2013 Iowa Pork Regional Conferences

Welcome

sponsored by

Iowa Pork Producers Association

Iowa Pork Industry Center

Iowa State University

Sheldon, Iowa

Uncharted Territory

• Pipeline corn supply – local shortages and

abnormal basis

• Subsoil moisture

• Record high corn price

• Long tail feed prices after drought

Opportunities

• Markets can change – are you

prepared?

• Two big possibilities: • Short crop long tale – business almost

as normal

• Another short crop- have you thought

about a plan?

2013 Iowa Pork Regional

Conferences

Stretching Corn Needs for Pigs

& Improving

Feed Utilization through

Management and Technology

Diet Relation to Organic Fertilizer (Manure)

Composition

Possible Situation:

Below Trend Line Yield this

Summer

• May not be a problem if enough acres planted

• Will be a problem is feed demand exceeds growing crop supply

– Feed cost skyrocket

– Market price depression, especially cull sow

– Future profit potentially big as crop supply eventually buries demand

Options for the Situation

that Feed Demand is more

than the Growing Crop can

Supply

• Quit, but will be expensive without a plan

• Do nothing different – leave risk management

in place

• Have a plan in place to reduce your corn

usage –less corn to buy or more corn to sell

What would be in a plan?

• Stretching the feed supply – Culling, reducing numbers or weight

• Increasing the utilization of feed and or decrease cost of gain – FE improvement, alternative feeds, diet

formulation

• Change from a maximum throughput financial mindset, to a reduced cash cost per pound gain mindset.

• (only applicable when market price is less than cash expenses)

How to Stretch the Grain

Supply in the Sow Herd

Develop your specific plan for a changes in

production &/or management: (Remember that if cost becomes larger than market price, strategic

reduction in numbers, weight and feed use/cost is now the goal)

• Herd health

• Batch farrow transition

• Condition score adjustment

• Weaning age shift

Pig weaning weight

11 12 13 14

Total annual weaned pig weight (lb)

286 312 338 364

lb feed/lb pig

7.35 6.73 6.22 5.78

Sow Feed Disappearance and Pig Weight Weaned Determine Feed to Weaned Pig Weight Ratio (Assumption:26 pigs/sow/year and 81 lb feed/pig)

Fixed pig flow (discussion)

• Advantages

– generally max facility utilization, more lb

pork per sq ft of floor space, more lb sold.

– More profit during normal margin times.

– Spreads out cost for high fixed cost

operations

Fixed pig flows (cont.)

• Disadvantages:

– Rate of gain is vital, lower end weight reduces income, more culls

– If time is tight & gains off = more cull pigs

– If over stocked --- potential for stress = increasing likely disease, increased health cost & death loss

– Reduced weights, marketable hogs etc

During low margin times: Flexible, more space available flow could enable some cost saving options

If a time comes when cash cost

exceeds market price, then

throughput is useless, concentrate

on cost reduction

A $3/head 2% cost reduction value?

• At $150/hd Market

• 900 hd profit $2700

• At $160/hd market

• 900 hd profit $11,700

• At $170/hd market

• 900 hd profit $20,700

• At $180/hd market

• 900 hd profit $29,700

• 1000 hd $0 profit

• 1000 hd $10,000 profit

• 1000 hd $20,000 profit

• 1000 hd $30,000 profit

Produce 1000 pigs at $150 cost/hd OR Produce 900 at $147

Other Breeding Herd Streamlining

Ideas

• Culling increase including low

productivity index sows

– Recycle sows also have lower productivity

– Detect and cull open sows ASAP

• Understand seasonal profitability cycles

and cull based on potential profit

probability of offspring

Barrows and gilts (IA-So MN) seasonal

price index

Average profit per head Farrow to Finish ISU Estimated Returns, 2003 to 2012

Average profit = $3.61 /hd

Bred Marketed

Apr Jan ($ 4.82)

May Feb $ 1.19

Jun Mar ($ 0.28)

Jul Apr $ 4.12

Dec Sep $ 1.93

Jan Oct ($ 3.05)

