General News

Welcome to the first newsletter of yet another new year.  I would like to start off by thanking all our clients for their support during 2004, and I trust that you all had a restful period over the festive season.  As many of you will know, last year was the year of travel and it passed by in a blur. This year I intend to spend more time in Southern Africa !

As in the past SPESFEED has donated money to the Avril Elizabeth home in lieu of sending out Christmas cards.  Either we have been removed from many Christmas card lists or this tradition is being superceded by emails and SMS’s.

It has finally happened.  After 16 years of running our offices in Gauteng we have had our first break-in.  All of our desk top computers were stolen.  Luckily we had a recent backup of nearly everything on my notebook.  We have however had problems with our accounting system.  We have had to upgrade our Pastel system to run on new machines, and our most recent backup was scrambled.  Could we ask that you please make sure that your latest statements are correct.

Ingredient Prices

In 2003 we published a figure of ingredient price history.  Here is an update for your interest.  Prices are never as low as poultry producers would like them to be, but in all honesty prices are at a level which would enable most producers to make a fair return.

Commercial Poultry Nutrition in Africa

As you know the book that SPESFEED has put together as course material for our poultry nutrition course contains a lot of useful information for farmers and nutritionists alike.

I have been involved in training in a number of Francophile African countries and through the good offices of Mike Martin of the American Soybean Association, the book is being translated by Prof Jamel Rhakis and his team in Tunisia , and will be edited by Prof Khalid Benabjilil in Morocco .  Hopefully this task will be completed in the near future.

The SPESFEED Formulation Program

Work on the Windows version of the SPESFEED Formulation program is progressing well, though rather slower than was anticipated.  The program layout and screens are complete, as is the database design.  The LP algorithm has been written and is now running correctly.

The good news is, that with additional Windows functionality our old favourite will be easier (and quicker) to use than ever.

Broiler Performance

In February 2002 we ‘translated’ the broiler performance data published by the Department of Avian Medicine, University of Georgia (The Informed Poultry Professional, Feb 2002) for your interest.  These figures were worked on an exchange rate of R 10.00 to the US $. For interest I have redone the exercise using new data and an exchange rate of R 6.00 to the US $. (The Informed Poultry Professional, Sep 2004)

Pellet Size and Broilers

When designing a phase feeding system for broilers, one of the recurring problems is how much of each phase should be fed.  For example, the breeding companies mostly recommend that 10 days of Starter be fed.  In practical terms the amount of Starter that should be used is determined by mundane details such as bin size and the farm manager’s ability to cope with change.  However, of real importance is the size of the pellets being offered to the birds.  The Hubbard breeding company has just published a very useful table in this regard.  I have included a slightly modified version here.

* This is the amount of Starter diet.

It should be remembered that in young birds the beak dimensions mitigate against prehension of large particles and that the gizzard is not as well developed than in older birds McCracken, (2002).  This has important practical implications for broiler producers.  The change from a mash or crumbles to pellets can be problematic.  Sometimes the pellets are too big for the bird weight (beak size).  The birds are simply not able to eat them.  This is often interpreted by farmers as “the pellet being too hard”. 

New EU Regulations

New General Food Law Regulations in the European Union effective 1 January require all feed business operators in Europe to select and implement their own traceability systems, notes Dutch meat board Voorlichtingsbureau Vlees. Businesses are free to choose the exact form of system that most suits their own operation. However, the basic requirement is that products must be traceable one step forward (to the immediate recipient) and one step back (from the immediate supplier) in the production chain. In the case of products received, the system must be able to provide at least the supplier’s name and address and the type of product. For products sold, the system must be able to provide the recipient’s name/address and the product type.

Rick Kleyn

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Thoughts on coccidiosis control and shuttle design

Modern broiler production would not have been possible in the way we do it now, had it not been for pharmaceutical companies discovering the anticoccidial compounds commonly in use. This is quite a frightening thought because should these products become ineffective, broiler production methods will have to change considerably. Perhaps coccidiosis vaccines could become the next phase of control, but this is still uncertain.

Think about this: if drug or vaccination control measures fail then the broiler industry will have to either lower stocking rates to levels that cannot be considered economically feasible or the equipment manufacturers will have a field day – broiler production will have to switch to cages. Imagine the cost impact!

As a result of these consequences, shuttle and rotation programmes are being used as a standard practice all over the world. In Europe all broilers are produced with shuttle programmes.

Apart from the reason of preserving current drugs, shuttle programmes may be used for another reason. Broiler genetics is constantly improving, resulting in ever younger processing ages. The natural coccidiosis cycle, in the presence of ionophores, results in a gradual increase in oocyst counts up to approximately 4 weeks of age, when it decreases again because of the chicken’s immune system taking more control.

