Barriers to the Implementation of Maximum Profit and Stochastic Models in the Australian Poultry Industry

Max-profit and stochastic approaches use production, market and nutrient variability data to formulate diets by more economically sustainable means; giving increased flexibility, opportunity and capacity for the Australian poultry industry to cope and thrive under market challenges (Moss et al. 2020; Sterling et al., 2005). However, in order for producers to accurately formulate diets using max-profit and stochastic techniques, it is likely that some data is presently lacking and there may be some barriers to adoption.

Therefore, this project was conducted to i) determine the industry’s present views of max-profit and stochastic feed formulation and the barriers to implementing these techniques, ii) review the data and modelling tools currently available, and iii) provide recommendations for adoption of max-profit and stochastic feed formulation of Australian layer diets.

A survey of the Australian poultry industry was completed to identify barriers to implementing these alternative feed formulation techniques and potential solutions to these barriers. This survey was approved by the Human Research Ethics Committee within the University of New England (HE21-122) and the online survey was developed and distributed via Survey Monkey Inc (©2021). The survey was distributed via a link given in various Australian poultry newspapers, newsletters and industry webinars to reach many different sectors within the Australian poultry industry. Responses were anonymous and collected between June and August 2021. A total of 32 responses were collected, made up of 17 nutritionists, 4 feed manufacturers, 5 producers and 6 technical personnel.

The survey revealed interest and need to implement stochastic and max profit feed formulation techniques. Stochastic techniques may be particularly useful to manage risk where NIR is not used to analyse ingredients prior to feed formulation. When asked if NIR is used, 40% of respondents in the layer industry said yes, in comparison to 86% of respondents in the broiler industry. Currently, 17% of nutritionists use stochastic feed formulation and 38% used max-profit feed formulation. Barriers to the use of stochastic and max-profit feed formulation included a requirement of better software to assist nutritionists in using these feed formulation techniques, improved data collection, further training, and restriction on nutritionists via key performance indicators to only minimise diet cost.

A table of feed formulation tools with additional stochastic, max profit, or other alternative feed formulation strategies was compiled. While there are quite a few listed programs, many are Excel based and may not still be compatible with modern versions of Excel. Additionally, none of the listed software combines stochastic and max profit feed formulation within the one program.

While there are barriers to the implementation of max profit and stochastic approaches, this project also identifies many opportunities to be gained in these areas to reduce the variability of the nutrient content of diets, improve tools to inform decision making and enhance the profitability and sustainability of Australian poultry industry.

ACKNOWLEDGEMENTS: The authors would like to acknowledge and thank Australian Eggs for funding this project and for their guidance, encouragement and support.