Feb Nov ($10.56)

Mar Dec ($ 8.97)

= Avg. 8 mo ($ 2.55)/hd profit

Bred Marketed

Aug May $16.95

Sep Jun $18.32

Oct Jul $15.03

Nov Aug $13.45

May thru Aug =

$15.94 /hd profit

ISU Estimated Returns

Farrow to Finish, 2002-2012

Average profit per head/month

May June July Aug Avg. Profit

$16.95 $18.32 $15.03 $13.45 $15.94

Nov Dec Jan Avg. Profit

- $10.65 - $ 8.97 - $ 4.82 - $8.12

If 9 pigs / litter

marketed

$216.47 $143.43 $-73.04

Bred

July Aug Sept Oct

Bred

Jan Feb Mar

How to Stretch the Grain

Supply for Wean to Finish

• Culling to reduce numbers

• Sell lighter weight (keeping all four factors influencing optimum weight in mind)

• Higher level management – use of records to track weight and make cost effective

decisions

– Attention to details

• Alternative feeds/diet formulation

• Increasing the utilization of feed and or decrease cost of gain

–Feed efficiency improvement

Wean-Finish Production

Culling practices (waste)

@ placement

@ day 56 or entry into finisher

@ day 126 (70 d finisher)

@ first pull – not only biggest but also

non-marketable pigs

Non-marketable pigs consume feed

Four Main Factors that

Influence the Target Sale Wt.

• Margin – return over variable (feed) cost

• Price change magnitude and direction with

seasonal probabilities

• Ability to estimate weight of market pigs

• Packer grid

– Sort loss

– Grade premium (no longer an issue at select

plants)

Strategies for Finishing Hogs

Periodically do a market weight reduction

analysis to make sure gain = return over cost

Example: Should you sell a 265 or 275 lb hog?

o If feed cost = $.20/lb (feed conv. = 3.80) then

o 10 lb live wt gain costs $7.60 in feed (38 lb x $.20)

o So carcass wt gain = 7.5 lb (10 x 75% yield)

o Breakeven for the feed = $101.00/cwt

So what is your cost of feed and sell price?

Barrows and gilts (IA-So MN)

seasonal price index

13% UP

4% UP

5% UP 6% down

5% Down

8% Down

Use formula from Ag

decision maker B2-14

• To estimate the future month price based

on the current month price:

• Current price/current month Index * Future

Month Index Price = Price Forecast

Packer Grid

51% 52% 53% 54% 55% 56%

$4.00 $5.50 $7.00 $7.00 $7.50

Genetics makes a huge difference in target market weight and feeding strategy

If you have never plotted out your kill sheets with weight and lean premium, we can help you-- contact your ISU Swine Field Specialist

Packer Grid – sort loss

281-290

291-300 -$1.00

301-310 -$2.00

311-320 -$3.50

321-330 -$5.25

331-340 -$6.75

340 & up -$8.00

181-190 -$13.61

191-200 -$9.52

201-210 -$6.76

211-220 -$4.05

220-230 -$1.35

231-240

241-250

251-260

261-280

1. The Eye of the Sorter

• Scales to weigh the pigs?

• Average weight may not be helpful

– The average is a perfect 270, right in the middle

of the grid – sort loss can still be extreme,

– for example if half the pigs weigh 220 and the

other half 320.

• If you are consistently loading small pigs in

the first loads with big pigs left in the pens

you should change or train the person in

charge of pig sorting.

ISU Extension & Outreach Feed Budget Est 1st Pull :

