A case study on the cost-benefit perspective on the influence of high-protein Distiller's Dried Grains with Solubles (HP-DDGS) pricing and inclusion levels on economic sustainability in pig production

Author(s)

Garbossa, Pollyana Leite Matioli ; Poleti, Mirele Daiana ; Garbossa, Cesar Augusto Pospissil ; Alves, Laya Kannan Silva ; Chaves, Rhuan Filipe ; Cantarelli, Vinicius de Souza ; Ferraz, Jose Bento Sterman

• Document type: Journal article
• Source: LIVESTOCK SCIENCE; v. 292, p. 10-pg., 2024-12-27.

Abstract

Conducting an economic analysis is essential to evaluate the feasibility of including HP-DDGS in feed, aiming to optimize costs and improve economic returns for producers. In this sense, we conducted an economic analysis of high-protein Distiller's Dried Grains with Solubles (HP-DDGS) inclusion in pig diets, aiming to guide pig producers in decision-making for efficient use of production factors and favorable economic outcomes. Performance data were obtained from a nursery-to-finishing experiment with 500 piglets, assigned to one of five HP-DDGS inclusion levels: 0 %, 10 %, 20 %, 30 %, and 40 %. The economic analysis, based on Neoclassical Economic Theory, considered implicit and explicit costs across production settings in two economic distinct scenarios. Additionally, two tools were developed to optimize HP-DDGS inclusion for the best cost-benefit ratio and economic return, focusing on the nutrition cost per kilogram of pig produced. Results indicated that HP-DDGS inclusion in the nursery phase could reduce feed costs and enhance economic returns. Despite being costlier than corn, HP-DDGS offered a better cost-benefit than diets without HP-DDGS. Even when feed costs rose in the scenario where HP-DDGS was pricier than corn and soybean meal, improved feed conversion and higher weights partially offset increased costs, maintaining economic viability. However, in nursery-to-finishing phases, higher HP-DDGS levels led to reduce performance. Under intermediate HP-DDGS pricing, lower production costs compensated for decrease in revenue, resulting in higher profitable. In contrast, high HP-DDGS pricing, coupled with reduced performance, led to economic inefficiency, failing to cover production costs. The challenge of HPDDGS inclusion is balancing price and levels to minimize costs without affecting performance and revenue. Tools developed showed that when HP-DDGS costs up to 97.02 % of soybean meal and 66.75 % above corn, its inclusion at 40 % allows optimal cost-benefit and maximized returns. (AU)

• FAPESP's process: 23/07961-8 - Economic implications of swine welfare legislations: a study of normative instruction 113 in Brazil and Proposition 12 in United States
• Grantee: Laya Kannan Silva Alves
• Support Opportunities: Scholarships abroad - Research Internship - Doctorate
• FAPESP's process: 21/08217-5 - Ensuring proper euthanasia within the swine production systems
• Grantee: Laya Kannan Silva Alves
• Support Opportunities: Scholarships in Brazil - Doctorate