How to feed broiler for

maximum profitability
Budi Tangendjaja PhD
USGC SEA
Indonesia
 WPSA Malaysia
Outline Nov 30 – Dec 1, 2013

• Introduction
• Cost breakdown
• Nutrition
• Manufacturing
• Feeding system
• Bench marking
• New Technology
• Conclusion

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MANY (MEAT) BUSINESSES WPSA Malaysia
FORGET BASIC ECONOMICS Nov 30 – Dec 1, 2013

DEPENDS ON DEPENDS ON
SUPPLY AND SUPPLY AND
DEMAND OF DEMAND OF
THE INPUTS THE FINISHED
PRODUCTS
 WPSA Malaysia
The Vital Signs Nov 30 – Dec 1, 2013

2007 2008 2009 2010 2011 2012

Corn $/ Bushel 4.03 5.48 4.19 4.39 7.10 7.32

SBM $/ton 239.85 344.35 353.87 321.00 364.92 428.59

Calories/lb of feed 1433 1425 1425 1420 1412 1405

Days to 6 lb 43.82 43.78 43.02 42.85 48.18 46.89

Average body wt lb. 5.91 5.84 5.87 6.05 6.13 6.22

Calories/lb gain 2671 2651 2627 2629 2709 2625

Feed cost $/ton 202.47 282.73 249.25 242.20 328.57 358.14

Feed cost ¢/lb bird 18.02 24.96 21.81 21.21 29.64 31.30

Waldroup, 2013. USGC seminar

Competitive poultry producer WPSA Malaysia
(Aho, 2000) Nov 30 – Dec 1, 2013

1. Low feed and labor costs

2. Good business climate
3. Vertical integration &
Economies of Scale
4. Access to Technology
 WPSA Malaysia
Advantages in Brazil Nov 30 – Dec 1, 2013

 Good climate: low cost housing

 Low cost of labor
 Inland feed ingredients (corn, soybeans)

Combined with:
 Integrated production (contract)
 Big companies with good management
 Modern equipment
 Innovative and market-driven
 Low level of governmental regulations e.g. use of
MBM and growth promotors
Cheap Labor is not the determinant cost factor….. WPSA Malaysia
Nov 30 – Dec 1, 2013

TOTAL COST PER 1 MT OF LIVE BIRD

US$ per MT

PROCESSING COSTS**
Live Bird 536.29 84.78%
Labor 53.91 8.52%
Expenses 33.44 5.29%
Packaging 8.89 1.41%
632.53 100.00%

Baker,2002
… but feed and therefore raw materials are………. WPSA Malaysia
Nov 30 – Dec 1, 2013

COSTS – FARM US$ PER MT LIVE BIRD

DAY OLD CHICK (DOC) US$ %
Parent Stock 5.90 0.93%
Feed 35.65 5.64%
Other 5.68 0.90%
Expenses 14.97 2.37%
62.20 9.83%

LIVE BIRD per MT to PLANT

DOC 62.20 9.83%
Feed 379.27 59.96%
Vaccine 21.93 3.47%
Farm/Transport 72.89 11.52%
536.29 84.78%
The key factors, all have WPSA Malaysia
to be optimised Nov 30 – Dec 1, 2013

Genetics
Given 

Housing Environment

Chick Management
(tying it all together)

Feed and Water Health and Bio security

In Nutrition, WPSA Malaysia
Nov 30 – Dec 1, 2013

the Three Most Expensive Nutrients

are:
1. Energy
2. Amino Acids (protein)
3. Available Phosphorus
 Precision Feeding WPSA Malaysia
Nov 30 – Dec 1, 2013

Broiler optimum
Amino acids (% of feed)
balanced amino
Prestarter
acids

Starter

Grower Withdrawl
Finisher

Age of broiler
 WPSA Malaysia
3 Feeding program for broiler Nov 30 – Dec 1, 2013

1. Maximum growth and feed conversion

2. Reduced cost formulation
3. Maximizing meat production

Cobb (2003)
 WPSA Malaysia
Nov 30 – Dec 1, 2013
 WPSA Malaysia
Nov 30 – Dec 1, 2013
 WPSA Malaysia
Nov 30 – Dec 1, 2013
 WPSA Malaysia
Withdrawal Feed Nov 30 – Dec 1, 2013

• For 2 kg broiler, 25% feed consumed

in 5-7 days prior to slaughter
• Remove drugs, vitamin, mineral, feed
additives 7 days before processing
• Cost reduction can be >2%, and also
protect consumers from residue
 WPSA Malaysia
Separate feeding Nov 30 – Dec 1, 2013

• Male and female are grown

separately
• There is different requirement
between sex especially amino
acids
• Increase profitability
 WPSA Malaysia
Formulation not only Least Cost Nov 30 – Dec 1, 2013

Selecting the proper nutrient density is one of the

primary determinants of profit in growing broilers

• Energy costs make up about 75% of total cost

of producing broilers
• Modern broilers do not adjust feed intake in
direct proportion to dietary energy.
• Formulating diets on basis of least cost per
caloric unit (energy and associated nutrients)
has consistently been shown to result in the
lowest feed cost per unit of gain.

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 WPSA Malaysia
Calorie Conversion Ratio Nov 30 – Dec 1, 2013

Calories per unit of gain

• Eliminates the variability of dietary energy level
in determining nutritional efficiency
• Enables a better comparison of efficiency
between groups differing in dietary energy
• Has become the standard of comparison in
statistical surveys of broiler companies
• Grower bonuses now based on relative
performance versus peer growers.

