Dear Friends,

We hope you will find our letter both informative and helpful as you manage your farming operations.

Markets
As we all know, corn and soybean prices have skyrocketed over the last 6 months. The high for corn in Chicago was $5.79 on March 11th and the high for soybeans was $15.86. This past week we have seen a very meaningful pull back with Chicago corn futures for May down to $5.30/bu and May soybean Futures down to $12.57/bu. This of course results in a reduced price for soybean meal with cash meal delivered in truckload quantities (35 – 40 tonnes) in south western Ontario for $392.00.

Because of the billions of dollars moving into commodity funds the trading of these commodities has become irrational. Funds have pushed futures well above prices that users are willing to pay in the cash markets. Processors in the U.S. have gone to “cash markets only” to buy soybeans and will no longer contract for delivery for spring or summer months. For these reasons, Bunge out of Hamilton and ADM out of Windsor are booking soymeal for future delivery on a much inflated basis because of the great uncertainty in what price they may have to pay for soybeans as we move through this year. With the extreme inflating of this marketplace, we advise customers to watch for opportunities to take advantage of any buying opportunity.

Price Perceptions by Bill Gary: Paying the Piper …
Americans are beginning to recognize the sub-prime crisis is the single greatest financial disaster in American history. Nearly all global business magazines and economic commentators have featured the sub-prime crisis and its contagion to other forms of credit. However, Americans have not become overly alarmed. They know the cost of the bailout will be transferred to the next few generations. The sub-prime crisis will be solved just like other economic problems of the past 25 years…. The Federal Reserve will simply print enough money to cover the shortfalls.

We discovered the secret to perpetual prosperity over the past 15 years… Borrow from Peter to pay Paul. Consumers borrow on one credit card to make payments on another. Homeowners borrowed against housing equity to buy new cars. And, the U.S. borrowed multi-billions from Asia to pay for the war and ever increasing domestic spending.

Some economists believe the mountain of debt will come crashing down and another Great Depression will envelop the world. Others argue “bailing out” bad debtors is nothing more than money printing that will lead to an inflationary price spiral similar to the Seventies.

The debate on our economic future will continue as we walk the tightrope between growing inflationary and deflationary forces. Inflation and deflation are two sides of the same coin… The global economy will experience both sides in months and years ahead.

However, economic history has taught us one thing… The Piper Must Always Be Paid! Areas of global economy enjoying overinvestment (real estate, manufacturing and electronics) in recent years will struggle with deflation. Areas of underinvestment (food inventories and production) will benefit as nations struggle to feed the masses at reasonable costs. Americans have enjoyed cheap food for decades and spent incomes on larger homes, bigger cars and luxuries from Asia. Now the food Piper will be paid while other sectors of the economy struggle.

Feed Costs are Soaring. Why?
Feed Grains and Protein- For years the prices of these important feed inputs have languished with producers absorbing the increasing costs of inputs year after year. Costs of fertilizer, pesticides, seed corn and soybeans continues to rise year after year. Farm tractors, tillage equipment, combines have also continued to escalate year after year. Cash prices received for corn and soybeans often have not even covered the cost of production in many of those years. However, through very generous government subsidies Uncle Sam took care of U.S. grain growers enabling them to profit even when the market price was below cost of production. The government programs did result in prosperous times for US producers while producers in many other parts of the world eked out a living with little returns for the “sweat of their brow” because U.S. subsidies kept world grain prices low.

With the increasing demands for energy and cheap oil getting increasingly scarce and costly, the U.S. came up with a new revolutionary scheme; subsidize ethanol production. Now the U.S. farmers no longer are in need of direct subsidies. Corn and soybean have been skyrocketing to record highs. Cost of feed have and are increasing accordingly. Do not expect the costs of grains to decrease very much. The era of cheap feed has passed. Even if ethanol falls out of favour the ever, increasing, demands for food to feed the worlds ever increasing, more prosperous populations will continue to create increasingly huge demands for feed grains and seed. See “Paying the Piper” by Bill Gary in this issue.


Feature Farmer: Ventry Hill Farm – Paul & Dorien DeJong & Family
By Robert Larmer, Grand Valley Fortifiers Ruminant Specialist

There are many different ways to add income to your dairy operation. Whether it is raising elite genetics, raising additional heifers, selling colostrum or, in this young family’s case, producing organic milk. By utilizing these opportunities profits above and beyond that of the conventional quota system can be seen.

In the case of the DeJong family, the decision to move their operation in a different direction and become organic came with the addition of more family members. As Paul and Dorien started having children, they made the decision that it would be safer for them if they were able to minimize the risks present on the farm. These risks were seen to be things like pesticides and antibiotics that could potentially prove harmful to their children. They also wanted to try something different by growing the same crops with more environmentally friendly practices.

Paul and Dorien, along with their four children Sean (13), Peter (11), Maria (9), and Olivia (8), own and operate Ventry Hill Farm near Dundalk where they milk 85 cows organically. With the change of management practices, the goals of the herd have also changed. Ventry Hill strives less for peak production and high averaging cows, but rather for a healthy herd that can maximize their return on investment, particularly by reducing the veterinary and breeding bills.

The herd averages 27 litres of milk with a 4.08% fat and a 3.36% protein. Paul does all he can to store the best possible quality haylage and corn silage as well as some mixed grain and grain corn. The ration consists of 50:50 haylage and corn silage on an as fed basis, dry ground corn, organic soybean meal and Grand Valley Foetifiers premix. Paul relies on the knowledge of the Grand Valley staff to ensure that the ration is properly balanced and that feed supplies are being depleted at an appropriate rate. The purchased premix that Paul is currently using includes a base GVF Organo™ premix with the addition of sodium bicarbonate, kelp meal, vitamin E, Sel-Plex, RS-2 yeast and Biotin. Many of these additives are part of the Organo-Millenium package from GVF.

The cows are housed in a freestall operation with access to the outside. They are fed with a TMR mixer fed out through a conveyor into a bunk running the length of the center of the barn. Milking occurs twice a day in a parlour that has seen many improvements over the years. Dry cows are housed in the same barn as the milking cows to make moving the cattle easier and reducing stress as much as possible. The dry cow program includes haylage, corn silage, some dry hay and GVF Organo™ Dry Cow Premix. Ventry Hill also raises all of their own heifers using some dry hay as well as the forages that are used for the cows. The heifers are supplemented with Organo™ Heifer Premix, and are housed in a fairly new free stall system.

