Poultry Grist - Winter 2021

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Poultry Grist

A PERIODIC NEWSLETTER PRODUCED BY GRAND VALLEY FORTIFIERS VOLUME 2, ISSUE 2 | WINTER 2021

Dear Friends, Living on a rural road with a grain elevator just east of our home, it has been wonderful to witness a steady stream of grain buggies, farm feed trucks and tractor trailer loads of freshly harvested corn going by the past couple of weeks. As Dr. Martin Clunies’ article indicates, not only has this year’s corn harvest been bountiful, early indications are that it is also of great quality. What a blessing Ontario producers have had this harvest year with high yielding, high quality soy bean and corn crops – especially as compared to yields and quality in other provinces across the country. At Grand Valley Fortifiers, we are feeling blessed to have had Dr. Ryan Snyder join our Poultry Team in June 2020 and Dr. Tanka Khanal in August 2021. In this edition of the Poultry Grist, we are pleased to officially introduce you to Tanka and to share an excellent article on the economic importance of uniformity in broiler flocks that Ryan has authored. It has been wonderful to have these two knowledgeable and experienced gentlemen expand our growing poultry focused team! As we near the end of 2021, all of us at Grand Valley Fortifiers are thankful. We are thankful for the opportunity to work so very closely with many of this province’s dedicated and innovative poultry producers. I know that I speak for our entire team when I wish you and your family a very blessed Christmas and a new year in 2022 filled with good health, and success in your farming endeavors. Sincerely, Ian Ross, President & CEO

COPING WITH HIGH GRAIN AND FEED COMMODITY PRICES

by: DR. MARTIN CLUNIES, PH.D. Monogastric Nutritionist, Grand Valley Fortifiers

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t goes without saying that the past 18 months have been tumultuous in grain and feed commodity markets. With weekly gyrations in prices adjusting to supply issues, the economy showed just how connected we are from industry to industry. Background: In past years, we have enjoyed a harvest with good grain yields and largely free of mycotoxins. While the corn and soybean harvests were close to expectations in Ontario and US, soybean harvest was lower than expected in Argentina and Brazil. This, combined with recent US exports to China, increased the demand for the soybeans to “crush,” driven by the demand for oil. Soybean meal prices responded, peaking at $690 a tonne in January 2020. Other inputs such as corn distillers dried grains with solubles (DDGS), regarded as a by-product, have become a staple of most livestock diets. As long as the economy gears up and demand for gasoline increases, availability and pricing should make DDGS economical for use in poultry diets. Canola meal, always on the cusp of pricing in or out of poultry diets, should be considered as a means of reducing the amount of soybean meal required. In late 2020, as challenges with cattle processing emerged and the price of soybean meal increased, meat meal prices followed suit to control the demand. Most recently, meat meal price has decreased and stabilized, once again becoming economical in poultry diets. Wheat shorts, ideal for use in poultry feeds where the requirements for energy are moderate, have since returned to more economical prices as well. The one outlier to this is the price of tallow, almost doubling in the 18-month period since the pandemic, showing very little sign of weakening. Assuming no unforeseen circumstances these grain GRAND VALLEY FORTIFIERS PO Box 726 Cambridge ON N1R 5W6 1-800-567-4400 grandvalley.com

price trends should remain much the same throughout the coming year. So what does this all mean to poultry farmers making their feed onfarm? Faced with sound bites of commodity shortages, supply chain issues, overseas exports, good news/bad news amplified by brokerage houses trading commodities on volatility, what should farmers do? With regards to grains, we will assume the corn supply is secured with the onfarm harvest and already stored in grain bins. Of the harvested summer grains, wheat represents an alternative to corn. Soft wheat, an Ontario rotation crop is available in limited supplies, and typically needs to be discounted $6–8 relative to the price of corn for it be economical. Securing protein commodities: The first priority then is to secure, where possible, your protein commodity supplies for the next 12 months. The real challenge is, what price should one pay to secure soybean meal through to fall 2022? Like corn, soybean meal prices have increased significantly over the period of the pandemic, with a present price of $571 compared to $490 prior to the beginning of the pandemic. Last year, China had returned to purchasing soybeans internationally and halted the purchase of Canadian canola meal. As a result, the price of beans increased. More recently, China resumed the purchase of US soybeans, increasing soybean meal prices because of demand. While prices could go higher if China continues to buy, the gravity of the lower 85th percentile could drag prices back to more normal levels. It may be advisable to buy on the dips, where you feel most comfortable. Now to things that are more predictable. Feed Wastage still remains the most overlooked means of decreasing feed costs and improving feed efficiency, on a poultry farm. As a nutritionist who travels and visits many barns, I remain amazed at the amount of feed presented around feeders. Most of this feed will never be consumed. It is said that if feed is visible around the feeder, the wastage is probably in the order of 5-10%. At a feed cost of $450/T an additional 5% feed wastage adds a cost of $22.50/tonne of feed. Feed Formulation is another method of reducing feed costs, specifiIan Ross, President & CEO | David Ross, VP & CMO Martin Clunies, Ph.D., Monogastric Nutritionist Ryan Snyder, Ph.D., Poultry Production Improvement Specialist Michael Peckover, Layout Editor


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