Engormix
engormix
search
search
Login
We will be present at:
January 24, 2022 to January 27, 2022
Atlanta, Georgia, United States
Engormix
  /  
Animal Feed
  /  
Forums
  /  
Formulation and ingredients

As feed costs increase, what strategies are you using to offset the impact on profitability?

Published on: 01/26/2021
Author/s : David Nelson, Sales Manager at AlzChem

After several years of relatively low corn and soybean meal prices, recent increases have commercial nutritionists and livestock producers looking at various methods to offset the impact of rising feed prices. If finished product prices stay constant and you are getting full benefit from your least cost formulation software, what other strategies are available? At Alzchem we are seeing an increase...

View the full article
remove_red_eye 663 forum 9 bar_chart Statistics share print
Share :
close
Dave Albin, Ph.D. Dave Albin, Ph.D.
VP, Nutrition & Extrusion Technologies
January 26, 2021
Interesting. How does this work with higher-fat diets (more beta-oxidation vs. glucose-ATP)?
Reply
David Nelson David Nelson
AlzChem AlzChem
Trostberg, Traunstein, Germany
February 4, 2021
Dave Albin, Ph.D. Hi Dave, Interesting question...since Creamino increases muscle creatine levels allowing for direct replenishment of ADP to ATP I am not sure what effect a higher fat diet would have. Does a high fat diet have an influence on muscle glucose levels? Or would a low glucose diet lead to lower glucose levels in the muscle?
Reply
Ewa Sujka Ewa Sujka
Commercial Manager
LIPTOSA LIPTOSA
Madrid, Madrid, Spain
February 11, 2021

In the current raw material cost scenario a concept of feed efficiency is an interesting strategy. It is not only the cost of the feed formulae that matters but also how it will perform. The industry has a broad portfolio of additives focused on increasing bioavailability of fats, some aminoacids and proteins. Bioemulsifiers and aminoacids adjuvants can serve as interesting devices in this strategy.

Reply
David Nelson David Nelson
AlzChem AlzChem
Trostberg, Traunstein, Germany
February 11, 2021
Hi Ewa. Thank you for your comments and you are correct. As feed prices increase, now would be an excellent time to look at those additives that increase efficiency, ingredient bioavailability or have a sparing effect on costly ingredients such as energy or protein sources.
Reply
Muabecho idrisu Muabecho idrisu
February 15, 2021

Cost and performance of feed should be critically looked into in order to know which one really outweigh the other. I am saying this because when feed formula is offsetted because of price increase in raw materials the feed will end up losing its quality and performance.This poor feed performance will affect the farmer in question negatively.High feed performance does not much affect profitability and trying to offset it can be more dangerous in our poultry farming business.

Reply
Felix Klose Felix Klose
Sales Manager
AlzChem AlzChem
Trostberg, Traunstein, Germany
February 18, 2021
Muabecho idrisu You are absolutely right, that a careful assessment is required to determine perfomance or cost saving benefits. Our aim is to help in this assessment and bring our technical experience to the table and reduce the risks for the customers while increasing the benefits.
Reply
Mohammad Afrouziyeh Mohammad Afrouziyeh
PhD
February 15, 2021
Great topic! In addition to what people have talked about the possible strategies, I would like to add using appropriate feed formulation models to offset the effect of ingredients cost on profitability. It means that in addition to ingredients cost (mainly energy and protein cost), product price (income) should be allowed to play a role in the feed formula. This can happen by using non-linear programming models that incorporate product price in determining the economically optimum level of energy and nutrients in the diet.
I have explained the idea fully in the following links:
https://youtu.be/33sjsiy_6ck
https://youtu.be/oXQaMWv6OiY
Reply
David Nelson David Nelson
AlzChem AlzChem
Trostberg, Traunstein, Germany
February 19, 2021
Mohammad Afrouziyeh Excellent point. We are seeing evidence of this now in the U.S. market. As prices for breast meat have fallen, we are seeing less focus or emphasis on breast meat yield when formulating diets or considering feed additives.
Reply
Mohammad Afrouziyeh Mohammad Afrouziyeh
PhD
February 19, 2021
David Nelson Thank you so much for your comment. That's where yield prediction models (breast, leg, wing) come to play in evaluating sample partial budget for either whole or cut-up chicken. These models can be also used to evaluate feed additives from an economical standpoint as you mentioned.
Reply
1
print
(663)
(9)
Engormix reserves the right to delete and/or modify comments. See more details
Post a comment
Create new discussion :
If this discussion does not cover topics of interest or raises new questions, you can create another discussion.
Create new discussion
Consult a professional in private:
If you have a specific problem you can perform a consultation privately to a professional in our community.
Dave Albin, Ph.D.
Dave Albin, Ph.D.
VP, Nutrition & Extrusion Technologies
  West Des Moines, Iowa, United States
Contact us
See other professionals
Products
(1)
Creamino® is the basis for Creatine, which is the “battery pack&r...
See more