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Since last November, the prices of most ingredients went up. Among the cereals, Wheat price went up by 14 Euros per ton while Barley price increased only by 3 Euros.

Regarding protein sources, all the grains and meals prices increased. Soybean meal went up by +13 Euros and mostly namely Canola meal got an additional 26 Euros while Sunflower meal prices exploded by +16% (+28 Euros). These variations of prices oblige us to revise the diets where Wheat, Sunflower and Canola  were major ingredients in order to absorb part of the increase.

Nevertheless, reformulation does not enable us to balance on these ingredients prices increase and we must accept an increase of all our diets cost. The Pig Fattener and Broiler Grower diets reached their highest cost on the last 12 months. For the Duck Grower also, this month cost is high but still 0.8 Euros below July 2019 one. Regarding Gestating sows, we still did not beat the highest cost this month that belongs to April last year.

As you can see in the formula below, there is not much we could change in our Broiler Grower versus the last formula we proposed to you in last November 2019. Soybean meal, Wheat and Sunflower meal prices increased but we do not have much alternatives to replace these ingredients. As consequences, this diet cost increased by 4.7% over a period of 4 months.

Regarding the duck grower diet, Pea and Barley increased their share to replace wheat and canola meal. These changes coming from the optimization exercise helped us to secure a saving of 2.8 Euros, a little bit better than the 1.3 Euros saved for the Broiler Grower diet. Swine requirement offers more options in changing ingredients while still guaranteeing nutritional requirement. As results, Pea, Corn and Barley gained importance to partly replace wheat and soybean meal. These optimizations ensure that we absorb 25-30% of the cost increase. Just to notice that the optimization had to accept a slight increase of sunflower meal in order to push for a reduction of soybean meal and wheat.

For the Dairy concentrate, the top 4 ingredients remained unchanged. The Palm kernel meal have been removed and replaced by some peas, wheat bran and Barley. Optimization did not help much in that case and we experienced an increase of 19.3 Euros of our diet cost.

In conclusion, this month was a bad month for optimization. The ingredients price increased significantly and there was not much we could do to prevent our formula cost to increase, except maybe a little bit for Swine. The next review will be issued on June 30thand I hope that we will have better news.

These diets have been prepared with the support of Mg2mix - FRANCE using ALLIX3 formulation software technology from A-systems - FRANCE 


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