Earn Millions More By Getting Additional Flock to Market

Karl Arnold
 

A recent study evaluating the efficacy of extruded ingredients demonstrated highly impactful feeding benefits for broilers. The study was conducted in 2020 by Iowa State University evaluating four diets fed to broilers. The four soy and corn diets were created by interchanging solvent soybean meal and ground corn, with ExPress® soybean meal and high-shear dry Extruded Corn.
 

The greatest impact to feeding efficiency and financial benefit was seen in comparing the diet using solvent soybean meal & corn vs. diet consisting of ExPress® soybean meal and Extruded Corn.
 

ExPress® soybean meal is an ingredient which has been available in the marketplace since 1990, it is produced using the ExPress® process (extrusion & oil pressing). This study follows multiple University and independent feeding studies which have evaluated and documented positive results when feeding to broilers, layers, swine & dairy.
 

Extruded Corn is a relatively new ingredient produced using Insta-Pro’s high-shear dry extruder. This process has positive impact to increase nutrient availability resulting in better utilization and in this case improved conversion of feed to meat production.
 

The study noted that productivity was seen in the chicks getting off to quick start and a 6.12% improvement in feed conversion throughout the growth stages which contributed to the shortened time to achieve target market weight. Improved F/G conversions are typically noted when using extruded & pressed ingredients from Insta-Pro® processes due to the impact of increased digestibility of protein & energy.
 

The study showed the resulting benefit of feeding ExPress® soybean meal and Extruded Corn in replacement of solvent soybean meal and ground corn resulted in broilers reaching target weight over four days sooner. When annualized would result in the ability to feeding one additional flock thru the same facility and fixed costs.
 

A financial analysis was performed by the company CFO & Nutritionist to calculate the financial benefit from feeding and marketing an additional flock per year. Their analysis was modeled on a 5 million bird flock using market values for the incremental cost to purchase and feed the additional 5M birds to market weight. These costs were subtracted from the incremental revenues from selling the additional flock of five million birds. The analysis considered two scenarios:
 

   a. If broiler producer purchased ExPress® soymeal & IP Extruded Corn from open market.

Or
 

   b. If broiler producer owned a processing facility and produced the ExPress® soymeal & IP Extruded Corn.
 

Under these scenarios the incremental profit generated to the broiler producer was calculated at:
 

   a. $3M/year
 

   b. $5M/year
 

Further analysis was done to evaluate the payback of establishing an ExPress® and Extruded corn facility relative to scenario (b.) noted above, giving an investment payback of 2-5 years.
 

We acknowledge each broiler producer will have differences in flock size and costs, accordingly we offer a free service to perform an analysis based on their specific operation and costs so to determine their individual financial impact.