Transitioning the farm to organic was a well thought out process for Paul. He ensured that he was going to be financially able to tolerate lower profitability during the transition period with some reduced production and no premium for the milk. Looking back at the books today, Paul is happy with his decision. 4 years ago when he looked at his costs, 66% of every dollar coming to the farm was spent, and now he is down at 33%, leaving him with a lot more money in his pocket at the end of the day! “The real key here is that we do as much as possible on our own, particularly in growing crops because buying in organic feed inputs can be very expensive. We find that the more we can grow ourselves, the more profitable we are able to be.” The cost of production is closely monitored and right now sits at 11 cents per litre.

Paul is a great producer to work with, always willing to try new things in order to improve the operation whether it is a management change, new feedstuff or a new additive. Anything that will make a positive difference to the bottom line is looked at seriously and researched before being implemented. Paul appreciates what his GVF dairy specialist brings to the team. “I like having the service and knowledge on the farm every month. Having Robert as part of the team here gives me another source of information and the people he has behind him at Grand Valley are a great source of answers too.”

Grand Valley Fortifiers is proud to work with many innovative producers like Paul and hopes to continue improving his bottom line as well as the bottom lines of all other producers we work with.
Feeding Cows the Way Nature Intended
By Mark Bowman, Grand Valley Fortifiers Ruminant Nutritionist

Feeding dairy cows the way nature intended brings to mind pictures of cows grazing comfortably on lush, spacious pastures on a beautiful spring day. The cows that we visualize are comfortable, healthy and productive; they have healthy feet and legs, show strong heats and breed well, and produce plenty of high quality milk.

Now back to reality! How do we feed modern dairy cows, selected for unprecedented high levels of milk production the way nature intended in a dairy industry with ever increasing herd size, year around confinement housing and almost total dependence on stored feeds? Although today’s dairy production system is very different than our idealized memory of the past, we can provide the basic essentials of cow comfort and feeding that are the keys to success today just as they were in the past.

Cow Comfort and Behaviour
Dairy cows in the natural pasture scene have plenty of room to rest on soft earth and can lie down and get up easily without restriction. Moving together as a group, they all tend to graze together and lie down together, all the while maintaining as much personal space as they desire. Smaller, more submissive heifers and cows have plenty of room to avoid the large bully cows and still eat and rest with their herd-mates.

These are the essentials that we want to provide in our modern housing and feeding systems. Stalls need to be large and properly sized, built so that cows can lie down and stand up freely. Sand bedding or very well maintained pasture mattresses with plenty of bedding are essential. And overcrowding must be avoided so that cows can all lie down at the same time. Research shows that transition cows do best when stocking density does not exceed 80 – 85%. There must be plenty of feed bunk space so that all cows can go up and eat together. Lack of bunk space results in smaller submissive cows being pushed back as well as binge eating that contributes to acidosis.

High Quality Forages
Plenty of high quality forages is the nutritional key for high milk production, healthy cows and lower feed costs. There are no substitutes today, just as there were none in the past when pasture was the major forage. High quality forages (low ADF and NDF with highly digestible NDF) allow cows to consume and digest larger amounts of forage, requiring less grain. Cows on high forage diets are less likely to suffer acidosis and go off feed. And the forages provide more of the energy and protein required for high milk and butterfat production at the lowest cost. Growing, harvesting and storing plenty of high quality forages should be the top priority of every dairy producer during the spring through fall seasons.

Corn and Small Grains
HM shelled corn, HM ear corn, dry shelled corn, barley and wheat can all provide the additional starch and energy required for high milk production and to maintain body condition on cows. Feeding the right amount of corn or grain in a TMR, or several times daily in a computer feeder or via top dress, are essential to maintain rumen health, cow health and butterfat content in the milk. Have your forages sampled and tested for nutrient content, including digestible NDF, starch and sugars and your ration balanced by Grand Valley Fortifiers to ensure that the right amount of corn or grain is fed. In this time of high feed prices, growing and storing your own corn will also lower your feed cost.

Eco Lac Protein Supplements
Provide rumen degradable and rumen bypass protein and amino acids required to balance your ration for optimum milk production with Grand Valley Eco Lac Supplements free from animal protein and fat sources – the way that nature intended. Formulated around high quality and palatable soybean meal and corn distillers grains sources, these protein supplements encourage greater feed intake and allow for the highest milk production possible at reasonable cost.

Eco Lac™ Dairy Premixes
Minerals and vitamins are required for milk production, although they are more often associated with cow health and reproduction. Grand Valley Fortifiers Eco Lac™ Dairy Premixes are formulated according to your forage analysis to provide all of the essential minerals and vitamins required for high milk production, health and reproduction. Additional health and performance benefits may be attained through the strategic inclusion of research proven sodium bicarbonate, rumen specific yeast (RS-2TM), Natural EdgeTM plant extracts, chelated minerals, selenium yeast and B-vitamins such as biotin.

The all natural ingredient, RS-2TM Yeast, helps to maintain higher rumen pH and increase frequency of meals, increasing rumen bacteria growth, fibre digestion, milk and butterfat production. Natural EdgeTM, a natural rumen modifier, helps to improve the efficiency of the rumen fermentation, resulting in more energy and protein captured for milk and butterfat production. Chelated (organic) sources of copper, manganese and zinc along with selenium yeast help to enhance the immune system during periods of stress, resulting in lower somatic cell counts and mastitis incidence, improved reproduction, better foot health and higher milk production. Biotin will help improve foot health and increase milk production.

These natural ingredients may be strategically included in your Eco Lac Dairy Premix according to your health, reproduction and production goals via MillenniumTM Dairy Premix, Hoof PakTM, or Repro PakTM. Discuss with your Grand Valley Dairy Specialist the best option to suit your goals.

Milk is the New Oil!
The following are highlights from an article in the Globe and Mail (Sat. Feb. 16th). For those who didn’t see it I believe these facts will excite your imagination regarding the future of agriculture in North America. The article entitled the world’s hottest commodities are in your cereal bowl.

1. Demand from hungry growing Asia is helping fuel. The biggest boom that grain growing farmers have seen in years.

2. India’s consumption of pulses, (peas, lentils, etc.) has doubled in last year. The prices have gone from $400 - $600/ tonne.

