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Budi Tangendjaja PhD USGC SEA Indonesia How to feed broiler for maximum profitability

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Page 1: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

Budi Tangendjaja PhD

USGC SEA

Indonesia

How to feed broiler for

maximum profitability

Page 2: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Outline

• Introduction

• Cost breakdown

• Nutrition

• Manufacturing

• Feeding system

• Bench marking

• New Technology

• Conclusion

2

Page 3: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

MANY (MEAT) BUSINESSES

FORGET BASIC ECONOMICS

DEPENDS ON

SUPPLY AND

DEMAND OF

THE INPUTS

DEPENDS ON

SUPPLY AND

DEMAND OF

THE FINISHED

PRODUCTS

Page 4: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 The Vital Signs

2007 2008 2009 2010 2011 2012

Corn $/ Bushel 4.03 5.48 4.19 4.39 7.10 7.32

SBM $/ton 239.85 344.35 353.87 321.00 364.92 428.59

Calories/lb of feed 1433 1425 1425 1420 1412 1405

Days to 6 lb 43.82 43.78 43.02 42.85 48.18 46.89

Average body wt lb. 5.91 5.84 5.87 6.05 6.13 6.22

Calories/lb gain 2671 2651 2627 2629 2709 2625

Feed cost $/ton 202.47 282.73 249.25 242.20 328.57 358.14

Feed cost ¢/lb bird 18.02 24.96 21.81 21.21 29.64 31.30

Waldroup, 2013. USGC seminar

Page 5: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Competitive poultry producer (Aho, 2000)

1. Low feed and labor costs

2. Good business climate

3. Vertical integration &

Economies of Scale

4. Access to Technology

Page 6: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Advantages in Brazil

Good climate: low cost housing

Low cost of labor

Inland feed ingredients (corn, soybeans)

Combined with:

Integrated production (contract)

Big companies with good management

Modern equipment

Innovative and market-driven

Low level of governmental regulations e.g. use of MBM and growth promotors

Page 7: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

PROCESSING COSTS**

Live Bird 536.29 84.78%

Labor 53.91 8.52%

Expenses 33.44 5.29%

Packaging 8.89 1.41%

632.53 100.00%

TOTAL COST PER 1 MT OF LIVE BIRD

US$ per MT

Cheap Labor is not the determinant cost factor…..

Baker,2002

Page 8: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

DAY OLD CHICK (DOC) US$ %

Parent Stock 5.90 0.93%

Feed 35.65 5.64%

Other 5.68 0.90%

Expenses 14.97 2.37%

62.20 9.83%

LIVE BIRD per MT to PLANT

DOC 62.20 9.83%

Feed 379.27 59.96%

Vaccine 21.93 3.47%

Farm/Transport 72.89 11.52%

536.29 84.78%

COSTS – FARM US$ PER MT LIVE BIRD

… but feed and therefore raw materials are……….

Page 9: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

The key factors, all have

to be optimised

Housing

Health and Bio security

Environment

Feed and Water

Chick Management

(tying it all together)

Genetics

Given

Page 10: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 In Nutrition, the Three Most Expensive Nutrients are:

1. Energy

2. Amino Acids (protein)

3. Available Phosphorus

Page 11: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Am

ino a

cid

s (%

of

fee

d)

Age of broiler

Starter

Grower

Finisher

Broiler optimum

balanced amino

acidsPrestarter

Withdrawl

Precision Feeding

Page 12: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 3 Feeding program for broiler

1. Maximum growth and feed conversion

2. Reduced cost formulation

3. Maximizing meat production

Cobb (2003)

Page 13: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Page 14: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Page 15: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Page 16: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Withdrawal Feed

• For 2 kg broiler, 25% feed consumed

in 5-7 days prior to slaughter

• Remove drugs, vitamin, mineral, feed

additives 7 days before processing

• Cost reduction can be >2%, and also

protect consumers from residue

Page 17: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Separate feeding

• Male and female are grown

separately

• There is different requirement

between sex especially amino

acids

• Increase profitability

Page 18: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

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Selecting the proper nutrient density is one of the

primary determinants of profit in growing broilers

• Energy costs make up about 75% of total cost of producing broilers

• Modern broilers do not adjust feed intake in direct proportion to dietary energy.

• Formulating diets on basis of least cost per caloric unit (energy and associated nutrients) has consistently been shown to result in the lowest feed cost per unit of gain.

Formulation not only Least Cost

Page 19: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

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Calorie Conversion Ratio

Calories per unit of gain

• Eliminates the variability of dietary energy level

in determining nutritional efficiency

• Enables a better comparison of efficiency

between groups differing in dietary energy

• Has become the standard of comparison in

statistical surveys of broiler companies

• Grower bonuses now based on relative

performance versus peer growers.

