Effect of corn and soybean meal price on profitability of control vs low excretion diets of finishing pigs

Scope and method of study. The market pig industry has in some ways been a victim of its own success. As animal density is increasing, so are concerns regarding air and water quality, occupational health, and waste management. Many researchers including those at OSU have begun to investigate dietary supplements with synthetic amino acids and phytase that more closely match the dietary needs of the pigs, reducing the total nitrogen and phosphorus excreted. In the same time producers are facing increase in corn and soybean meal prices. So this research is conducted to see the effects of increased feed cost on two major diets, control diet which is a traditional diet and low excretion diet which is a diet that helps reduce Nitrogen and Phosphorus excreted from excreta of market pigs. Simple budgeting procedure and Economic Simulation model (SIMETAR) was used to investigate the effect of future corn and soybean meal price on profitability of control and low excretion diet of market pigs.;Findings and conclusions. The literatures showed that the total gains could be maintained with either of the diets. With increase in corn prices, the total cost of feeding market pigs was found to be higher for control diet as compared to lower excretion diet. Looking at the soybean meal prices at different levels it was found that the cost of feeding market pigs with the lower excretion diet was less as compared to control diet. Therefore, it was concluded that with increase in price of corn and soybean meal the low excretion diet will still be less costly than the control diet. Alternatively, if corn prices decreases then the low excretion diet will be much less costly than the control diet.