3. Asia is adding meat and dairy products to their diets no longer content with a bowl of rice.

4. Demands for milk are rising faster than demands for oil because the rise of the new middle class in Asia.

5. Crop receipts are expected to rise by 40% in 2008 for the biggest year in history.

6. Corn for ethanol has enabled corn and oil seed markets to explode.

7. World grain supplies are at lowest point since the 1970’s and will hit their lowest level since 1948.

8. Some climatologists are suggesting North America could be shaping up for a major drought this year.

9. Feed scarcity is the biggest threat facing the world today.

10. Thirty six nations are facing a food crisis.

11. Prices for feed grains are to remain high and producers are not likely to even think about the many years of low prices of the past

From our perspective we make the following comments:
a) As long as our milk and poultry supply management systems remain in tack providing protection from increasing feed costs then producers of these commodities should enjoy some very good years ahead.

b) Hog producers have been going through very difficult times as high feed costs and very low hog prices are presently resulting in severe financial losses. However, historically high feed prices have always resulted in high hog prices, which we believe will soon begin to materialize.


BMR Sorghum Sudangrass as an Alternative to Corn Silage
By Anton Reijmers, Grand Valley Fortifiers Dairy Specialist

The 2006 cropping year resulted in high levels of toxins in corn and corn silage crops in Southwestern Ontario. As a result, when formulating common dairy cow diets with corn silage, corn and corn distillers grains, high levels of toxins were fed in many herds leading to a negative impact on health, production and reproduction. Frustrated by this challenge of working with compromised corn silage, I conducted extensive research in the winter of 2007 to look for forage alternatives that could replace or reduce the dependency of corn silage in rations, thereby greatly lowering the toxin load on these cows.

Corn Silage has two main advantages; it yields well and has a relatively high energy level allowing concentrate levels of dairy rations to be kept to a minimum. When I searched for an alternative, these two attributes were important to be met or surpassed. Eventually, I stumbled upon a forage crop researched in the last several years by both Cornell University (Ithaca, NY) and W.H. Miner Agricultural Research Institute (Chazy, NY) called Brown Midrib Sorghum X Sudangrass.

Brown Midrib Sorghum X Sudangrass (BMR SXS) is not a new product. It was developed in 1973 as a drought tolerant tropical grass and is NOT a genetically modified organism (GMO). BMR SXS, as a forage crop, is managed as a high-energy grass with no need to wait for grain maturity. It is harvested 2 or 3 times per year depending on date of planting and growing conditions. The Brown Midrib varieties, rather than the conventional Sorghum Sudan crosses, have greatly increased digestibility due to the reduction of indigestible lignin. This increases the available energy to the cow to come close to that of conventional corn silage.

BMR SXS has to be planted with soil temperatures of greater than 60&Mac176;F, which in Southwestern Ontario, is generally in the last weeks of May or the 1st week of June. The first cut will be 50-60 days later in mid to late July. The ideal harvest stand is 36-48 inches tall. The second and third cuts are expected to take 4-5 weeks to grow, bringing the 3rd cut into mid to late September. Depending on the growing season, a fourth cut is not out of the question. All three cuts yield 2.5 tonnes dry matter per acre, which totals similar yields as corn silage would in a season. The later planting date allows for favorable soil preparation conditions, but more importantly it also allows potential for cool season grasses to be harvested as a forage crop, providing even greater yield potential in one season than a corn silage crop alone.

Besides equaling corn silage in both available energy and yield, there is another aspect that makes BMR SXS stand out economically. BMR SXS yields twice as much protein (CP) than corn silage. With proper nitrogen application, BMR SXS averages 16% CP instead of 7-9% CP in corn silage. When replacing corn silage in the ration with BMR SXS, the supplemental protein requirement is greatly reduced. This lowers the cost of purchased protein sources such as soybean meal and distillers grains and makes room for even higher forage levels to be included into dairy rations.

A study by Grant et al. (2006) revealed there was no difference in 3.5% Fat Corrected Milk when corn silage was replaced with BMR SXS when the TMR parameters (starch, CP, NEL) were balanced similarly in the ration, but found a 3 lbs higher dry matter intake (DMI). This ration needed 2 lbs per cow per day less soybean meal, and included 2 lbs per cow per day more corn meal to keep the starch level equal to the corn silage ration. They also found that fat percent was greatly enhanced in the BMR SXS diets (3.45%) versus the corn silage rations (3.15%). This study showed a 28% greater feed efficiency (solids corrected milk/DMI) for the BMR SXS diets over the corn silage diet with rumen pH greatest in the BMR SXS diets. The Grant et al. (2006) study fed extra corn meal to have the rations equal in starch levels for the trial. This may not be necessary, however, when rations are re-formulated to replace corn silage with BMR SXS. According to a summary of recent studies compiled by L.E. Chase (Cornell University) for a presentation at the 2007 Cornell Nutrition Conference (Syracuse, NY), starch is not a required nutrient in ruminant rations. L.E. Chase concluded that rations as low as 15% starch are adequate to support milk production when nonfibre forage sources are used as partial replacement for corn grain. Essentially, when the rumen energy requirement is met by supplying the necessary rumen fermentable carbohydrates (not necessarily starch), the ration is balanced. This may be best illustrated by the Jan 1st, 2005 article written by Fran Howard in the Hay and Forage Grower magazine explaining Guy Clark of New York State’s experience; ‘Clark feeds a mixture of alfalfa haylage and sorghum-sudan silage totaling 80% of his ration dry matter - 60% sorghum-sudan and 20% alfalfa haylage’.
With all my research behind me and sharing the information with several of my customers affected by high toxin levels in their 2006 rations, enough interest was created to plant 50 acres worth in the 2007 growing season between four producers. Most got planted at the end of May and 5 acres didn’t get put in but will be planted this coming growing season. Some applied manure first, others did not. The cost of the seed is similar to corn silage seed but BMR SXS needs no pesticides as it provides good weed control in and by itself if the field is prepared well and it is not affected by corn rootworm. This is great news for organic growers who are restricted from using conventional treatments. For proper growth and protein content in the crop, N application is required before planting and between each cut. Manure application before planting works very well but some extra nitrogen may still be warranted. It is not recommended to apply manure between cuts, as excessive travel will hurt re-growth.

