$410$371 Dried Bakery Product$126$133 DDGS$106$140 - 220 Shadow Prices

26.  Use will typically reduce diet cost  Variable nutrient content  Unpredictable animal performance  Limits use and savings  Knowledge of nutrient content is key  Consistent performance  Minimize feed costs

28.  Top 50% vs Bottom 50%  $318 vs $268 / ton DDGS  20% Inclusion = $ 2.97 / pig  30% Inclusion = $ 4.46/ pig  40% Inclusion = $ 5.94 / pig  Top 25% vs Bottom 25%  $334 vs $257 / ton DDGS  20% Inclusion = $ 4.57 / pig  30% Inclusion = $ 6.86 / pig  40% Inclusion = $ 9.14 / pig ® *Cost per pig is based on 100 kg gain and 2.7 Feed Conversion

29.  DDGS are a very good high quality feed ingredient for both pigs, poultry, and ruminants.  Variation is wide between plants, but understanding difference can be attained.  Changes in Ethanol plants will continue to drive variation of nutrient values.  Proper information can allow for accurate use and possible increased inclusion rates.

30.  Feed additives can be valuable tools in increasing productivity and reducing feed cost

31.  Widely used in U.S. swine diets  Releases phytate-bound phosphorus  Also releases energy and may improve amino acid digestibility  Not as valuable in high DDGS diets  Phosphorus bio-availability in DDGS is good  Takes knowledge to use it properly  Seeing soft bones in many U.S. herds

32.  Not widely used in U.S. diets  Ingredients used in U.S. not conducive NSP enzyme effectiveness  Response has been variable  Still promoted by many feed companies  Mannanase used in some systems to improve soybean meal digestibility

33.  Heat stress significantly reduced ADG (P<.05)  Stafac improved ADG in both, thermoneutral and heat stress environments (P<.10) Within each period, treatment values with unlike superscripts differ at P<0.05

34.  Heat stress significantly increased F/G (P<.05) in both treatment groups  Stafac significantly improved F/G (P<.05) in both environments, dramatically more in the heat stress environment Within each period, treatment values with unlike superscripts differ at P<0.05

35.  With recent volatility in commodity markets, risk management has become an important task for profitable swine producers

36.  Feed cost is 70% of total cost of production  Successful producers will carefully manage all aspects of feeding and nutrition to maximize profitability  This is a complex task!