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 Ratio DThr/Dlys on FCR WPSA Malaysia
Nov 30 – Dec 1, 2013
Bro Grower (14-28 d)

Lys (% dig) Thr (% dig)

1.80 1.80

1.75 1.75

1.70 1.70

1.65 1.65

1.60 1.60

1.55 1.55
1.08 0.76
1.50 1.50
0.84 0.92 1.00 1.08 1.16 1.24 C 0.46 0.54 0.62 0.70 0.78 0.86 C

70

Corzo et al. , 2009

 WPSA Malaysia
Suggested Amino Acid Ratios Nov 30 – Dec 1, 2013

AA Starter Grower Finisher

TSAA 75 76 77

Thr 66 67 68

Val 76 77 77

Ile 71 71 71

Arg 108 108 108

Trp 18 18 18

Dozier, 2012
 WPSA Malaysia
Nov 30 – Dec 1, 2013
 WPSA Malaysia
Quality pellets improve BW and FCR Nov 30 – Dec 1, 2013

BW (g) FCR

740 2.05
The caloric value of good pellets
720 was estimated at 187 kcal/kg!!
2.00

700
38-45 d BW gain (g)

1.95
680

FCR
1.90
660
1.85
640

620 1.80

600 1.75
100 P 80 P 60 P 40 P 20 P Mash

McKinney and Teeter, 2004. Poult. Sci. 83:1165 23

 WPSA Malaysia
Nov 30 – Dec 1, 2013

Effect of Digestible Lysine and Feed Form

on AWG-Trial 1
900
a a
850 cd bc cd cd
d cd
800
grams Mash
Pellet
750
e
e
700

650
0.75 0.85 0.95 1.05 1.15
P=0.0009
Digestible Lysine, %
Beyer, 2009
 WPSA Malaysia
Form of feed by age of broiler Nov 30 – Dec 1, 2013

Age Feed form and size

0 -10 days Sieved crumbs

11 – 28 days 2 – 3mm diameter pellets

29 - process 3 mm diameter pellets

Ross (2002)
Particle Size of Corn and WPSA Malaysia
Nov 30 – Dec 1, 2013
Sorghum & ADG in Broilers

37.0
g
SE 0.3
P-size quad (P < 0.01)
C vs S x P-size lin (P < 0.02)
Sorghum
33.5
Corn

30.0
900 700 500 300
Hancock, 2010
Stress WPSA Malaysia
Nov 30 – Dec 1, 2013

Reduce with housing management

and with nutrition
 WPSA Malaysia
Nov 30 – Dec 1, 2013
 WPSA Malaysia
Key performance indicators Nov 30 – Dec 1, 2013

 Total liveweight marketed

 Total mortality
 Total feed used
 Average liveweight
 Average FCR
 Average age
 Age corrected to standard weight
 FCR corrected to standard weight
 Feed cost per kg liveweight
 Total cost per bird and per kg liveweight
 Maximum biomass (kg liveweight per m2)
Performance (EPEF or IP) different WPSA Malaysia
countries in Asia Nov 30 – Dec 1, 2013
 WPSA Malaysia
Nov 30 – Dec 1, 2013
Sealed vs. Unsealed Side Wall WPSA Malaysia
(University of Georgia) Nov 30 – Dec 1, 2013

 
Koldehoff, 2011. Big Dutchman seminar
 WPSA Malaysia
Nov 30 – Dec 1, 2013

Advance Information and

Technology

33
 WPSA Malaysia
Early Feeding Nov 30 – Dec 1, 2013

Early access to feed:

• Stimulation of intestinal motility (Noy and Sklan, 1998)
• Increased body and organ growth
• Improved livability
• Immune function (Dibner et al., 1998)
• Carcass yields (Noy and Sklan, 1999)
Early feed deprivation:
• Shorter villi and microvilli (Uni, 1999)
• Reduced muscle growth (Vieira and Moran, 1999)
• Reduced lymphocyte colonization (Dibner et al.,
1998; Bar Shira et al, 2005)

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 WPSA Malaysia
Threonine for Immunity Nov 30 – Dec 1, 2013

Average daily temp 30+5oC and Rh in the barn 85+3%

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 WPSA Malaysia
Is Creatine important? Nov 30 – Dec 1, 2013

Payne, 2013
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Potential Benefits of Enzyme WPSA Malaysia
Supplementation Nov 30 – Dec 1, 2013

• Increase feed efficiency

• Decrease gut maintenance cost
• Reduction in endogenous flow and enzyme production
• Improve performance
• Improve litter quality
• Improve bird uniformity
• May also lead to reductions in pathogenic
microflora and improvements in bird health and
welfare
• Decrease production costs!!!
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Effect of High Phytase Levels on 0- WPSA Malaysia
16 d Performance Nov 30 – Dec 1, 2013

BWG FI
650
600
550
Body weight (g)

500
450
400
350
300
250
200
0 2000 4000 6000 8000 10000 12000 14000
FTU/kg

Waldroup, 2013. USGC seminar

Feed Additives Usage WPSA Malaysia
Nov 30 – Dec 1, 2013

•Efficacy: what is the content of FA? What level, Mode of action? Is

it proven scientifically (peer review Journal), do your own trial, other big
guy using it?

•Improve efficiency: what is your farm main problem? Nutrition,

Disease, Management, Genetic? test in your farm using + & - control
with sufficient replicates

•Risk Analyses: what is current data, is it going to affect animal

performance, will FA overcome problem

•Economic return: Cost Addition or Reduction? how much pay back?

Comparison with similar product, require Investment?
 WPSA Malaysia
Conclusion & Recommendations Nov 30 – Dec 1, 2013

• Reduce cost of broiler feed and feeding

• Nutrients, Formulation, Precise Feeding
• Control environments to reduce stress &
diseases
Recommendations:
1. Adopt new technology
2. Benchmark to the leading broiler
3. Always improve Efficiency

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