With increasing feed costs, producers have been asking whether a reduction in slaughter weight, for those finishing at the higher end, may limit some of the very high losses in current net margins. As feed conversion deteriorates progressively with increasing slaughter weight, the feed cost of producing those extra kilogrammes may be greater than the potential ‘savings’ of spreading the other costs over a heavier carcase weight resulting in higher net margins losses.
The Feeding Herd Calculator was developed by BPEX to allow producers to estimate the effects of their feed costs and other costs, slaughter weight and sale value on net margins. Producers can change the FCR appropriate to their system. P2 values are calculated as average for the industry at any given slaughter weight. Adjustments in FCR should accommodate the effects of P2 on feed usage per kg gain.It is important that the Calculator is not used in isolation to make business decisions as it only provides an indication of potential outcomes.
Producers should consult their individual circumstances with their commercial feed representatives and other advisers taking into account slaughter contracts and requirements. The BPEX KT Team would be pleased to provide any assistance.