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Better understand growth to reduce feed costs and boost margins

Better understand growth to reduce feed costs and boost margins

Of the factors that affect pig finishing unit profitability, it’s the combination of feed costs, feed conversion ratio (FCR), growth rate and carcass value that together have one of the biggest impacts on herd margins. And the two most important measures when looking to evaluate or improve feeding systems are feed cost per kg of liveweight gain (p/kg LWG) and margin over feed (MOF).

“Keeping feed costs under control should be a top priority on any unit, with over-expenditure on unnecessary nutrients or feed processing – such as energy demanding, large diameter rolls – both areas where cost reductions may be possible,” states ABN pig nutritionist Dr Steve Jagger. “But focusing solely on feed costs per tonne risks damaging performance or missing contract criteria for the sake of short term savings, and that’s likely to cost much more in the long run.

“In contrast, p/kg LWG allows comparisons that will take into account not just cost, but also performance, whilst MOF will include any impact on weight gain.”

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