In effect shuttle programmes - because of the usage of a chemical in part of the cycle and an ionophore in the other part - are improving coccidiosis control, resulting in improved production parameters.

Planning and designing the rotation of anticoccidials.

When the rotation of anticoccidials is planned the following aspects should be considered:  

Coccidiosis challenges vary seasonally. Oocyst sporulation is highly dependant upon environmental factors such as heat and moisture. The combination of high moisture and summer temperatures are most conducive to high challenge situations. Obviously we will want to use the most effective programmes during this period. Shuttle programmes are in general more effective than straight ionophore usage. In the past, where we rotated between straight and shuttle programmes, shuttle programmes were used in the period of highest challenge. As discussed above, shuttle programmes utilizing both chemicals and ionophores, are now considered standard practice all year round. Most of these shuttles are more or less equivalent in the control they offer, except where resistance against a drug is present. Therefore it becomes less important to ascertain the level of challenge in relation to the programme.

Resistance against anticoccidial products has been extensively discussed in the literature. Suffice to say that it is a very real threat, and where resistance against a product has occurred extreme care should be taken before the same product is reintroduced onto that production unit. In addition the memory of resistance in a coccidial population is variable. However, it may be years before a drug that showed problems with resistance can be reintroduced.

One product requires special consideration in terms of seasonal suitability. Nicarbizin in heat has been described as resulting in mortality at levels as low as 50ppm (*Wiernusz, Teeter – 1991). These products should be reserved for use in the cooler time of the year: late autumn to early spring, when they are quite safe and provide effective control.

Lerbek has been proven to be effective in very high challenge situations and safe at all times of the year. The product has a good history with regards to resistance because it has been promoted for use in shuttle programmes for a maximum of three consecutive grow outs on any site, or one cycle in a straight programme.

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Reducing sow mortality

The target for annual sow mortality is below 5%.  This is commonly exceeded on many farms – with higher mortality often experienced during the summer months.  Causative factors are numerous and the list below is largely based on recommendations by veterinarians Tim Loula and Paul Yeske of the Swine Vet Center in St. Peter , Minnesota.

1. Labour Force -  Try to find employees that have experience, training and feel ownership of the herd.

2. Observation Skills - Help employees learn to observe and recognize when an animal needs to be moved to a pen, started on treatment, or culled.

3. Farm Size - Farms are larger so it will take longer to observe all of the sows.  Individual sow observations are important - this means getting the sow up, putting your hands on the sow to form an opinion.

4. Facility Crowding - Too many pigs and too few sick pens.  

5. Culling Practices - Some sows could be salvaged if they were sold earlier versus waiting in a cull pen.

6. Backfat - The move towards leaner animals can put stress on replacement gilts as they begin to experience pregnancy and lactation.

7. Phenotypic Selection -  Few workers are able to recognize attributes desired for phenotypic selection.  The body structure, condition, and soundness of the feet and legs are a factor in longevity.

8. Artificial Insemination - When a boar mounted a sow, weakness in the sow could be observed.  Articial insemination removes this indicator.  

9. Parity - Sow production peaks during the third and fourth parity.  Younger sows have lower immunity and thus a higher mortality risk while on the other side, older sows will also suffer from higher mortality.

10. Feed Changes - Sows have been receiving a more fine-ground feed in recent years.  The typical once-daily schedule is resulting in increased acute ulcers that lead to mortality or chronic ulcers that cause other health problems.

11. Multiple Site Production - These systems may help to keep disease out of the pens, but they also serve to minimally develop the immune system.  In addition, transportation provides an injury risk.

12. Disease - Today's common diseases such as swine influenza, acute hemorrhagic ileitis and chronic erysiplas also happen to be particularly hard on sows.

13. Charges in Product Use - With the trend to use less in feed antibiotics, sow mortality tends to increase.  It is difficult to say whether routine use of animal-health products in the feed had a masking effect on disease.

14. Physical Injuries - Factors leading to injuries include moving more than 4 animals at once, moving them too quickly, slippery and/or narrow alleyways, and long-distance transport.

15. Heat Stress - Heat stress occurs if the respiration rate increases from the normal rate of 15 to 25 breaths a minute to more then 50.  This normally kicks in if ambient temperatures exceed 29˚ C and is greatly aggravated at high humidity.  Higher temperatures result in reproduction problems such as anoestrus, a drop in conception rate, reduced embryo survival, decreased sperm output, lower sperm quality and higher sow mortality.  If the ambient temperature exceeds 29˚ C, a water spraying and/or fan system must be used to cool sows.

