Raw material nutrient variability has substantial impact on the potential profitability of chicken meat production

Abstract

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.