For best results, BMR SXS should be planted with a drill because it needs a planting depth of _-1 inch deep for proper emergence. It will grow slowly up to 8 inches in height, but will speed up after that. As much as 3-4 inches of growth per day can be seen after it gets two feet tall. Your harvest time window, once it reaches about 3 feet tall, is about one week. Waiting too long before cutting, or when the N level in the soil is too low, will reduce protein content quickly to about 12%. This was evident in a second cutting in one of the fields planted. BMR SXS may be cut with conventional mowers and for best dry down, which is critical for forage quality, the mower needs to be adjusted for as wide a swath as possible. Rollers work well to allow plant moisture to escape. Cutting height should be a minimum of 4 inches for proper re-growth. Water removal to 35% DM is expected to take about 6-8 hours in proper drying conditions.

The 2007 growing conditions in Southwestern Ontario, where the farms were located were dryer than usual, yet the re-growth was remarkable due to its ability to grow in dry climates. Two farms harvested 2 cuts and one harvested 3 times. There was a positive attitude from all farmers about the product with great interest to increase acreage in the 2007 growing season. Due to storage practices, the BMR SXS crops have all been fed as partial forage replacement (corn silage and or alfalfa silage) to date. When incorporated in rations, intakes and performance of cows have remained stable; no adverse reactions have been noted.

If you are looking for alternative forage crops that yield well, are palatable, rich in energy and protein allowing for high forage rations, consider using BMR SXS as an option. There are many sorghum sudangrass crosses available, but to get the benefits of what has been discussed, be sure to get the ‘BMR 6’ variety that is photosensitive, when growing it in Southwestern Ontario. For more information on this crop, you are welcome to contact me, Anton Reijmers, Dairy Specialist with Grand Valley Fortifiers at 519-535-8811 or antonreijmers@rogers.com.


Raising the Standard
At Canada’s Outdoor Farm Show in 2007, Grand Valley Fortifiers was pleased to introduce an exciting new opport-unity for Dairy Producers entitled Raising the Standard. Raising the Standard is a draw offering the chance to win one of two cheques for $1000. The cheques are provided directly to a College or University for tuition payment of a son or daughter of the winner. In the case of a young family, the payment was made to a Registered Education Savings Plan (RESP) for tuition once the child(ren) were of post secondary school age. As a nutrition technology company, we at Grand Valley Fortifiers support the education and development of young minds that will allow companies like ourselves to continue to Raise the Standard remaining innovative and leading edge in our respective industries in the future. We are very honoured to be able to play a small role in this as we help support the tuition costs of a couple Ontario families this year.

We are pleased to announce that Brandon Bouwman of Fergus, Ontario was the recipient of the one of these prizes. Brandon is a Grade 11 student at Emmanuel Christian High School and comes from a family of 13. Brandon works on his father Jake’s dairy farm, Harbodale Farms, cleaning the barn, mixing dairy ration, cleaning calf pens and occasionally milking. When he’s not working, Brandon likes to go skiing at Blue Mountain and swimming in the summer. Brandon’s family, the Jake Bouwman Family are proud Ontario Dairy Producers who milk 40 cows and crop 210 acres of corn, soy beans, alfalfa, wheat and cranberry beans. Grand Valley Fortifiers is honoured to contribute this gift towards Brandon’s RESP and help him some day achieve his dream of also becoming a Dairy Producer.


Thought for Today
The two most important celebrations of our Christian faith are Christmas and Easter. As I write this newsletter we look forward to the Holy days of Good Friday and Easter Sunday this coming weekend.

The prophet Isaiah gives us a vivid picture of Jesus, the suffering servant and the events that led up to His death on the cross for our sins. (Isaiah 53)

Easter Sunday on the first day of the week, Mary and the Disciples visited the garden tomb where Christ had been buried only to find it empty for Christ had risen.

The death and resurrection of Jesus, the Son of God offers to all forgiveness of sins, hope in this troubled world and everlasting life to all who embrace and trust in Him.

What a wonderful reason to Celebrate!

---

Dear Friends,


Markets
As we all know, corn and soybean prices have skyrocketed over the last 6 months. The high for
corn in Chicago was $5.79 on March 11th and the high for soybeans was $15.86. This past week we
have seen a very meaningful pull back with Chicago corn futures for May down to $5.30/bu and May soybean Futures down to $12.57/bu. This of course, results in a reduced price for soybean meal with cash meal delivered in truckload quantities (35 – 40 tonnes) in south western Ontario for $392.00.

Because of the billions of dollars moving into commodity funds the trading of these commodities has become irrational. Investment funds have pushed futures well above prices that users are willing to pay in the cash markets. Processors in the U.S. have gone to “cash markets only” to buy soybeans and will no longer contract for delivery for spring or summer months. For these reasons Bunge out of Hamilton and ADM out of Windsor are booking soymeal for future delivery on a much inflated basis because of the great uncertainty in what price they may have to pay for soybeans throughout this year. With the extreme inflating of this marketplace we advise customers to watch for opportunities to take advantage of any buying opportunity.


Price Perceptions by Bill Gary: Paying the Piper …
Americans are beginning to recognize the sub-prime crisis is the single greatest financial disaster in American history. Nearly all global business magazines and economic commentators have featured the sub-prime crisis and its contagion to other forms of credit. However, Americans have not become overly alarmed. They know the cost of the bailout will be transferred to the next few generations. The sub-prime crisis will be solved just like other economic problems of the past 25 years…. The Federal Reserve will simply print enough money to cover the shortfalls.

We discover the secret to perpetual prosperity over the past 15 years… Borrow from Peter to pay Paul. Consumers borrow on one credit card to make payments on another. Homeowners borrowed against housing equity to buy new cars. And, the US borrowed multi-billions from Asia to pay for the war and ever increasing domestic spending.

Some economists believe the mountain of debt will come crashing down and another Great Depression will envelop the world. Others argue “bailing out” bad debtors is nothing more than money printing that will lead to an inflationary price spiral similar to the Seventies.

The debate on our economic future will continue as we walk the tightrope between growing inflationary and deflationary forces. Inflation and deflation are two sides of the same coin… The global economy will experience both sides in months and years ahead.