Page 20: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Ratio DThr/Dlys on FCR Bro Grower (14-28 d)

1.50

1.55

1.60

1.65

1.70

1.75

1.80

0.46 0.54 0.62 0.70 0.78 0.86 C

1.50

1.55

1.60

1.65

1.70

1.75

1.80

0.84 0.92 1.00 1.08 1.16 1.24 C

Lys (% dig) Thr (% dig)

1.08 0.76

70

Corzo et al. , 2009

Page 21: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

AA Starter Grower Finisher

TSAA 75 76 77

Thr 66 67 68

Val 76 77 77

Ile 71 71 71

Arg 108 108 108

Trp 18 18 18

Suggested Amino Acid Ratios

Dozier, 2012

Page 22: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Page 23: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

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Quality pellets improve BW and FCR

600

620

640

660

680

700

720

740

100 P 80 P 60 P 40 P 20 P Mash

38

-45

d B

W g

ain

(g

)

1.75

1.80

1.85

1.90

1.95

2.00

2.05

FC

R

BW (g) FCR

McKinney and Teeter, 2004. Poult. Sci. 83:1165

The caloric value of good pellets

was estimated at 187 kcal/kg!!

Page 24: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Effect of Digestible Lysine and Feed Form on AWG-Trial 1

650

700

750

800

850

900

0.75 0.85 0.95 1.05 1.15

Mash

Pellete

e

d cd cd

bc cd cd

a a

Digestible Lysine, %

grams

P=0.0009

Beyer, 2009

Page 25: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Form of feed by age of broiler

Ross (2002)

Age Feed form and size

0 -10 days Sieved crumbs

11 – 28 days 2 – 3mm diameter pellets

29 - process 3 mm diameter pellets

Page 26: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Particle Size of Corn and

Sorghum & ADG in Broilers

30.0

33.5

37.0

900 700 500 300

g SE 0.3

P-size quad (P < 0.01)

C vs S x P-size lin (P < 0.02) Sorghum

Corn

Hancock, 2010

Page 27: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Stress

Reduce with housing management

and with nutrition

Page 28: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Page 29: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Key performance indicators

Total liveweight marketed

Total mortality

Total feed used

Average liveweight

Average FCR

Average age

Age corrected to standard weight

FCR corrected to standard weight

Feed cost per kg liveweight

Total cost per bird and per kg liveweight

Maximum biomass (kg liveweight per m2)

Page 30: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Performance (EPEF or IP) different

countries in Asia

Page 31: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Page 32: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Sealed vs. Unsealed Side Wall (University of Georgia)

Koldehoff, 2011. Big Dutchman seminar

Page 33: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Advance Information and

Technology

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Page 34: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Early Feeding

Early access to feed: • Stimulation of intestinal motility (Noy and Sklan, 1998)

• Increased body and organ growth

• Improved livability

• Immune function (Dibner et al., 1998)

• Carcass yields (Noy and Sklan, 1999)

Early feed deprivation: • Shorter villi and microvilli (Uni, 1999)

• Reduced muscle growth (Vieira and Moran, 1999)

• Reduced lymphocyte colonization (Dibner et al., 1998; Bar Shira et al, 2005)

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Page 35: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Threonine for Immunity

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Average daily temp 30+5oC and Rh in the barn 85+3%

Page 36: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Is Creatine important?

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Payne, 2013

Page 37: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Potential Benefits of Enzyme

Supplementation

• Increase feed efficiency

• Decrease gut maintenance cost

• Reduction in endogenous flow and enzyme production

• Improve performance

• Improve litter quality

• Improve bird uniformity

• May also lead to reductions in pathogenic

microflora and improvements in bird health and

welfare

• Decrease production costs!!!

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Page 38: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013

Effect of High Phytase Levels on 0-

16 d Performance

200

250

300

350

400

450

500

550

600

650

0 2000 4000 6000 8000 10000 12000 14000

Bo

dy

we

igh

t (g

)

FTU/kg

BWG FI

Waldroup, 2013. USGC seminar

Page 39: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Feed Additives Usage

•Efficacy: what is the content of FA? What level, Mode of action? Is it proven scientifically (peer review Journal), do your own trial, other big guy using it?

•Improve efficiency: what is your farm main problem? Nutrition, Disease, Management, Genetic? test in your farm using + & - control with sufficient replicates

•Risk Analyses: what is current data, is it going to affect animal performance, will FA overcome problem

•Economic return: Cost Addition or Reduction? how much pay back? Comparison with similar product, require Investment?

Page 40: How to feed broiler for maximum profitability · Big companies with good management ... • Improve bird uniformity • May also lead to reductions in pathogenic microflora and improvements

WPSA Malaysia

Nov 30 – Dec 1, 2013 Conclusion & Recommendations

• Reduce cost of broiler feed and feeding

• Nutrients, Formulation, Precise Feeding

• Control environments to reduce stress &

diseases

Recommendations:

1. Adopt new technology

2. Benchmark to the leading broiler

3. Always improve Efficiency

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