PEA IS OUT
Since last Nutriflash in march, there were not much variation of prices for the 3 main cereals that we are using, Corn (+2 Euros), Wheat (+2 Euros) and Barley (-5 Euros) but the small cost advantage of the barley has been reflected in some changes in few diets. The most noticeable change occurred on the price of the Soybean meal 48 that went down from 349 Euros to 340 Euros. The Canola meal drop was even larger, from 255 Euros in march against 231 Euros in June. At the opposite, Pea price jumped by +12% on the last 3 months from 215 Euros to 241 Euros this month. Such increase explained why we had to remove Pea from all our diets which triggers a lot of change as described in the tables below.
The broiler diet price went down taking advantage of the reduction of Soybean meal price. By taking out Pea and replacing it by Corn + SBM, the optimization exercise contributed to a saving of 0.9 Euro, more than half of the overall reduction of 1.9 Euros.
For the Duck diet, the situation is quite similar. We had to remove Pea to replace, not by SBM, but by Barley and Wheat. As result, we maintain the cost similar to the one we had in march.
For Pig Fattener, the variation in the part of each ingredient is much more important as Pea was representing 30% of this diet in march. Wheat and Barley became the major ingredients. We notice that Canola and Soybean meal are gaining importance. The Canola meal that we are using does not contain glucosinolates and can be used up to 15%-20% in diet. The increase use of Canola is definitively a successful strategy to reduce feed cost both in Pig Fattener and Sow diet.
With a decrease of 5 Euros of its price while Corn and Wheat were both increasing by 2 Euros, Barley become even more competitive and its contribution increased to 68% of the gestating sow diet. Fibre content is a major driver for optimization in Gestating sow. The requirement of the gestating sow is between 20 to 22% of Total Dietary fiber. That includes both lignocellulose, hemicellulose, pectins and other non-digestible oligosaccharides. The Barley, Sunflower meal and Sugar beet pulp have a quite high level of Total dietary fibre, higher than wheat bran and wheat middlings. Therefore, when increasing barley and sunflower meal, other source of fiber as wheat bran wheat middlings are less needed which partly explained why these 2 ingredients have been nearly removed from this month gestating sow diet.
The Dairy cow diet has been heavily impacted by the increase of Corn gluten cost that went from 205 Euros in march to 226 Euros this month. Following the same trend, Pea and DDGS Wheat increased by 12% on the same period. The price increase of these 3 major ingredients (representing 45% of march diet) explained the major part of the increase of the diet cost in the quarter 2. To absorb half of this increase, we went through a major reformulation using barley, soybean meal and DDGS Corn as replacement. This exercise enabled us to maintain the total material cost increase to ‘only’ 1.7 Euros on the period.