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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.