Document

Report
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
National Baconer Price
300
290
280
c/kg HSCW
270
260
250
240
230
220
210
200
Ja
n
b
Fe
ar
M
Ap
r
ay
M
2002
n
Ju
2003
l
Ju
Au
2004
g
p
Se
2005
t
Oc
2006
v
No
c
De
Profit over 14 years ($/sow) based
on APL Pig stats and Pig Annual
Profit
700
600
500
400
200
Profit
100
-200
-300
-400
Year
20
05
/2
00
6
20
03
/2
00
4
20
04
/2
00
5
20
01
/2
00
2
20
02
/2
00
3
00
/0
1
99
/0
0
98
/9
9
97
/9
8
96
/9
7
95
/9
6
94
/9
5
93
/9
4
-100
92
/9
3
0
91
/9
2
Profit ($/sow)
300
Comparative costs (Euro/kg carcass
weight)
Country
Brazil
USA
Canada
Cost of production (E/kg)
.99
1.13
1.16
Poland
Netherlands
China
1.18
1.30
1.35
Australia
1.36
Relative business
indicators
Business
indicator
USA
Canada
Brazil
COP
(A$/kg)
HFC- CW
1.48
1.55
1.21
2.20
3.68
3.80
3.75
4.20
Carcass
1700
Wt./sow/yr
(kg)
1650
1550
1450
210
220
270
Feed
($/tonne)
200
Australia
Core program areas
1.
2.
3.
4.
More reliable and lower cost
energy and protein supply
Herd feed conversion efficiency
Functional pork products
Education and training
A shared vision…
Core Participants
Supporting Participants
University of Sydney
Grainsearch Pty Ltd
WAAPC – Pork Producers Committee
Bartlett Grains Pty Ltd
Australasian Pig
Science Association
Potential improvement in
profit and flexibility
Current
Targets
Price ($/kg)
2.4
2.4
HFC (Carcass)
4.2
3.6
Feed ($/kg)
.27
.25
Total feed($/kg)
1.13
.90
Other ($/kg)
0.95
.82
COP ($/kg cwt)
2.08
1.72
Pigs /sow/yr
19
22
Weight (kg)
75
76
Profit/sow ($/yr)
456
1140
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 1999.
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.
1000
950
900
850
Mixed sex
800
750
700
12
12.8
13.6
14.4
15.2
Effects of dietary DE (MJ/kg) on
carcass weight (kg)
81
80
79
78
77
76
Mixed sex
75
74
73
72
71
12
12.8
13.6
14.4
15.2
Effects of dietary DE on feed:
gain
3.10
3.00
2.90
2.80
2.70
Mixed sex
2.60
2.50
2.40
2.30
2.20
12
12.8
13.6
14.4
15.2
Effects of dietary DE on carcass
feed: gain
3.60
3.40
3.20
3.00
Mixed sex
2.80
2.60
2.40
2.20
12
12.8
13.6
14.4
15.2
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
Genetics 1 and 2
4.00
3.50
3.00
feed:gain
2.50
2.00
1.50
1.00
0.50
0.00
0
50
100
150
Weight LB
200
250
300
Growth rate (LB/d) and weight (LB)
Growth artes of gilts from two genetic lines
2.50
2.30
2.10
Daily gain (LB)
1.90
1.70
1.50
1.30
1.10
0.90
0.70
0.50
0.00
50.00
100.00
150.00
Weight (LB)
200.00
250.00
300.00
Effects of genetics available today
Performance
(20-100 kg)
Genetics 1
Genetics 2
Feed:gain
2.09
(31.4 MJ DE/kg)
2.51
(37.7 MJ/kg)
Feed (kg/pig)
167
201
Growth rate (g/d)
955
841
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
Control
Growth
rate(g/d)
Feed usage
(kg/pig)
MJ/kg gain
Paylean
955
1024
167
155
31.4
28.1
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.

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