However, economic history has taught us one thing… The Piper Must Always Be Paid! Areas of global economy enjoying over investment (real estate, manufacturing and electronics) in recent years will struggle with deflation. Areas of under investment (food inventories and production) will benefit as nations struggle to feed the masses at reasonable costs. Americans have enjoyed cheap food for decades and spent incomes on larger homes, bigger cars and luxuries from Asia. Now the food Piper will be paid while other sectors of the economy struggle.


PORCINE PLASMA: Playing with Fire!
In the February 2008 edition of Better Pork Magazine on page 24, Dr. Ernest Sanford D.V.M. presently a swine specialist with Boehringer Ingelheim Vetmedica and much respected Canadian veterinarian has written a very interesting article for all hog producers around the world. The subject of the story is Spray Dried Porcine Plasma (SDPP) and its widespread use as an ingredient in many swine feed formulations and especially early wean rations.

Dr. Sanford reports on three presentations made at the Emerging Disease Symposium held in Krakow (Poland) last summer. The first paper reported on a trial conducted utilizing SDPP at an 8% inclusion rate against a 0% inclusion rate. The blood plasma used in the trial had from 1 - 4 times greater level of the Porcine Circo Virus2 DNA than typically found in blood plasma used in commercial feed. No clinical signs of PCVD were observed during the entire 45 days feeding trial and it was concluded that feeds containing high levels of Porcine Circo Virus DMA did not result in transmission or seroconversion to PCV2.

For the second study the researchers analysed sources of SDPP from China and United States and commercial piglet feed collected in Southern China for the presence of PCV2 DNA. Please note the second study was conducted using mice rather than piglets.

In contrast to the first study the second study clearly showed that infection with Porcine Circo Virus2 took place in the mice which were fed rations spiked with the Spray Dried Porcine Plasma. The control mice fed on non-plasma spiked feed remained negative.

The important point to be made here is that although PCV2 DNA was found in the SDPP, the process used to by this group to inactivate PCV2 did in fact kill the virus, whereas, whatever was done to inactivate the virus by the Chinese group did not inactivate PCV2. The proof of this is in the results reported by the 2 groups. No virus found in the pigs and there was no seroconversion in the first group, whereas for the Chinese group the mice were infected with PCV2 after feeding the SDPP.

Bottom Line - The inactivation process by the Chinese group was inadequate to kill the PCV2.

A third presentation reported on by Dr. Sanford from the Krakow Conference dealt with “High Fever Disease Syndrome” (also called Blue Ear Disease), which has been sweeping through China killing millions of pigs in 2006 and up to the present time. Clinical signs include high fevers (up to 42 degrees Celsius), red discolouration of the skin, anorexia, vomiting, diarrhea and central nervous signs. High morbidity and mortality in growing and finishing hogs is observed, as well as abortions and death in affected sows.

Further studies, as outlined by Dr. Sanford, suggest that a new and highly virulent strain of PRRS might be the main cause of this mystery “High Fever Disease Syndrome” (Blue Ear Disease) in China. He further states that: “I would add this pig disease outbreak in China is cause of great concern to most of us in countries with major pig production”.

Since reading this article I have talked with Dr. Sanford where we discussed some concerns and possible ramifications from the use of potentially viral contaminated Porcine Blood Plasma in piglet and hog rations. They are quite alarming. The fact that the virus from the new Blue Ear Disease was found in the tissues of slaughtered pigs raised new questions. The reports from the Krakow Conference confirm that the inactivation of PCV2 virus in contaminated feeds was unsuccessful by the Chinese group, but not by the other group. The other is the group that makes most of the SDPP that we use in North America.

After reading Dr. Sanford’s article and discussing the concerns raised by the reports from the Krakow Conference it confirms to us that our decision to eliminate Dried Porcine Blood Plasma from all our early weaned piglet feeds and premixes in August 2006 was the right decision. Since that time we no longer have plasma in any of our feeds or in our plant facilities.

Our new, well researched non-plasma early wean feeds and premixes are providing excellent performance as well as peace of mind to all our customers.


Cost Saving Strategies without Compromising Nutrition
By Clarke Walker, COO ~ Grand Valley Fortifiers

With the increased costs of major feed inputs like corn and soya bean meal, livestock nutrition companies and producers alike must evaluate feed cost reducing strategies that do not hinder the performance of the livestock. Getting the most out of expensive corn and soya bean meal must remain the primary goal of producers in these challenging days. The following strategies provide significant savings per tonne of complete feed without sacrificing performance whatsoever.

Strategy #1: Use Phytase
The enzyme phytase releases the bound phosphorous in corn, small grains and soya bean meal and results in a savings of approximately $3.25 per tonne of finished feed.

This savings is equivalent to a reduction in the premix price of $105 per tonne, if the producer is currently using a non-phytase premix with a 31 kg use rate. Phytase is only available in sow, grower, finisher and late starter diets since early starters diets contain minimal additional phosphorous since much of the phosphorous comes from the milk and whey components.

We have utilized phytase for many years in premixes to satisfy nutrient management plans, however it is only recently that it has become a means of reducing feed costs. The savings has come about due to the increased number of phytase suppliers which has resulted in lower phytase prices coupled with the ever increasing feed phosphate prices. The price of feed phosphate has almost doubled in the past year. It is now become imperative that producers utilize phytase in their swine operation.

The cost of phosphorous in feeds and fertilizer is increasing for many reasons but a major contributor has been the United States increasing thirst for ethanol which is produced from corn. This has caused many cropping inputs to go up and in particular, phosphorous rich fertilizers like MAP. The fertilizer MAP that was approximately $475 per tonne in February 2007 has skyrocketed to a replacement cost of approximately $1050. This is an increase of 120%!

This increase in the price of phosphorous containing fertilizers has spilled over into the feed industry where Mono Dicalcium Phosphate which makes up the phosphorous component in many premixes and feeds has gone up 85% since May 2007. Premixes like Super Swine™ which provide 10% phosphorous are almost half mono dicalcium phosphate.

Phosphorous shortages have resulted in feed companies being put on allocation where they cannot buy more than the previous year’s purchases. Phosphorous is in short supply and is an essential component in all swine diets working along with calcium. Calcium and available phosphorous levels should not be reduced as they are important for skeletal structure, muscle contraction, energy metabolism and blood clotting.

