Profit loss can occur if nutrients that are paid for are not present, the full value of nutrients is not received, if nutrients are improperly utilized, or from increased health costs from under-formulation. 50% of the corn and wheat purchased is below the average nutrient content. If variability in feed nutrient content can be economically considered by assigning dollars per Mcal and the feed is assumed to be purchased at a constant price, then with greater variation in nutrients there could be a higher cost. Improved sampling techniques could help to stabilize the nutrient variation; however, this can increase the costs to the buyer or the seller.
A quality insurance program could be useful for identifying problems with the supplier, lab, or livestock producer’s stores, but may be too expensive or impractical. Furthermore, the nutrient quantity in the ingredients does not guarantee that it will be utilized by the livestock, and the effect of local conditions on nutrient values is often overlook in broad recorded values for an ingredient.
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Source: Alberta Pork