Least cost formulation for Ruminant, Swine and Poultry diets

Publication date: 08-09-2021

SFR is constantly developing and improving knowledge about feedstuff and by-products composition and nutritional requirements. SFR has facilities for laying hens, broilers, dairy cows and swine to develop and evaluate new concepts of production. The SFR feedstuff list contains more than 400 feedstuffs and is updated yearly. The feedstuff list contains standard chemical compositions as well as specific nutrients from SFR based on own research. In addition, the SFR feed recommendations are used for the formulations in the Least Cost Formulation report.

This report provides an overview of the market developments of feedstuffs and feed compositions for poultry, ruminants and swine diets. The feed compositions formulated are based on the most up-to-date information from SFR and current market prices. All of this provides an overview of the feedstuff prices, market trades and feed compositions.

The goal of a least cost formulation is to create the cheapest feed formulation with the added requirements for nutrients and ingredients. The inclusion level of a specific ingredient within a feed depends on the following factors:

  • The nutrient- and ingredient requirements for the specific feed (=min/max constraints)
  • Prices of (alternative) ingredients

With one example ingredient, for which we vary the inclusion price, we can calculate the inclusion level. This is specific per feed and pricelist: for each combination the inclusion level responds uniquely to the ingredient price, as shown below.

The shadow price is the price at which the inclusion is going to change. So, shadow prices tell for which price range an ingredient remains on the same amount or for which price an ingredient becomes interesting.

All research for the SFR feedstuff list & feed recommendations is conducted as part of the commercial program Advanced Feed Package (AFP), designed for feed producing companies. Continuous research is the backbone that supports this. The details of the SFR feedstuff list & feed recommendations are confidential to AFP clients. Due to the extensive application of the AFP knowledge, the use of this (confidential) information results in representative formulations for the market.

If your interested in this service of SFR please feel free to contact your consultant. This service is available for both costumers of SFR and non-customers. The first edition (Q3-2021) is free of charge.

For more info:   Secretariaat@schothorst.nl
Price:                € 635,-/ Year or with consultancy hours



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