Walter Scharlach  

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Visit to West and Equatorial Africa  

In December last year I visited four African countries in West and Equatorial Africa. Here are some of my impressions of the feed and Agribusiness:  

All of the countries that I have visited have two things in common.  They are all hot and humid, and all are struggling to get their poultry industries, particularly the broiler industry, to be viable.  The reason for this is simple.  Cheap imports are killing them.  

Nigeria , in the same geographical area has placed a ban on all imports of frozen poultry.  There broiler prices have risen to a level that it is now possible for farmers to make a reasonable return.  It is of interest though, that the president of Nigeria (Sonny Obachia) is a poultry farmer in his private capacity.  

My visit started in Cotonou in Benin , after a flight in an old 727 with the tightest seating arrangement I have ever seen.  My host in Benin was Dr Lionel Gbaguidi, a poultry veterinarian who also represents the American Soybean Association.  Although we did not visit any farms, we did conduct a seminar for the local poultry producers that was attended by some 20 producers and/or feed millers.

My visit to Togo was confined to a commute through that country.  The surprise of the day was most certainly the excellent Chinese restaurant where we lunched in Lomé.  

On to Ghana , where in addition to the climate, one has to deal with the traffic in Accra , which even made this Jo’burger long for home.  There were numerous road works in progress and I would imagine that once the new motorway system is fully functional, this will improve dramatically.

In Ghana our first visit was to the feed mill owned by the Greater Accra Poultry Farmers Association, where we met Mr Hammond, the Executive Secretary.  He told us that the association has about 300 members, that they supply some 500 tons of feed and the complete range of medication to their members each month.  The day old chicks are supplied by other commercial hatcheries. When we asked him if the association had a joint marketing policy he answered “it’s each for himself and God for all”.  It is nice to know that producers are the same the world over!

Our second visit was to the farm of Mr Kenneth Quartey, who is also the chairman of the Ghana National Association of Poultry Farmers (GNAPF).  He has a layer operation with two huge environmentally controlled houses.  He rears his own replacement pullets and manufactures his own feed.  All of his eggs are sold through his own depots, and although they are graded, they are not sold packaged as such, but are sold loose by grade.

The last day in  Ghana was spent running a joint seminar with GNAPF and the ASA.  The meeting was attended by some 30 delegates (appropriately on National Farmers Day, which is a public holiday).  It was great to catch up on old friends and to make some new ones.

Both the meetings in Benin and Ghana were characterised by excellent audience participation when it came to question time, something which does not always happen in South Africa .

Gabon is a country that has both oil reserves and extensive hardwood forests (which are fast being cut down by all accounts).  The first impression that one gets when getting in to Libreville - which is the capital city - is just how good the infrastructure is compared to the other countries that I visited.  It is true that Gabon does not have the population pressure that many African countries have.

I was in Gabon to visit the Societe Minoterie et Avicole du Gabon (SMAG).  This is an integrated company with a flour mill, a feed mill and a large layer operation.  Our visit started in the modern computer controlled feed mill and ended on the farm.  I was impressed with the general management of the whole operation and pleasantly surprised at how well the birds (ISA Brown) perform even in what can only be described as adverse conditions.

The sting in the tail!  On our trip home there was still no fuel in Brazzaville , so our plane planned to fuel up in Libreville.  Either the fuel in Libreville was too expensive, or the Captain’s credit card was maxed out, but we were unable to fuel up there and diverted to Ponte-Noire in the Congo for fuel.  The net result – an 8 hour delay!  

Rick Kleyn  

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Growing Broilers under Contract  

We at SPESFEED are frequently asked about the relationship that should exist between contract growers and processors.  Prof. Dan Cunningham from the University of Georgia has written an excellent article on the subject, and I have taken the liberty of shortening it somewhat for this edition of SPESFEED News.  The complete document can be viewed at  

http://pubs.caes.uga.edu/caespubs/pubcd/B1167.htm

Additional information can be found in two books by Dr Larry Cole.  These are entitled “Communication in Poultry Grower Relations” and “Teamwork in Poultry Production” and are available from Watt Publishing.   

Approximately 99 percent of all broilers in the USA are produced under contract, with the remaining production occurring on integrator-owned farms.  Grower contracts are legal written agreements between integrators and growers that provide full and complete disclosure of all terms and conditions affecting grower payment for production of poultry. These include:  

As live birds arrive at a processing plant, inspectors immediately remove those birds that have already died or are suspected of carrying a disease harmful to man. When the accepted birds are killed in the plant, they are again inspected for evidence of downgrading (blisters, bruises, skin tears, or other defects) that might make the bird unattractive or unwholesome as a human food. Only a small percentage of birds will normally be condemned and removed from the processing line.

