Cost control measures: feed cost calculation method, feed cost control measures

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The feed industry generally uses a step-by-step method to calculate the cost. That is, the components of product manufacturing costs are direct materials, direct labor and manufacturing costs.

Cost control is a cost management goal established in advance by an enterprise according to a certain period of time, within the scope of its functions and powers, before the occurrence of production consumption and in the process of cost control, a series of prevention and adjustment measures are taken to various factors and conditions that affect the cost to ensure the realization of the cost management objectives.

For the feed industry, reducing the total cost of feed, not just the cost per kilogram or pound, is a topic that will never be out of date.

One of the principles: to reduce the profit margin of nutrients, most general diets are prepared to adapt to various farm conditions.

For their part, these diets usually contain the overall safety margin of most nutrients (most likely amino acids). A qualified dietitian will re-evaluate these diets and propose a challenge model that tests the effects of reduced nutrient concentrations on animal performance until the reduction in nutrients is no longer profitable. In some cases, there is nothing wrong with a slight decline in animal production performance if the overall feed cost can be significantly reduced. In most cases, a small decrease in the level of the first limiting amino acid (lysine for pigs and methionine for poultry) is a good start. According to personal experience, it is a good idea to reduce lysine and / or methionine in pig and poultry diets by 0.1% respectively.

Principle 2: the best way to solve the problem is to improve the feed conversion rate, because nutritionists always make the most effective plans for specific genetic composition.

Investment in hens that can breed chickens with high feed conversion rates is usually at the expense of reducing the reproductive performance of hens. The implementation of such a strategy is slow because it takes time for hens to achieve "recycling". On the contrary, the hereditary line of the rooster breeding the first generation of hybrid offspring is a strong and rapid way to affect the feed conversion rate. Because genetic lines go through complex processes, it is necessary to pay attention to not changing carcass quality and other limiting factors.

Principle 3: the first step in reducing feed waste should be to determine the amount of feed wasted in the trough.

A prodigal rate of more than 5% is unacceptable, but there are still many farms where 20%, 30% of the feed is wasted. To determine the amount of feed loss, you need to invite an expert to check the farm (or provide digital photos of the trough and its surroundings). The second step usually involves setting, repairing, or installing such an adjustment gate. Complete replacement of feed tanks is rare, but this option cannot be excluded when feed prices rise. Personally, I think the investment in high-end feed tanks that can minimize loss is a wise choice for any new or refurbished feed plant.