FEED ADDITIVES ▶▶▶
• FCR: PC = 1.40; NC = 1.26 • Total gain: PC = 5.95kg; NC = 6.55; presume extra gain is $ 0.50/kg
• Feed cost: PC = $ 3.17; NC = $ 3.04 Based on these general numbers the additive would be worth $ 0.42/pig, which includes the cost of the feed additive. This newfound value with the additional performance bene- fits now creates a 4:1 return on investment (ROI) for this ex- ample; thus it is an implementable technology. But how can a producer turn the table to understand what a technology is worth? First by calculating the value from the research and then determining the ROI, it’s possible to justify the perceived risk of implementing a new technology. Let us assume a $ 1.00/pig value, similar to a mortality benefit or feed cost savings in finishing, an ROI of 3:1 and feed intake at 290kg/pig. This equates to around $ 0.86/tonne of cost in complete feed, and if the inclusion is 0.5kg/tonne a producer should not pay more than $ 1.72/kg for this feed additive.
Conclusions In closing, a system should evaluate all economic drivers and understand their value for that system. Then, technologies should be evaluated only for the key drivers for that system,
which have the biggest opportunity to improve profitability. Also, it is essential to understand what the values of different technologies are for a system by not looking just at a set of data that has promising results, but by understanding if the changes fit into the value proposition of the system, beyond dollars, but considering management and ease of implementation.
Altering feed formulation by removing the more expensive diets results in little savings overall.
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▶ ALL ABOUT FEED | Volume 29, No. 3, 2021 29
PHOTO: SHUTTERSTOCK
PHOTO: ERIK VAN DER BURGT (VERBEELD)
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