Prepared for: Level Up Pork

Location: Nashau Site 1 Gain Adjustment 103%

Start Date: 4/1/12 Feed Intake Adjustment 90%

Pigs / group : 1,000 ADG 1.55

ADFI 3.90

Nursery, Finisher or Wean-Finish programs FG 2.51

In Wt Out Wt Ration ID

feed

budget lb

/ pig

Days Tons

Days

on

Feed

12 15 Pellets 3.3 6 2 4/6/12 Fri 6

15 25 S-1 13.3 15 7 4/21/12 Sat 21

25 35 S-2 14.0 10 7 5/1/12 Tue 31

35 50 S-3 25.1 13 13 5/14/12 Mon 44

50 80 F-1 63.3 23 32 6/6/12 Wed 67

80 120 F-2 96.5 25 48 7/1/12 Sun 92

120 160 F-3 100.3 21 50 7/22/12 Sun 113

160 200 F-4 103.5 19 52 8/10/12 Fri 132

200 240 F-5 114.5 19 57 8/29/12 Wed 151

240 280 F-6 138.0 22 69 9/20/12 Thu 172

Fed by

8/30/12

Use records to set the date of the first pull to save feed.

How much corn is needed

How sell weight affects needs 12 month period, 13,000 pigs/yr 12 - ?? lb

Corn locked in as each group is placed

Sell wt of 280 lb bushels

250 84% (14,289)

260 89% (9,588)

270 95% (4,826)

280 100% 90,054

290 105% 4,886

300 111% 9,922

pigs placed Nov 1, 2012 through Oct 31, 2013

Alternative feeding strategies

During low margin periods of time, cost of gain

becomes more important than, throughput or

growth rate until profit returns to the industry.

Look for alternative feedstuffs and cost effective

substitutions for grain and soybean meal

Shadow pricing vs stretching physical ownership

– Excel spreadsheet

Alternative feeding programs

• Source

• Availability – amounts and time

• Storage: mill or on-farm

– is there room

– What will be replace – opportunity costs

• Lowering nutrient density – not trying to maximize

performance

• But understanding how this affects yield and quality

Reducing Oil content in DDGS DDGS Modern Low oil

Low oil

adj Diet

C Protein, % 26 27 27

ME, kcal/lb 1500 1455 1455

Lysine, % 0.75 0.65 0.65

Fat, % 9.5 3.5 3.5

Corn 1,265 1,265 1,248

SBM (46%) 215 215 232

DDGS 461 461 461

ME, Mcal 233 232 231

Lysine, lb 5.79 5.63 5.80

Fat, lb 7.30 4.89 4.86

Amount consumed from 20 - 270 lb

Nutrient profile

Equate lb consumed to lb / mixed ton of feed

Understand Expectations may Need

to Change

– Gains, days on feeds

– feed efficiency

– carcass yields

• Morbidity and/or mortality

• Frequent changes in

dietary makeup

• Changes in growth performance

Weanling pigs – the basics

Anything and Everything to keep pigs healthy

Special attention to environment to keep pigs

healthy - warm, draft free,

Keep in the thermo neutral zone, all phases

Fresh feed

Fresh clean water

Pigs don’t eat they can’t gain

Website: www.swinefeedefficiency.com/index.html

• Influence of Particle Size

• Influence of Pelleting

• Influence of Temperature

• Effect of Dietary Energy

on Feed Efficiency

• Influence of Ractopamine

• Impact of Feeder Design

and Management

• Particle Size Testing

Methodology

• Not Always Linked to Net

Income

• Genetic Impact

• Decision Tree

• Influence of Market Weight

• Influence of Amino Acids

Publications

Particle Size

Processing of whole grains

Improve nutrient digestibility

Rough rule of thumb: 1.2% from 100

micron reduction

Recent studies suggest lower micron size

may be advantageous

Particle Size

While F/G continues to improve, particle size <600

microns may:

Increased energy of grinding or rolling

Feed bridging in storage bins and/or feeders

May increased incidence of ulcers in finishing

pigs

Low particle size feed dust

Pelleting Feeds

Advantages: 4-8% improvement FG

Feeds with particle size (<

500 microns)

Fibrous/low density

ingredients

Improved flow ability

High $ starter rations

$450/ton starter x 6%

improved FG

= $27/ton savings

Disadvantages:

Long term capital expenditure

Additional $/ton pelleting costs

Reduced tons/hour output

Pellet Quality is important

if poor quality

o 40 to 60% fines reported same

FG as meal

o Frequent feeder adjustments

Effective Temperature

30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

Effe

ctiv

e t

em

pe

ratu

re,

oF

Body weight, lb

Upper Critical Limit

Lower Critical Limit

Thermoneutral Zone

Cold Stress

Heat Stress

Effective Temperature = . Air temperature adjusted for

relative humidity and air movement

Thermal Neutral Zone, Upper &

Lower Critical Temperatures

0

2

4

6

8

10

12

14

16

18

Mcal intake

Feed/gain

ADG, lbs

TNZ UCT LCT

Cold Stress Heat Stress

Winter Summer

Feeders

Think about Feeders

If feeders are old replace them. Feed savings will

recoup cost very quickly

• Pigs under 40 lb – only dry feed

– Wastage

– Potential for molds

– Pigs don’t start well

• No difference in feed efficiency between wet or dry

feed for grow-finish pigs

• Wet feeders waste less water

Think about Feeders

Feeder Design

Pigs per feeder hole (11-12 dry; 15 wet/dry feeder);

Does not indicate stocking density

Ease of adjustment – inside and at the top

Ease of cleaning

Durability

Quality of feeding space

• can the pig eat comfortably

• will the pig be easily displaced by another pig?

0

5

10

15

20

25

30

35

40

Back Eat Root Fight Step

Perc

en

tatg

e o

f T

ime

Pig Eating Behaviors

Pig Behavior Associated with Feed Wastage, Gonyou 1998

90 lb pig

180 lb pig

Feed wastage was 4.4% (90 lb pigs) vs 2.4% (180 lb pigs)

Causes for Feed Wastage

Quality

of

Feeder

Space 14”

≈40O Chin angle

10” - is the pigs spatial requirements dictate the width and depth of the feeding space

Adjusting slot opening – Pan Coverage

Dry Feeder opening/adjustment

• Pigs < 150 lb 50 to 60% coverage

• Pigs > 150 lb • 30 to 50% coverage

15%

55%

80%

Improving Feed Efficiency

Benchmark Finisher example: – 60 to 270 lbs. ADG 1.84 F/G 2.85

Corn $7.00 392 $49.00

DDGS $282.00 140 $19.74

SBM 48 $400.00 58 $11.60

Pmx w/phy $0.31 11.9 $ 3.69

Lysine HCL $1.40 1.1 $41.61

Potential Benefit: (Feed=Expense) Item % improve Feed, lbs/hd $/hd

• Particle Size (200) 2.5% 15 $2.15

• Pelleting 5.0% 30 $4.29

• Feed Wastage 4.0% 24 $3.43

Feed Cost/ton: $284/ton Feed: 603.5 lbs./hd Feed $: $85.64/hd

Ractopamine (Paylean®)

Disclaimer: this information is provided for awareness, not a general recommendation for the product.

Each operation is unique regarding use:

– Seasonal profit potential

– pig flow (Space limited, high margin – need more wt Vs flexible space, low margin period)

– uniformity of pig entry and market weights

– percentage of saleable pigs

– logistics of feed deliveries and pig marketing

– feed cost

– genetics, health

– packer grid lean premiums or lack of

Economic Analysis

of Swine Diet Cost

Vs Manure Value

Dave Stender ISU Swine Field Specialist

712-261-0225 or dstender@iastate.edu

Economic Analysis of Swine Diet Cost Vs Manure Value

• Construction of a barn – manure’s worth

• Not all manure is equal

o Diet formulation impacts manure

nutrient value

o Full $ value (NPK) manure Vs $ nitrogen

o Water management/wastage

o Measuring manure yield per pig using a

manure test

National Center for Manure

and Animal Waste

Management

White paper summary statement:

• In swine, the impact of AA

supplementation with low CP diets to

reduce N excretion ranged from 28 to 62%

depending upon the size of the pig, level

of dietary CP reduction and initial CP level

in the control diet.

Lower Protein Diets with

added amino acids will

reduce nitrogen content in

manure

• The average reduction in N excretion per

unit of dietary CP reduction was 8.4%.

National Center for Manure

and Animal Waste

Management

White paper summary statement:

• Research has shown that phytase addition

will reduce P excretion from 25 to 35%.

