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Feed Ordering and Delivering to Lower Feed Cost
By Dr. Charles Stark, North Carolina State University
The feed ordering system used by an animal production company can impact the cost of feed delivered to the animal. Feed ordering systems which allow human inputs and/or decisions have a greater potential for errors as well as increased costs, lower animal performance, and compromised medication strategies. Substituting feed types and not shipping according to the nutritional plan are the most frequent errors in ordering systems that allows human intervention without multiple approval levels. Manufacturing problems, ingredient delivery issues, and emergency farm orders will always occur within a company; however written policies and procedures for managing these issues will minimize the feed cost associated with substituting the wrong feed. Delivering one truck load of a formula that costs $10/ton more than the formula specified in the nutritional plan will add $250 to the cost of that delivery and thus add $0.25/pig (1,000 pig barn) in feed costs.
Feed delivery costs can increase significantly when trucks are not fully loaded to the legal weight limit. The design and tare weight of the feed delivery equipment will determine the total weight of feed that can be hauled on a load. Selecting the correct type and design of equipment should be based on the condition of the roads, distance to farms, and operating philosophy of the company.
Transportation cost based on tons delivered
to a barn for a long distance delivery.
Tons Delivered |
21 |
23 |
25 |
27 |
Cost/Load, $ |
250 |
250 |
250 |
250 |
Delivery Cost, $/ton |
11.90 |
10.87 |
10.00 |
9.26 |
Additional Cost, $/ton |
2.65 |
1.61 |
0.74 |
0 |
Transportation cost based on tons delivered
to a barn for a short distance delivery.
Tons Delivered |
21 |
23 |
25 |
27 |
Cost/Load, $ |
100 |
100 |
100 |
100 |
Delivery Cost, $/ton |
4.76 |
4.35 |
4.00 |
3.70 |
Additional Cost, $/ton |
1.06 |
0.64 |
0.30 |
0 |
Dr. Charles Stark is an Assistant Professor and Feed Mill Specialist for the North Carolina Cooperative Extension Service.
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