Swine Grist - Spring 2021

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Swine Grist

A PERIODIC NEWSLETTER PRODUCED BY GRAND VALLEY FORTIFIERS VOLUME 23, ISSUE 1 | SPRING 2021

Dear Friends, Spring officially arrived on Saturday March 20th and with it came some incredible Spring weather. It is likely that hog producers are even more excited about the pork prices that we are achieving and the CME futures that we are seeing. With April & May Futures trading around $95/cwt and June, July and August around $100/cwt, 2021 is looking like it should be a very profitable year for pork producers, notwithstanding much higher feed costs than experienced in the previous decade. With high feed costs and high pork prices, producers are encouraged to invest in alternative ingredients, amino acids and micro ingredients that research has proven to improve feed conversion and increase ADG. The more pigs through the barn in the lucrative months, the better. Also, if history is a guide, it may be wise to carefully consider forward contracting hogs into the fall months. Included in this Grist is an update on the GVF Profit Finder program which now has almost 150 barns enrolled. This weekly report is pushed to Producers’ in-boxes, providing real time dashboard reporting on the effectiveness of their barn(s) sort and shipping weights, putting opportunity dollars left on the table, top of mind. If interested, speak to your GVF Swine Specialist for more information. With the growing need for large corporations to address Greenhouse Gas (GHG) emissions in their supply chain, and livestock producers often getting a bum rap for this, GVF is becoming more knowledgeable on this subject and investing in modelling tools that, we believe will help provide opportunities for hog producers in the future. In Rick Fernandes’ article on page 2, you will learn about our initial carbon footprint pilot study which was completed in early winter 2020. Wishing you a safe and productive planting season and profitable 2021! Sincerely, Ian Ross, President & CEO

SOYA MEAL ALTERNATIVES

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

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ost recently the livestock feed ingredient protein market is experiencing a spike in prices, led by soybean meal whose prices have risen 54% from the 10-year average of approximately $450 per tonne. All protein ingredients have increased significantly in price. The implications are not just for proteins, but also for oils, which are produced as a part of the soybean meal production system. Most of the spike in price has been driven around the fear of low bean supplies for increasing crush requirements and China’s increasing demand for proteins as the affluence of its population rises. As a backdrop to this, China has been building back its pig herd population after the devastation of African Swine Fever and there is the perceived notion of increasing soybean demand over the next year. What is the alternative to expensive soybean meal as livestock producers attempt to control feed costs? Alternative ingredients include protein meals such as canola meal, corn gluten meal, meat, pork and poultry meals, sunflower meal, peas and legumes. Other energy protein ingredients include Dried Distillers Grains with Solubles (DDGS) and wheat shorts or middlings. Despite being cheaper, each of these have increased in price following soybean meal and corn. The first alternative is canola meal, typically only used in poultry diets in Ontario, this protein is used in most pig diets in Western Canada, reflecting the price advantage of being close to where the majority of Canadian the crop is grown. Canola meal with 36-38% protein is low in energy and high in the sulfur amino acids methionine & cysteine, and so its use in pig diets is GRAND VALLEY FORTIFIERS PO Box 726 Cambridge ON N1R 5W6 1-800-567-4400 grandvalley.com

dependent upon being combined with reasonably priced oil/fat and lysine. Due to its associated low palatability, it is often limited to less than 5% of the diet and so the savings potential is limited. Corn Gluten Meal which has 65% protein and is relatively high in energy, is extremely deficient in lysine (the first limiting amino acid in swine feed) and thus, even with very cheap lysine, rarely prices in for use in pig diets. Meat meal with 49% protein and pork meal with 57% protein, are expensive at this time due to the fluctuating animal processing capacity. The supply of both have been limited, which has put a lot more upward pressure on the demand and price of soybean meal. Meat meal use in Canadian pig feeds is limited due to the risk of ractopamine residues associated with cattle being fed Optaflexx (Ractopamine). Pork meal could be still considered a risk by many as concern with PED transmission is significant. Both are excellent sources of the minerals calcium and phosphorus. While being higher in energy, compared to soybean meal, and provides a greater advantage for use in poultry diets where the levels of those minerals and energy are much higher compared to pig diets. Poultry meal with its high protein value of 65% is used primarily in pet foods and typically priced out of the livestock feed market. Feather meal is high in protein at 78% with its high sulfur amino acid cysteine content is used primarily at a low inclusion of 2-3.5% in poultry diets. Peas and legumes containing 21-23% protein are more commonly grown in prairie regions, are low in sulfur amino acids, and provide the best economics when combined with wheat and low methionine pricing to complement its protein balance. Peas and legumes are highly palatable and can be included in diets at up to 20% or more. Then there are DDGS which are a byproduct of alcohol fermentation from the starch of the corn grain and are commonly used in pig diets at anywhere from 10-30% of the diet. Though deficient in lysine, DDGS has approximately the same energy as corn, and so when combined with Ian Ross, President & CEO | David Ross, VP & CMO Martin Clunies, Ph.D. | Bruce Schumann | Adam Totafurno | Youngji Rho, Ph.D., Monogastric Nutritionists Michael Peckover, Publisher


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