3 Ways to Lessen the Impact of High Feed Prices in Pork Production
Soybean prices surpassed the $12-mark last week, taking away from margins in pork production. Feed costs are roughly $15 more per pig today than back in July.
What can U.S. pork producers do to lessen the impact of high soybean prices? Kansas State University swine nutritionist Joel DeRouchey says there aren’t many options now.
“DDGS is high priced, wheat middlings are pricing out in many places. Not much can be done from an alternative feedstuff use to reduce feed costs now,” DeRouchey says.
However, he offered producers three important reminders to keep feed costs as low as possible under the circumstances.
1. Verify nutrient loadings with new crop corn and soybean meal to ensure you’re not over or under formulating with soybean meal in the diet.
2. Verify nutrient amino acid recommendations for your genetics. Genetic companies often report on maximum performance rather than on ideal economics based on current market conditions, often these are not the same, DeRouchey says.
“Ensure your diets are formulated for ideal economic basis, which may lower some amino acid values or ratios compared to maximum performance recommendations. This can lower the amount of protein sources contributing to the amino acid needs of the diet,” he says.
3. Maximize synthetic amino acids. This is not a new concept and regularly practiced, but review their use, DeRouchey says.
What’s ahead for 2021?
“Feed prices, corn and meal, are fundamental to the health of the pork industry and during 2021, they pose a significant risk. In my model, meal represents about 30% of total feed costs,” says John Nalivka of Sterling Marketing in Vale, Ore.
He says the other critical factor when it comes to profitability in 2021 is pork exports.
“Interestingly enough, high feed prices are largely the result of increased corn and soybean exports to China as they rebuild their pork industry rather than continue to buy U.S. pork at the levels realized in 2020. It’s somewhat of a conundrum, to say the least,” Nalivka adds.
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