BPEX blog

Wednesday, 24 November 2010

Feed price hike - breaking even

Data analysis shows an increase of £30 a tonne in feed means 3.07 extra pigs will be required to break even.

Agrosoft is using the HandiCalc performance analysis tool to give producers a clear understanding of the possible impact of rising feed prices on:

  • the cost of production (CoP) per carcase kilogram
  • and the corresponding margin.

Performance is entered using figures such as farrowing rate, born alive and weaned per litter, post-weaning mortality, feed conversion ratio, entry and exit weights etc.

HandiCalc then applies 'what if' analyses to different scenarios. These involve incremental increases in feed price per tonne and demonstrating how improvements in performance can make a significant contribution to balancing the challenges of increased costs.

So, for example, for the UK CoP recently published in the BPEX European Cost of Production Report 2009, the break even pigs sold/sow/year would be 18.87. And it would be 21.94 with a £30/tonne additional feed increase: therefore 3.07 extra pigs would be required to break even.

It is also important to minimise feed wastage and improve feed efficiency. 2TS Action for Productivity 18: Efficient Feed Usage outlines the key areas to consider.

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