Alternatives to formulate laying hen diets beyond the traditional least-cost model
Owing to the high cost of feed for poultry, there is continuous pressure to formulate 'least-cost' diets that meet nutritional requirements. However, the main aim of any commercial enterprise is usually to maximize profits with the resources or inputs available, and the conventional or historic tool of least-cost ration formulation has limitations in a more demanding economic environment. The layer industry may experience particularly volatile changes in egg price, principally owing to changes in supply rather than demand, and in the past, it has been reported to possess less production and financial data reporting than other industries. Thus, increased flexibility during these uncertain times may give the layer industry greater opportunity and capacity to cope with market fluctuations. A practical example of how a laying hen operation may benefit from these approaches demonstrates that the maximum-profit solution does not always match the least-cost solution and that stochastic feed formulation may be used to accurately assign safety margins and define the level of certainty this safety margin will provide. Finally, as producers better understand how their hens respond to different dietary specifications, the opportunity arises to choose the set of specifications that result in maximum profits for their unique situations, rather than relying on least-cost diets formulated to nutrient requirements alone.
Raw material nutrient variability has substantial impact on the potential profitability of chicken meat production
Feed accounts for more than 65% of live production costs of poultry production; thus, accurate feed formulation is vital to ensure poultry are receiving an optimal diet and nutrients are not in undersupply or oversupply. However, this is difficult when the nutrient compositions of feed ingredient batches are highly variable. To help reduce the variability in the specified finished feeds, appropriate sampling methodology is critical. Nevertheless, recommended methodology and depth of detail within technical articles varies greatly and does not always reflect the recommendations of the Association of Official Analytical Chemists, a nonprofit scientific association that publishes standardized analytical methods. It is often understood that increased variability in ingredients due to poor sampling technique is detrimental to industry, but the potential economic cost of poor sampling is often not appreciated. Thus, the extent that variation in protein in feed ingredients affects expected performance and profits for the poultry industry was modeled. It was demonstrated that it is possible to incur a 63% reduction in gross margin or a difference of up to $19,053 (USD) in gross margin from one cycle of 30,000 broilers by simply overestimating the nutrient content of feedstuffs. Assuming a poultry company may produce approximately 1,000 broiler cycles per year, this equates to a loss of up to $19 million (USD). Hence, it is clear that identifying the most accurate way to sample, and improving the understanding and implementation of proper sampling methodology, should be a priority.