Feed costs represent most of the operating costs associated with raising poultry. Because margins are generally narrow in the poultry industry, it is essential for producers to optimize ration selection.
“Things happening across the globe can change what the futures market is and change what the expected prices are going to be,” said Tristan Bond, data scientist and engineer, Agrinerds.
“When you are a company that is trying to determine how you can maximize profit, there are tools out there that do least cost formulation. We realized you need to take it a step further and look at revenue and profit, because that’s what matters at the end of the day.”
At the 2023 Poultry Tech Summit, Bond will discuss Dynamic Nutritional Profitability software that integrates live commodity pricing through an API with ration formulas and poultry meat and/or egg pricing in order to identify current and estimated future profitability.
The Poultry Tech Summit, scheduled for November 6-8 at the Hilton Atlanta Airport in Atlanta, Georgia, focuses on the transition of innovative technologies into commercial applications to advance the poultry industry.
Registration for this event is now open. Early bird savings are available until September 29th.’
Accounting for feed price variability
Feed prices have been historically volatile due to several factors including inflationary pressure, climate change, COVID-19 and the war in Ukraine.
The software works by looking at live market prices for ration ingredients and products in the poultry industry to make informed decisions for the ration selection process.
As an example, producers may have several rations that have slightly different product yields. Some may be considered as a premium ration that increases the yield of the product, but typically requires more expensive ingredients as compared to the more standard ration options. Changes in the market for the feed ingredients and the products could potentially create a scenario in which it could be advantageous to use the premium ration option to maximize profitability, even if it is not the least cost ration.
It could improve productivity and profitability in the poultry industry by finding optimizations in the ration selection process.
“When feed is 70% of your total operating cost and the margins aren’t as favorable as you’d like them to be, it’s really important that you’re looking for every opportunity that you can to minimize costs,” he explained.
Attend the 2023 Poultry Tech Summit
Join an exclusive international gathering of industry-changing innovators, researchers, entrepreneurs, technology experts, investors and leading poultry producers at the 2023 edition of Poultry Tech Summit on November 6-8 at the Hilton Atlanta Airport in Atlanta, Georgia.
Attendees can expect the same groundbreaking innovation and insightful presentations that made the previous events well-attended with deep dialogue on new prospective solutions and next-generation technologies. Poultry Tech Summit focuses on the transition of innovative technologies into commercial applications to advance the poultry industry.
Registration for this event is now open. Early bird savings are available until September 29th.