Phosphorous is in short supply due to the increasing demands in the fertilizer industry. Feed companies, including Grand Valley Fortifiers, must be prepared to pay the price or the phosphate will be diverted to fertilizer industry where the returns are currently greater.

We understand and are aware that producers are price takers when it comes to shipping your animals. We too have little negotiating power when it comes to purchasing some of our major ingredients, specifically phosphorous.
The increased use of phytase by hog producers will help alleviate the demand for feed grade phosphorous and, at present phosphorous prices, will reduce feed costs by $3.25 per tonne.

Strategy #2: Adding Lysine in Grow/Finish Diets
With the current pricing of corn and soya adding lysine to grower / finisher feeds not containing lysine saves you approximately $4.00 per tonne of finished feed.

The rule of thumb for replacing soya with lysine is as follows:

25kg of soya = 1kg of Lysine + 24kg corn.

The maximum amount of lysine that can be added without additional amino acid supplementation is 1.75 kilograms.

Using current costs for corn, soya and lysine the savings are as follows:

Remove 43.75 kg soya @ .410/kg = -$17.94
Add 42.00 kg corn @ .207/kg = +$8.69
Add 1.75 kg lysine @ 3.00/kg = +$5.25 = Savings of $4.00

Many Grand Valley Fortifiers premixes already contain 1kg of lysine. Producers using these premixes may still add an additional .75 kg of lysine for a savings of $1.70 per tonne of finished feed.

This lysine strategy will increase your premix price but this will be offset by the reduction in your soya bean meal bill giving you a net gain as outlined above.

Strategy #3: Utilizing Homegrown Inputs
There is always a debate as to whether utilizing the corn in livestock operations should be calculated at the cost to produce the corn or whether it should be calculated at market value. However, if the corn in the bin is high moisture corn then the ability to market the corn is limited to livestock feeding. If corn costs $150/ tonne to grow, and purchased corn is currently $207 per tonne, the savings associated with utilizing home grown high moisture corn are $5.90 per tonne of finished feed.

In Summary:
Producers using a non-phytase grower / finisher premix with no added lysine have the potential of saving $7.25 per tonne of finished feed by combining both of these strategies together.

In addition, if producers value home grown corn at $150 then feed costs are reduced by a grand total of $9.15 per tonne of finished feed.

Call your Swine Specialist today to review your current program to determine how these cost savings strategies can help reduce feed costs in your operation! Our customer service / order desk can also provide you with some general details to get you started today!


Reducing Feed Costs
By Jim Ross ~ Chairman, Grand Valley Fortifiers

Feed Costs- What can be done to reduce costs of feeding a hog to market?

There are a number of practical ways to accomplish this goal:

1. Manufacturing feeds on farm will reduce costs by a minimum of $35.00 per tonne and save about $12.00 per hog.

2. Utilize high moisture corn: either grow it or buy it off the field at harvest, reducing the cost of this major ingredient by $20.00 per tonne minimum.

3. Purchasing soybean meal in 35-40 tonne loads will usually save $20.00 per tonne rather than buying in 10 tonne loads.

4. Try to buy premix in larger quantities and in bulk to take advantage of bulk discounts of $30.00 per tonne and quantity discounts of up to $50.00 per tonne.

5. Stop wasting feed. (Read article by Dr. John Carr in this issue)

6. Take advantage of phytase and lysine to save dollars on high cost of calcium phosphate and reduce usage of high priced soy meal. (Read article by Clarke Walker in this issue)

7. Buy premixes, which provide best performance.

In days of low hog prices producers sometimes switch to lower priced premixes to save money. Instead of saving money this decision will likely increase the cost of production. The following example compares the economics of utilizing our Bionic®® Hog Premix versus our Super Swine Premix.

Bionic® Hog Premix Super Swine Premix
Cost per tonne $1024.00 $720.00

Feed Formula
Corn 730 kg 740 kg
Soymeal 230 kg 230 kg
Premix 40 kg 30 kg
1000 kg 1000 kg

Premix Cost/tonne at Feb $40.96 $21.60
Cost of food per tonne $261.00 $243.40
Note: Super Swine Ration Costs $17.60 per tonne less than Bionic® Hog Premix Ration

Feed Conversion 2.65 2.90
Cost Kg. Gain .68 .71

Shipping weight 110 kg 110 kg
Weaner weight 25 kg 25 kg
Kg Gain 85 kg 55 kg

Grower Feed Cost $58.75 $59.92

In this example Bionic® Hog Premix reduced feed cost by $1.13 per hog.

In a 5500 pig per year operation 5500 x $1.13= $6,214 added to bottom line. But let’s not stop there!

Bionic® fed hogs should gain a minimum of 900 gm per day, which equals to 94 days to market. Super Swine fed pigs should gain 800 gm per day which equals to 106 days to market.

At 17 cents per day, barn costs for 12 days equals $2.04 per hog 5500 market hogs @ 2.04= $11,200.00

Further Considerations:
Genetic selection and nutrition work hand in hand to maximize carcass quality resulting in a higher index. Bionic Hog premix was designed to maximize the hogs genetic potential, this may (depending on numerous factors) result in a 2 point increase in index.

• Bionic® Hog index by an average of 2 points.
(assuming 109 index)
• 2% on 10000 hogs = $2.00 per hog
• 5,500 hogs at $2.00 = $11,000 extra income

What Should You Purchase?
Bionic® hog premix at $1,024.00/tonne or Super Swine premix at $720.00/tonne.

Total Extra Dollars by Feeding Bionic® Hog to 5,500 Market Hogs:
• $6,214 reduced feed costs
• $11,200 reduced barn costs
• $11,000 improved index
• Total: $28,414 = $5.17 per market hog

One can always argue the numbers on this example calculation. The point is this–with expensive feed, and high operating costs(hydro, fuel, equipment, building), allowing livestock to get the most of the feed and maximizing the number of animals through the barn results in lower costs of production per kg of pork produced.

