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Focus on feed value, not price per tonne, to maximise margins

Focus on feed value, not price per tonne, to maximise margins

Despite high feed prices and continued pressures within the free range egg market, ABN nutritionist John Round is urging producers not to put too much focus on price per tonne in the battle to reduce feed costs and maintain margins.

“Switching to a lower specification feed to cut costs might be tempting, but too often the cost savings are outweighed by reduced performance,” he explains. “In many situations, a higher quality feed that costs more per tonne will actually increase margins and reduce overall feed costs per unit of output.”

Efficiency is the key when feed prices are high, and according to Mr Round, it’s how cost-effectively a particular feed supports a certain level of production that determines its true value. Higher quality feeds typically result in either a higher level of production or a better feed conversion efficiency (the same level of output for less feed), or both.

“Whilst there’s no point buying feed which is over-specified for its intended use, don’t be afraid to continue investing in higher quality feeds if the payback justifies the extra cost,” he continues. “It’s important to focus on performance, as the effect a feed has on egg production, egg weight and grading, as well as on feed intake and feed conversion efficiency, is just as important as what it costs.”