Looking at an Example using the Following Dietary & Performance Assumptions:

Performance

• Start wt 12 lb

• End wt 270 lb

• Feed 698 lb

• ADG 1.51

• ADFI 4.10

• F:G 2.71

• Days 170

Ingredient pricing, $/ton

Corn $7.00/bu

SBM (46%) $400

Lysine (AA) $2,800

Premix $720

Premix/Phy $620

DDGS $300

Feeding Scenarios – Lysine (AA), Phytase, &/or DDGS

Lysine /AA no yes yes yes yes High AA no hiAA no

DDGS no no no yes yes yes yes no yes

Phytase no no yes no yes yes yes yes no

Corn 530.9 567.3 567.3 441.2 441.4 453.0 404.4 579.5 404.1

SBM (46%) 148.0 110.2 110.2 75.5 75.2 59.9 113.6 94.3 113.9

Lysine 1.4 1.4 1.4 1.4 5.1 0.0 5.1 0.0

MDL ISU-Pmx 13.4 13.4 13.4 0.0 0.0 0.0 13.4

MDL ISU-Pmx-Phy 13.4 13.4 13.4 13.4 13.4 0.0

DDGS 160.9 160.9 160.9 160.9 0.0 160.9

Total lb/Pig 698 698 698 698 698 698 698 698 698

$ Feed /pig $105.49 $104.40 $103.73 $105.82 $105.13 $108.69 $106.26 $107.25 $106.95

Feeding Scenario

Feed Savings per Pig in Our

Example

• Base diet $105.49 feed cost per pig

• Adding lysine $104.40 feed cost per pig

• Feed savings per pig = 1.09

• How much is the manure reduction?

• From the model 6.92 lb of N per pig in manure is reduced to 4.77 with low protein added amino acid diet.

• A difference of 2.15 lb N worth $.55/lb is $1.18 reduction in manure N value

Model’s Nitrogen projections

Based on NRC 2012

CS CSL CSL CSL CSL CS-hi-AA CS CS-hi-AA CS

phy DDGS phy-DDGS phy-DDGS phy-DDGS phy DDGS

Dietary 21,120 18,480 18,480 22,200 22,200 21,480 24,840 17,640 24,840

Retained 12,720 12,720 12,720 12,720 12,720 12,720 12,720 12,720 12,720

Excreted 8,280 5,760 5,760 9,480 9,480 8,760 12,120 4,920 12,120

lb per 1,000 gal 58 40 40 66 66 61 85 34 85

$0.55 /lb value $31.82 $22.13 $22.13 $36.43 $36.43 $33.66 $46.57 $18.91 $46.57

Gallons of manure produced / group 143,136 (0.7 x 170 x 1200 pigs) x 1000

Feeding Scenario

Estimated Nitrogen, lb / 1,200 pigs

Lowest N manure from diet

The Value of N in Manure

• The value of N in Manure can be as low as

$19 of N per 1000 gal for a CS high AA,

low protein diet

• 1.9 cents per gallon, nearly equal to the

cost of hauling

Another Example Comparing

DDGS addition

• Adding lysine diet - $104.40 feed cost per pig

• Adding DDGS - $105.82

• Feed cost increase per pig = $1.42

• How much is the manure increase?

• From the model 4.77 lb of N per pig in manure

is increased to 7.87 with DDGS

• A difference of 3.10 lb N worth

$.55/lb is $1.71 increase in manure N value

Model’s Phosphorus projections

Based on NRC 2012

CS CSL CSL CSL CSL CS-hi-AA CS CS-hi-AA CS

phy DDGS phy-DDGS phy-DDGS phy-DDGS phy DDGS

Dietary 3,960 3,720 3,240 4,560 4,080 4,080 4,200 3,240 4,680

Retained 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800

Excreted - P 2,040 1,920 1,440 2,760 2,280 2,160 2,400 1,320 2,880

Excreted - P2O5 4,672 4,397 3,298 6,320 5,221 4,946 5,496 3,023 6,595

lb per 1,000 gal 33 31 23 44 36 35 38 21 46

$0.55 /lb value $17.95 $16.89 $12.67 $24.29 $20.06 $19.01 $21.12 $11.62 $25.34

Gallons of manure produced / group 143,136 (0.7 x 170 x 1200 pigs) x 1000

Feeding Scenario

Estimated Phosphorus, lb / 1,200 pigs

Feed Savings per Pig in Our

Example

• Lysine diet $104.40 feed cost per pig

• Adding Phytase- $103.73 feed cost per pig

• Feed savings per pig = $.67

• How much is the manure reduction?