Grow it & Know it: Delivering Knowledge
By Paul Ferreira, Field Technical Support Manager ~ Grand Valley Fortifiers

We, at Grand Valley Fortifiers are pleased to introduce “Grow It & Know It” a proprietary biological performance program available to hog producers to provide cost of production information. Knowing the costs in raising hogs is more important than ever before. Over the years capturing biological performance parameters such as Average Daily Gain (ADG), Feed Conversion (FC) and Cost per kg of Gain has been easier said than done in many situations; road blocks due to production flow, feed manufacturing and time has made determining performance very difficult. At Grand Valley Fortifiers we have developed not only the program but the procedures that can simplify capturing data on a wide range of operations from Continuous Flow to All In/All Out production and all methods of feed preparation including Proportioned Mills, Batch Mixers, Liquid Feeds and Complete Feeds. In relation to time, your efforts on tracking pig inventory and feed inventory will be complied by Grand Valley Fortifiers to help save you time and all at no additional cost!

We are very excited to see in the number of customers joining the program and recording data. We currently stand at over 25 producers signed up and the number of production units is higher if we break out nurseries vs. feeder barns as many producers are tracking both. Our original farms have been collecting data since December ’07 and we were able to produce reports for an 8 week period for one of our participants just last week.

We are all excited about the prize at the end…KNOWLEDGE. If we can effectively measure performance, we can then change to improve and then again measure our performance to determine if the change met our anticipated plan. Why can some of these changes have a huge impact on profitability? Let’s look at a few:

Average Daily Gain (ADG)

Start Weight 26 kgs ADG 850 g 800 g
End Weight 115 kgs Days to Market 105 111
Gain 89 kgs Cost @ $.15/d $15.75 $16.65
+ $.90

A slower growth rate of just 50g per day can increase the cost per pig by $.90.

Feed Conversion (FC)

Start Weight 26 kgs FC 2.7:1 2.8:1
End Weight 115 kgs kgs of feed/pig 240.3 249.2
Gain 89 kgs Cost @ $280/t $67.28 $69.78
+ $ 2.50

An increase of Feed Conversion by just 0.1 increases the cost per pig by $2.50.

At today's market conditions we cannot afford to assume the Biological Performance is meeting or exceeding the expectations that we set. We have to know how the animals are performing to allow us to make changes based on facts not assumptions.
The Grow It & Know It™ program allows us to effectively measure the Biological Performance over a wide range of on-farm situations; All/in All/out vs. Continuous Flow, Proportioned Mills vs. Batch Mixers vs. Liquid Feeding…we are yet to run into a situation that we cannot develop a plan to capture data.

If you have any questions regarding the program, please do not hesitate to call your GVF Swine Specialist.


Tips to Avoid Feed Wastage on Farm
By Dr. John Carr DVM ~ Grand Valley Fortifiers Swine Consultant

In a time of record feed prices, it is essential that feed wastage be minimized. It is estimated on the average farm that 10% of feed delivered is wasted. On a 250 sow farrow to finish unit, its possible to have more than 150 tonnes of feed per year wasted - with average consumption at 6.3 tonnes per sow per year. Potential feed wastage starts with the grain harvest and continues until the hog is marketed! This article details some of the areas where this wastage occurs at the farm level and focuses on simple management practices to reduce this waste.

Where is feed wasted?

Sow feeding
The feeding routines practiced in the farrowing, breeding and gestation areas can result in enormous feed wastage. In the farrowing area, attempting to get the sows to eat too fast can result in loss of appetite in the lactating sow. The pig then fails to clean out the feed trough, resulting in mould development and in the worst cases, fly infestation of the feed. Feed problems can result in water availability problems affecting milk supply to the piglets.

In the breeding area, when sows are in oestrus they often will not eat and this results in feed remaining in the feed troughs and being wasted.

In gestation areas feeding routines can be extremely careless resulting in large amounts of feed being wasted on the floor. Combined with poor cleaning routines, this feed becomes soiled. Overfeeding of the gestating sow is extremely common on pig farms. This extra feed is wasted, does not benefit the growing piglets and reduces subsequent feed intake during lactation.

Review culling of underpriveledged pigs.
Pigs which are born small and/or are weaned as a runt, should be carefully reviewed for survivability. Ninety percent of pigs born below 800g die before reaching slaughter weight. Small weak born piglets have feed conversion rate 3.5 to 4.0 instead of 2.4 to 2.6. The feed cost of these animals need careful review.

Avoid feeding unnecessary animals
It is essential that all sows 6 weeks post-mating are actually pregnant. A sow which is discovered not pregnant in week 16 of ‘gestation’ has just consumed 175 kg (2.5x7x10) of feed since mating. On many farms, this can be as many as 7% of sows. On a 250 sow unit this is accounts for 3 tonnes of sow feed a year.

Cull sows
Once the decision to cull a sow is made, ensure that she is culled as soon as possible. Cull sows are eating 2.5 kg a day.


Nursery Barn

Feeder Setup
Adequate feed space
To allow all the pigs to grow evenly it is essential to provide sufficient feeder space for all the pigs in the pen. This is particularly important in the first three days post-weaning.

Note that the newly weaned pig requires 3x longer feed space than is required a week later. This is because newly weaned pigs feed as a group and do not understand the concept of ad lib feeders

Feed storage in Nursery
Creep feed should not be exposed to temperature extremes, if creep feed gets hot, it may take on barn odour due to high milk content in feed. Too many producers store their creep feed inside the hot nursery due to convenience for stockperson.

Management
Use the right feed at the right time It is essential that pigs progressively move to the less expensive diets as soon as possible while maximizing their growth potential. Keeping pigs on the expensive early diets for longer than warranted, increases costs. On several farms, the pigs are kept on expensive weaner diets too long to compensate for the poor feed intake and growth in the first week post-weaning. Carry out regular feed budget audits to ensure that the farm is feeding appropriate levels of feed intake.

Palatability
All feed or ingredients which enter the farm should be tasted by the stockperson in charge of the area and the manager to ensure that feed palatability standards are being met. This should include wet feed ingredients. Do not allow medication to make the feed unpalatable. Discuss this with your veterinarian if you have any concerns.

Nursery & Grower –Finisher Barn
Feeder in wrong position in the pen
When placing the feeder consider the ability of the pig to reach it. Feeders placed in cold corners will often become fouled with urine and faeces as the pigs use the area as a toilet. Feeders placed too close to a divider or other obstacle, a drinker for example may have feed spaces which are inaccessible. Pigs should not have to jump up to gain access to the feeder. This is typically seen when young pigs have to cope with raised feeders.

Feeders placed so that they cannot be easily examined
All feeders should be placed so that the stockperson can easily examine the feeder for leakage, overflowing of feed or soiling.

