Nutriflash - Corn or Wheat?

The trend that we underlined last month has been accelerated this month. The Corn price is continuing to increase with an additional 5 Euros per ton while the Wheat and Barley saw their price reduced by respectively 12 and 7 Euros. With these new ingredients prices, all our diets cost have been reduced by an average of 6 Euros except for Dairy cow diet.

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The largest reduction is coming from the Pig Finisher diet and Layer diet with a cut of respectively 9.4 and 7.6 Euros. For the Swine, this decrease is mostly the result of the evolution of ingredients price. You will notice that the changes in the diet are minimal. But for the Poultry, these new prices triggered significant adjustment. Without these variations, the feed cost would have been only reduced by 2 euros. The optimization realized by our team of nutritionists represents 60 to 80% of the savings for this month.

As you see in the formulas above, the wheat contribution gains 29% in the Broiler Grower diet and 22% in the Duck Grower diet, mainly in replacement of the corn. This is a major change in the diet. You will notice as well that we incorporated 5% of wheat middlings in the Broiler Grower diet in order to leverage its price reduction (-10 Euros this month).

Regarding the Swine formulas below, the variations are much more limited. Wheat is gaining 4.2 points of contribution in the Pig Fattener diet in replacement of the Pea and 2.7 in the Gestating Sow formula in replacement of the Barley. The other ingredients do not change much.

​​In last month Nutriflash, I mentioned to you that the prices of interest of Corn in Swine were getting closer from its market price. But the situation changed. The reduction of Wheat and Barley price put some pressure on the price of interest of corn both in Pig Fattener and Sow Gestating diets while the market price of corn kept on increasing. Both are now now moving away and as long as wheat and barley stay at the current price, we will not see corn in our Swine diets.​​

​​In Dairy, this month again, there is a major change in the formula. In June, we were using Corn as the main source of energy. Last month, we shifted to barley but this month, Barley is fully replaced by Wheat. but with a limited impact on the feed cost (only 0.2 Euros from optimization). But the price of interest of Barley in this diet is only 1 Euro below its market price for a potential incorporation at 7.2%. The situation could change again next month.

More update on these diets optimization at the end of September. Stay tuned !!!

These diets have been prepared with the support of Mg2mix - FRANCE

#optimization #macroingredients #feedcost #priceofinterest #optimizationsavings


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