Optimization software program – rational feed cost management

The economic situation in the poultry market in Poland often forces farmers to consider which path they should follow. There are always several solutions to choose from. The common approaches include switching to another farming sector, reducing or suspending production, and, in extreme situations, even depopulating the flock. Yet I believe it is always worthwhile to ponder over the topic of optimization of costs and their re-calculation in respect of a particular flock.

Farming is BUSSINESS and like any other enterprise, it should be profitable. An important part of running a company is having control over the balance of profits and losses, with particular emphasis on the continuous search for savings. The areas that we should keep very close tabs on while analyzing our farming business include:   

The answer is obvious. Looking for savings in this area will bring the most tangible result. We must remember, however, that reducing the costs of feeding our flock is a very delicate matter. Any inadequate change of balance and quality of feed will be immediately reflected in our production, i.e. the weight gain and feed consumption.                                                                            

So how can we reduce feeding costs in a safe way? The answer is a suitable optimization program based on an algorithm – the least cost optimization.

At the moment, there are many programs for balancing feed doses available in Poland, which unfortunately are outrageously expensive. We are confronted with the price straight away (unit price) or during the use due to the so-called hidden costs that we have to incur to be able to benefit from 100% of the possibilities offered by the program (package price).

There are also programs that are obsolete and, in fact, contain a number of flaws. While using the currently available programs, we can come across several significant obstacles: the program is available only in foreign languages, it is not very intuitive, and it was designed for large, industrial feed manufacturing plants, which means that it is not particularly suited for a farm. Let us not forget that the users are not provided with an opportunity to test the program prior to making the purchase.

In summary, while choosing the right program we must remember the most important thing, namely that immediately after the installation, we should be able to compose our own feed, premixture, or concentrate at once (in the IT language, this is commonly referred to as plug-and-play).

Let us now consider the important aspects of composing feed for livestock independently on our own farm.  At first, it might seem like a simple task. After all, various folders, labels, and leaflets often contain formulation suggestions. They are exactly that – suggestions and examples, very schematic and general in nature. The feed should be based on what is available on the farm and what can be currently purchased at attractive prices. In addition, the suggested formulations featured in folders do not take into account the parameters of own raw materials (own cereals). For example, the content of protein in wheat can vary depending on the crop, fertilization methods, soil, climate, and many other factors. The amount of protein in wheat can range from 7% up to 16%. It makes a dramatic difference in terms of optimization and it undoubtedly has an impact on the mixture cost and, consequently, on the savings we make.

We can take into account all of the above elements only by using a computer program. Of course, since purchasing a program is an investment, we want to see a return on it as quickly as possible. The profitability of this type of tool depends on its price and a well-composed formulation.

So what does a well-composed formulation mean? It is a formulation that has an optimal composition and takes into account the price of raw materials that can be purchased at the time. The program should inform us about the maximum price of a particular raw material that allows it to be included in the formulation, as well as about the price limit which, if exceeded, makes the formulation no longer profitable.

It is important for the optimization program to take into account the balance of ingredients (amino acids, vitamins), in line with the latest nutrition standards and with the minimum and maximum options. We should not forget about the correct proportions of ingredients. One of the examples is the calcium-to-phosphorus ratio – an extremely important component that, unfortunately, tends to be underestimated or not taken into account at all. We often exceed the appropriate amounts of ingredients, which is tantamount to wasting money. Premixture manufacturers often compete with each other by increasing the levels of certain amino acids or vitamins purely for marketing purposes. As a result, we pay for a product that is not 100% digestible by our animals.

Another issue worth mentioning, in addition to the generation of meaningless costs, is environmental protection. Exceeding the limit values of certain elements, i.e. ingredients, is harmful to the environment. I am talking about nitrogen, phosphorus, and greenhouse gases. It is essential for our optimization to be safe not only for our animals but also for the environment.

We can always seek the assistance of a nutritionist employed by the company that provides us with premixtures or concentrates. They are able to create formulations tailored to our needs. In principle, this appears to be a good solution, but we all know that, for various reasons, such assistance may not be available right away and often the composition of the feed must be modified immediately.

An example might be our response to the color of yolks. Any delay in such a delicate matter can be costly, but in fact, we are able to do it almost immediately. All we have to do is balance the premixture with suitable dyes, taking into account our stock of corn and our ability to dose it appropriately.

Another important aspect is the fact that our own formulation will be independent, and balanced using raw materials selected by us and supplied by the manufacturer of our choice. By using a good optimization program, we should be able to easily compose our own premixture that we will later use to optimize feed for our flock.

Good optimization tools, such as the least cost optimization programs (optimization of the lowest price), allow the users to enter the prices of each raw material. Taking into account the contemporary price fluctuations, the costs of raw materials change virtually every day. The feed that we optimized yesterday may no longer be the cheapest option today. Therefore, only the ability to independently update the formulation on a daily basis, taking into account the raw material’s price on the given day, can have a real impact on the savings achieved on each farm.

The great advantage of feed optimization programs is the utilization of sophisticated regression equations that allow the program to automatically perform instant analyses.  Upon each change in any ingredient of a particular raw material (e.g. the reduction of the amount of protein), the program will adapt to the new raw material and re-calculate the other ingredients. This feature is very important and helpful. The ingredients of raw materials are interrelated. For example, lowering the content of protein in wheat by a few percent will automatically change the energy of the entire raw material, as well as the level of amino acids. The programs that do not offer this functionality as a standard feature cannot fully meet the farmer’s needs.

A good optimization program should be versatile. What does it mean? First of all, it should allow us to create formulations:

Furthermore, while choosing a feed optimization program, we should not underestimate the aesthetic side of it. If the program looks elegant and clear, it makes work easier and more pleasant.

The ability to edit and use previously created formulations is another feature that enhances the value of the tool. The final report must be clear, transparent, and editable – it is the culmination of our work. Therefore, the users should be able to save their formulations as ready-made reports in any format and print them out easily.

The last but not the least important aspect is that a good optimization program should be accompanied by a local HELPDESK in the form of a phone number or an e-mail address to an assistant. The support for first-time users of the optimization tool or for those who are not highly computer literate is a very important sign of the professional approach of the program’s manufacturer towards their customers.