Feed and drinker position – Misplaced drinkers
It costs feed to have the pigs walk unnecessary distances to the drinkers Pigs like to drink shortly after feeding. If the drinkers are more than 2 metres from the feeder, pigs will walk between the feeder and drinker and carry food in their mouths. This feed will be dropped (and wasted) on the floor and bedding. Ensure that the pigs do not have to cross the sleeping area to get from the feeder to the drinker

Covering feeders
Uncovered feeders contribute up to 30% of the dust in the air. The feeder is exposed to rodents and possibly birds, which can both eat the feed and soil the remaining feed. All feeders should be covered. If the stockperson needs to examine the feed level, ensure that the feeder has a see through area where this can be assessed.

Feeder management - Holes in the feeder
It is imperative that all feeders are examined regularly – at least between batches. Where a feeder is found to have a hole, fix or replace the feeder. Holes that occur over slats cost enormous amounts of money, where chronic feed leakage occurs without trace. Watch for holes can occur in down-pipes and feed systems – sometimes out of sight

Feed quantity available
The adjustment of feeders should be done every day. This is one of the most important jobs for grow/finish stockpeople. It is not acceptable that feeders are allowed excessive feed to the pigs. Feed efficiency can be maximized when the pigs have to work for their feed. Placing less feed in the feeder by lowering the downpipe into the feeder will reduce feed wastage and dust production – although the feed auger may need to run more often. All stockpeople should understand in detail how the feeder works and how to adjust the feed availability. A feeder, which is has been adjusted too far open will also tend to allow the feed to become powder. This can result in feed intake refusal, increased dust contamination of the room, limited feed space and increased respiratory problems in the pigs.

Water in the feeder
Any feeder with an additional waterer should receive careful management. Ensure that the water does not leak and fill the feeder, restricting feed access. Likewise, ensure that feed does not build up and limit water availability. Drinkers in feeders should be considered as feed intake enhancers, not as a specific water supply.

Air temperature and comfort
Ensure that you keep the pigs within their thermocomfort zone. If the pigs are housed too cold feed will be consumed to help keep the pig warm. If the pigs are too hot, feed consumption will drop and therefore growth, but in addition, extra effort will be expended to pant to help the pig loose heat

Hospital pen feeders
The feeders in the hospital pen are often overstocked and under capacity, holding only one or two pigs. This can result in tremendous wastage. Adjust feed in the hospital pen feeders according to the needs of the pigs. Review the pigs in the hospital area. Rectal strictures are not uncommon on pig farms. These pigs will often have ravenous appetites but they will not be suitable for marketing. In the hospital area, tag all pigs and review after 7 and 14 days post entry. Cull quickly all pigs that are not going to be marketable

Gastric ulcer
In general, gastric ulceration occurs because the pig fails to eat over a 24 hour period. If the feed is very fine (<700 m) the feed will then aggravate an existing gastric ulcer. Gastric ulcers result in feed wastage by poor feed digestion and chronic anemia. In addition, the pig is weakened and more prone to secondary infections and bullying by other pigs.

Ileitis and chronic diseases
Ileitis is associated with the bacterium Lawsonia intracellularis. This disease results in chronic feed waste as it increases the thickness of the gut, resulting in less digested feed being absorbed into the pig. This can result in a loss of growth of 40g a day – which at a FCR of 3 is 120g a day of extra feed eaten.

Feeding finishing pigs prior to slaughter
To feed a pig immediately prior to slaughter wastes 2.5 kg per pig sold. In addition, it can make the journey to the slaughterhouse extremely unpleasant for the pigs by inducing vomiting and travel sickness.

Other area in barn to consider
Feed carts and wheelbarrows
If feed is moved around the farm in feed carts or wheelbarrow, ensure that the feed carts or wheel barrow are kept covered at all times to avoid condensation and excessive moisture in barns. Do not overfill feed carts as this often leads to spillage of feed while moving the cart around the farm.

Wastage associated with medications in the feed
Place medicated feed or premix into the correct bin. Ensure that all feed bins are numbered and the driver places the correct feed or premix in the correct feed bin. This will avoid having to empty a feed bin or having to feed medicated ration as we respect the withdrawal times. If you are in need of bin labels, request some from your GVF Swine Specialist.


Feed Costs are Soaring, Why!
Feed Grains and Protein- For years the prices of these important feed inputs have languished with producers absorbing the increasing costs of inputs year after year. Costs of fertilizer, pesticides, seed corn and soybeans continues to rise year after year. Farm tractors, tillage equipment, combines have also continued to escalate year after year. Cash prices received for corn and soybeans often have not even covered the cost of production in many of those years. However, through very generous government subsidies Uncle Sam took care of U.S. grain growers enabling tem to profit even when the market price was below cost of production. The government programs did result in prosperous times for U.S. produces but while producers in many other parts of the world eked out a living with little returns for the “sweat of their brow” U.S. subsidies kept world grain prices low.

With the increasing demands for energy and cheap oil getting increasingly scarce and costly, the U.S. came up with a new revolutionary scheme; subsidize ethanol production. Now the U.S. farmers are no longer in need of direct subsidies. Corn and soybean have been skyrocketing to record highs. Cost of feed have and are increasing accordingly. Do not expect the costs of grains to decrease very much. The era of cheap feeds is past. Even if ethanol falls out of favour, the ever increasing demands for food to feed the worlds ever increasing, more prosperous populations will continue to create increasingly huge demands for feed grains and seed. See “Paying the Piper” by Bill Gary in this issue.


Thought for Today
The two most important celebrations of our Christian faith are Christmas and Easter. As I write this newsletter we are enjoying the Holy days of Good Friday and Easter Sunday this weekend.

The prophet Isaiah gives us a vivid picture of Jesus, the suffering servant and the events that led up to His death on the cross for our sins. (Isaiah 53)

Easter Sunday on the first day of the week, Mary and the Disciples visited the garden tomb where Christ had been buried only to find it empty for Christ had risen.

The death and resurrection of Jesus, the Son of God offers to all forgiveness of sins, hope in this troubled world and everlasting life to all who embrace and trust in Him.

What a wonderful reason to Celebrate!




Ian Ross Jim Ross Clarke Walker Peter Faus

and all our Grand Valley Fortifiers Family