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Improving efficiency and cost of production

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).

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Improving efficiency and cost of production

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  1. Improving efficiency and cost of production

  2. The Profit Equation • PROFIT = PRICE – COP ((FeedPrice x HFC ) +(Other costs) ) x Volume (pigs sold x weight)

  3. Pig Price

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

  5. Comparative costs (Euro/kg carcass weight)

  6. Relative business indicators

  7. Core program areas • More reliable and lower cost energy and protein supply • Herd feed conversion efficiency • Functional pork products • Education and training

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

  9. Potential improvement in profit and flexibility

  10. 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.

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

  12. 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

  13. 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.

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

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

  16. Effects of dietary DE on feed: gain

  17. Effects of dietary DE on carcass feed: gain

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

  19. The feed:gain of gilts from two genetic lines

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

  21. Effects of genetics available today

  22. Effects of 5ppm Paylean for last 21 days

  23. 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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