fi - April 2008

On a national basis, the high level of ingredient imports means that local raw material prices are determined by the price level abroad plus the cost of shipping. The new report says the feed milling industry in Ireland has an unfavourable cost structure due to the small size of individual mills, the dispersed nature of production and delivery and a seasonal effect. Whereas poultry feeds and pig feeds represent over 40 percent and 30 percent of all feed tonnage in France and 28 percent and 18 percent in the UK, according to the report, the Irish proportions are only 18 percent and 14 percent respectively. This indicates significant excess capacity in summer when very little cattle feed is sold, so that mill overheads are carried disproportionately by the pig and poultry sectors.

The feed milling
industry in Ireland has
an unfavourable cost
structure.

In their conclusions, the Teagasc team members declare pig feed prices in Ireland to be uncompetitive and they say the Irish compounders “must target a reduction in the pig feed price differential between Ireland and other EU member states.” There are also demands in the report for feed industry costs in Ireland to be benchmarked internally

and against best practices internationally. Furthermore, pig producers are recommended to insist on an independent evaluation of the cost-to-benefit ratio of expensive ingredients and additives before these are included in diets. High nutrient specification diets for lactating sows, weaned pigs and grow/finish pigs should also be evaluated independently, the report says. In addition, it advises Irish piglet-producing units to undertake a re-as-sessment of their feeding programmes with a view to using less of the costly creep, link and weaner diets sold for young pigs.