Crop damage makes corn price jump

Crop damage makes corn price jump


After passing the $7 barrier last week continuous rain and flooding in the Midwest of the US have pushed up corn prices further nearing $8 a bushel.


Corn prices crept closer to an unmatched $8 a bushel this week on concerns that damage to cornfields from Midwest flooding is worse than previously thought. The US Department of Agriculture publish its crop estimates later this month, but also suggested it will do a special assessment of how many acres have been lost to massive flooding that struck the Midwest last week.

Estimates of the toll vary widely, from 2 million to 5 million corn acres damaged or destroyed by floodwaters. Corn for December delivery rose as high as $7.85 a bushel on the Chicago Board of Trade before easing back to settle at $7.80, up 4 cents.

In the most-actively traded July contract, prices rose to $7.50 a bushel before falling back to settle 4 cents higher at $7.4625. Since corn in the US accounts for half of the livestock owners’ production costs high corn prices mean consumers eventually will face more expensive meat and chicken. Livestock owners are forced to cull their herds and flocks to cope with rising corn-based animal feed costs.

Strong demand
It is not only the weather that is driving up the prices. Before the floods corn prices were already up more than 80% in the past year, because developing countries like China and India scramble for shrinking grain supplies to feed fast-growing populations and livestock. Demand from US ethanol producers who use corn as their main feedstock has also pushed prices higher, drawing criticism from poor countries.

Counter movements
Record corn prices have already begun to curb demand. Analysts have lowered the US forecast for ethanol capacity to 9.5 billion gallons from 10 billion gallons as the biofuel producers slow production until corn prices ease. Also Taiwan has announced it will buy sorghum and barley as a cheaper way to feed livestock

Phosphate crisis demands more phytase

Phosphate crisis demands more phytase

Microbial phytases have been used for almost 20 years in animal nutrition to release plant-bound phytate phosphorous. Phytases become more important as phosphates become scarcer.
Phytases in diets for monogastric animals can contribute significantly to overcome the current shortage in feed phosphates, according to The European Feed Additives and Premixtures Association (FEFANA). At present in most of feeds standard phytase dose rates are used to replace up to 4.4 kg MCP or 6.4 kg DCP. As shown in numerous trials, increasing phytase above these standard levels, which is already authorized under EU law, can allow higher amounts of inorganic phosphates to be substituted.

Overcome shortages
The overall use of microbial phytases in monogastric feed, combined with an increase in dose rates, are an attractive option to supply more digestible phosphorous to livestock and to overcome the shortage in mineral phosphates without imposing an additional risk to the environment and the food chain. The significant reduction in phosphorus and trace element excretion by the animals would also be relevant.

Increased demand
The current scarcity of feed phosphates seems to find its roots in several factors.One factor is the new demand for biofuel crops, which has led to a sharp increase in the acreage of cereal crops being planted, and consequently in the amount of fertiliser being used. Secondly, the increased standard of living in countries such asIndia and China comes with all kinds of side-effects. For instance, more people can afford to use commercial washing powders, and since phosphates are used in washing powder, this represents an additional requirement for a product that is already in short supply. Also the rock phosphate reserves in Morocco and Tunisia are running low; some scientists are warning that this could happen in less than a hundred years.

Phytase helps win the fight for dietary phosphorus

Phytase helps win the fight for dietary phosphorus


Adding more phytase to feed presents pig and poultry producers with an opportunity to help offset some of the recent increase in feed phosphate prices, explains Danisco Animal Nutrition.

As the demand for phosphate fertilizers continues to rise to meet increases in global crop production to feed developing nations and produce ethanol, feed producers face the challenge of sourcing sufficient quantities of feed phosphates to meet animal requirements.

Feed phosphate prices have rocketed in recent months, reflecting the imbalance between global supply and demand. The UK's Agricultural Industries Confederation has recently reported that over the coming months supplies of feed phosphate will continue to be limited, which means that the price of feed phosphate will continue to rise.

New generation bacterial phytases have been shown to be more effective at releasing plant-bound phytate phosphorus than traditional fungal phytases. At a standard inclusion rate of 500 FTUs/kg feed, Danisco’s bacterial phytase (Phyzyme XP) can replace an additional 1.3 kg dicalcium phosphate (DCP) in pig and broiler feed formulations, compared to traditional fungal phytases.

“With the current phenomenal rise in the price of feed phosphates, producers should consider increasing the inclusion of phytase in their feed”, explains Dr Peter Plumstead, Danisco’s Technical Services Manager.

“We have a wealth of data to show that doubling the dose of phytase in pig and poultry feed allows at least an additional 1.9 kg dicalcium phosphate to be removed from the feed, without negatively affecting animal performance,” Peter continues.

500 FTUs /kg feed tends to be the standard phytase inclusion rate in broiler and pig feeds and 300 FTUs/kg feed for layer feeds. With current DCP prices at around €550/tonne, the economic optimum phytase inclusion rate is currently around 1000 FTUs/kg feed for broiler and young pig feeds and 600 FTUs/kg feed for layer diets.

“1000 FTUs/kg feed will currently reduce broiler feed costs by around €4.60/tonne. This allows a further 17% reduction in dicalcium phosphate, resulting in an additional feed cost saving of €0.60/tonne compared to the standard inclusion rate of 500 FTUs/kg feed. Increasing the phytase dose to 600 FTUs/kg feed will allow layer producers to further reduce their feed formulations costs by around €0.53/tonne, reducing dicalcium phosphate inclusion by around 30%” Peter concludes.

Danisco Animal Nutrition (www.danisco.com/animalnutrition), a business unit of leading global food ingredient specialist Danisco A/S (Denmark), pioneered the development and use of enzymes and betaine in animal nutrition. Its products are now widely used by poultry and pig producers throughout the world. The company’s mission is to deliver innovative, sustainable solutions that increase efficiency and safety of the food production chain in an environmentally sensitive way.