Addressing poultry feed cost and nutrition: 3 fundamental considerations

The economic success of poultry feeding programs is certainly influenced by the relationship between formulated nutrient and energy levels and what the birds actually consume. Any deviation from the intended nutritional profiles can impact flock performance, feed efficiency, and realized production costs. Poultry nutritionists play a critical role in minimizing these discrepancies by managing the variation inherent in feed ingredients.

Dr. Nathan Collins
Poultry Technical Consultant
Elanco

The poultry industry continually faces pressure from rising production costs due to fluctuations in feed ingredient prices and other factors. As supply chain challenges and inflation increase, feed cost management is a top priority for poultry producers, which attribute 68-75% of total production expenses to feed alone.1

Poultry companies use specific performance metrics to shape their economic strategies based on their unique business goals, production methods, and product offerings. Feed expense historically comprises the majority of input costs for poultry producers. An effective feed formulation strategy that provides the birds with a proper balance of nutrients and energy is paramount to maximizing performance and profitability.

Poultry feeding programs aim to provide nutrients and energy to the birds as specified by purpose-formulated feeds. The less variation exists between formulated nutrient levels and what is consumed by the birds, the greater the odds of achieving expected flock performance and realizing planned feeding program cost. Poultry nutritionists are tasked with managing the variation inherent in ingredients as a fundamental strategy to address this risk. The process by which ingredients are evaluated, selected, and incorporated into feed formulations can significantly influence profitability, making such efforts a critical factor in poultry production.

1. CUSTOMARY INGREDIENTS
A thorough and accurate characterization of the customary ingredients used in feed formulation is advisable for realizing the maximum economic value from feeding programs. This strategy applies not only to primary commodity ingredients but also to often ignored minor and micro ingredients.

Comprehensive ingredient characterization should include all nutritional categories critical to the feed formulation process and to flock performance, including the digestible amino acid, mineral, and energy components. Nutritionists must establish their characterization strategy based upon the resources readily available to them and balance those options with the degree of accuracy deemed appropriate for their situation. To that end, there are several common and practical methods available for poultry nutritionists to characterize ingredients:

Book Values: Accepting generic reference values available in a variety of published materials. This does not require current ingredient sampling.

Laboratory Analysis: Using traditional analytical methods to quantify the proximate composition (moisture, ash, crude protein, crude fat, crude fiber) and mineral content of current ingredient samples.

Nutrient Calculations: Applying equations dependent upon the results from laboratory analyses of current samples to estimate the nutrient and/or energy levels of ingredients.

Near-Infrared Spectroscopy (NIR): Instrumentation providing analysis of sample scans within the near-infrared region of the electromagnetic spectrum. This technology is valued for its speed and critical ability to estimate digestible amino acid and energy levels for ingredients in addition to their proximate composition. It is important to note that NIR, as a secondary analytical technique, relies upon traditional laboratory analytical methods to generate the reference values required for robust and reliable calibration equations.

Each of these techniques can contribute to a more precise understanding of ingredient composition, helping nutritionists formulate more accurate diets that optimize bird health, performance, and profitability. The development, availability, and full-scale implementation of other emerging technologies shows promise for improving the timeliness, precision, efficiency, and cost-effectiveness of poultry nutrition, benefiting both producers and the industry as a whole.

2. ALTERNATIVE INGREDIENTS
Ingredients that are not customary to a particular locale may be considered as alternative, unconventional, or novel. Such ingredients may offer cost-effective benefits for poultry feeding programs. However, incorporating unconventional ingredients into poultry diets demands careful consideration as not all novel ingredients are as well characterized as traditional feedstuffs. Fully evaluating and understanding alternative feed ingredients can be challenging, frequently due to a lack of scientific information relative to the target animals including nutritional profiles, potential antinutritional factors, and acceptable inclusion rates.

Additionally, it is important to assess the long-term availability of these ingredients, including any potential risks to supply. Supply chain consistency plays a crucial role in determining the economic viability of alternative ingredients. Even if an ingredient is nutritionally valuable and cost-effective, supply chain instability can make it economically impractical for feeding programs over the long term.

3. EFFICIENCY VS. VALUE
The poultry industry has historically relied on feed conversion as a primary metric for evaluating the economic success of feeding programs. However, it is suggested that a focus on value-based formulation as opposed to strictly least-cost formulation can be beneficial for assessing feeding program changes over time. Analyzing a company’s product mix value (i.e., income) relative to total feed cost after implementation of feeding program changes is encouraged.

The economic success of poultry feeding programs is certainly influenced by the relationship between formulated nutrient and energy levels and what the birds actually consume. Any deviation from the intended nutritional profiles can impact flock performance, feed efficiency, and realized production costs. Poultry nutritionists play a critical role in minimizing these discrepancies by managing the variation inherent in feed ingredients. Meaningful and timely ingredient characterization, a fundamental component of this process, has economic value. By incorporating these fundamentals into practice, poultry companies can better optimize efficiency and enhance profitability, strengthening their bottom line.

Reference
1Bibyan, R.S. and Kour H. 2024. “Price Rise of Poultry Feed Is An Issue: How to Economize Poultry Feeding”. SR Publications. https://www.srpublication.com/price-rise-of-poultry-feed-is-an-issue-how-to-economize-poultry-feeding/

About Dr. Nathan Collins
Dr. Nathan Collins earned his B.S. in Poultry Science from Virginia Tech and his M.S. and Ph.D. in Poultry Nutrition from Auburn University and has over 20 years of experience in the U.S. broiler production industry. His areas of expertise include disease prevention and control with a specialized expertise in broilers and poultry nutrition.