The Packers and Stockyard Act regulations also require that certain specifics be spelled out in each contract:  

Most contracts are for one flock and may be renewed automatically until cancellation by either party. In some cases, companies are providing long-term contracts to provide more security for long-term investments by growers. Under these circumstances, contracts can still be cancelled due to contractual compliance failures. 

There are both advantages and disadvantages to contract growing.  

Advantages  

	Reduced management responsibilities.
	Less risk for production and less risk for loss of income.
	Relatively fixed income; some insulation from price changes.
	Less operating capital necessary.
	Opportunity to participate in poultry production.
	Opportunity to obtain additional income from the farm.

 

Disadvantages  

	Possibility of limited opportunity for growth.  New building and expansion are dictated by integrators' plans.
	High fixed investment.  Broiler houses with modern equipment currently cost in excess of $120,000 each.
	Pressure to keep up with technological changes in management, housing, and equipment.
	Possible lack of bargaining power.

 

Payment  

 

For his or her investment and labour, the grower receives a contract payment for each flock. The most popular payment is between 3.8 and 4.6 cents per pound of live weight (50 to 60 cents per kg in South African terms).  

 

In addition, contracts usually provide bonus incentives for superior performance.  most integrators rank their growers based on a weighted average production cost per pound of all flocks sold for the week prior to and including the day of slaughter.  A typical incentive adds 0.01 cent per pound for each 0.01 point advantage (relative to the average) that a grower achieves in production costs.

 

Labour

 

Labour includes the grower's labour, some help from family members and relatives, hired labour paid in cash, and labour paid in kind. Return for the grower's labour is included in the payment to the grower. It is the difference between the contract payment and grower's costs to raise the broilers. There is no direct relationship between hours spent in the broiler house and contract payment. Relatively few broiler farms depend on hired labour. Labour paid in kind is an important part of cleanout labour. In this case, custom cleanout service or help is often provided in return for the used litter.

Work in and around the broiler house can be divided into four operations:

 

1. House preparation includes cleaning and disinfection the building and equipment

2. Starting chicks covers the placement and care of baby chicks for the first 10 days.

3. Growing covers the everday chores for raising the chicks from 10 days to marketing.

4. Miscellaneous chores include medicating, vaccinating, repairing equipment, moving grass, removing caked litter, and picking up mortality.

 

The grower is responsible for disposing of the litter and mortality associated with production. Depending on the cleanout schedule, a typical broiler house will produce between 125 and 150 tons of litter material to be disposed of on an annual basis. Broiler litter can be spread on land as a fertilizer or in some cases fed to beef cattle as a feed supplement (this has now been outlawed in the USA ). When used as a fertilizer, a rule of thumb guide allows application of about 4 tons per acre (10 tons per Ha).  

 

Mortality on poultry farms may be handled in several ways. State regulations permit these methods: 1) disposal pits, 2) composting, 3) incineration, 4) rendering, and 5) acid fermentation. Disposal and/or handling must be done within 12 hours after death or discovery.  

Are you contract grower material?  

 

Before deciding to become a contract grower, determine whether or not you possess the attitudes and capabilities to be a successful grower. According to the National Broiler Council, a prospective grower should have the following assets.  

	A desire to raise chickens
	The financial capability to build housing
	Adequate and dependable labour
	Willingness to meet contractual obligations
	A mind for business
	An open mind to accept improvements as new information becomes available

Once you decide you are interested in contract broiler production, the first thing to do is to contact the broiler companies within your area to find out if they are interested in contracting with new producers. Get copies of the company’s specifications for buildings, equipment, scheduling, and contracts. Do not invest in land, buildings, or equipment until you have written assurance from a broiler company that it will offer you a contract to grow broilers for them.  

To make a sound decision, you must learn as much about the business as possible. The more people with whom you talk, the more knowledgeable you will become. 

 Prof Dan Cunningham

University of Georgia

 

 

SPESFEED (Pty) Ltd.

Animal Nutrition Consultants SPESFEED NEWS is published by the consultants at SPESFEED (Pty) Ltd. The purpose of the newsletter is two fold. It serves both as a source of information for those involved in animal agriculture as well as a means for us to maintain contact with out clients. SPESFEED provides a professional technical service to the livestock and animal feed industries. Our aim is to ensure that our clients use optimal production and feeding systems in order to maximise the return on investment. The company has no affiliation to any particular product or supplier. SPESFEED (Pty) Ltd P O Box 48 Rivonia, 2128 South Africa Tel + 27 11 803 2050