• From the model 3.7 lb of P per pig in manure is

reduced to 2.74 with phytase added.

• A difference of .96 lb N worth

$.55/lb is $.53 reduction in manure P value

Diet changes impact $/1000 gal

$61.77

$50.67$44.89

$74.67$69.18

$65.01

$80.09

$41.52

$84.77

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

CS CSL CSL-phy CSL-DDGS CSL-phy-DDGS CS-hi-AA -phy-DDGS

CS-phy-DDGS CS-hi-AA -phy CS-DDGS

K2O P2O5 N

Range in Value Because of

Feed Formulation

• The range from the highest value manure

to the lowest is $43.25/1000 gallon

• In our model 8.3836 pigs per 1000 gallon

• $5.16 difference per pig

• About $23,500 on a 2400 hd site

Full value (NPK) manure Vs

nitrogen value

o Not much nutrient Vs volume or weight

in swine manure

o Test comes back as 35 lb per 1000 gal,

creates confusion with fertilizer analysis

o For example a 35-20-15 fertilizer would

have 2800 lb of N, not 35

Lowest cost haul – field next to

barn leading to potential over-

application of nutrients in that

field, especially P an K

• Instead of over application of P and K on a field next to the barn testing very high, transport the manure to a field with low P and K soil test.

• Economically, cost of haul, time is a huge factor (lost opportunity income from short haul jobs)

Nutrient dense, higher value

manure is more likely to be

tranported to more

environmentally friendly fields

• For example, if hauling cost is $15/ 1000 gal and it takes twice as long to haul to a low P and K testing field, then opportunity cost is $30/1000 gal

• Would you be more likely to take extra time to haul a tank worth $85/1000 gal or $42 to a low testing field?

Drinkers - water usage/waste

Water usage/wastage changes

the manure test

• Rule of thumb is 13% dry matter with no

water wastage or wash water.

• Typically 6 to 7 % solids for most manure

tests

• Goal is 10% solids – manure values will

increase

Thinking in terms of nutrient

yield check in pigs

• Base line diet without added DDGS will yield 6.92 lb. of N per pig.

• Check your N output per pig with the following formulas:

• First, calculate accurate gallons removed per year – cubit feet times 7.5

• Divide by total number of pigs on feed for the year to get gallons per pig

• 1000 divided by gallons per pig to get number of pigs per 1000 gallons

• Manure test value (# per 1000 gal) divided by number of pigs per 1000 gallon equals lb per pig

Take Home Points • Diet formulation will change the nutrient content and value of

manure substantially

• Manure is more valuable in term of return on crop yield on low soil test fields

• Water usage/wastage will change the manure test, goal is more than 7% dry matter (13% dry matter would be no wash water or wastage)

• Higher manure nutrient content will make it more feasible to haul to low soil test fields

• Manure nutrients are variable and accurate testing is essential

• Measure the depth of manure applied per year to determine your pig’s manure nutrient yield and value.

Thanks

Dave Stender

ISU Swine Field Specialist

(712)225-6196

Mobile (712)261-0225

dstender@iastate.edu

Manure Value for Crop

• ISUEO Manure Calculator

• www.extension.iastate.edu/agdm/livestock

/xls/b1-65manurecalculator.xls

Manure Sampling

• How to Interpret Your Manure Analysis

• http://www.agronext.iastate.edu/soilfertility/

info/PM3014.pdf

• How to Sample Manure for Nutrient

Analysis

• http://www.extension.iastate.edu/Publicatio

ns/PM1558.pdf