February 21, 2013

 

Economic value of Rovabio^® enzyme increases with rising raw materials costs

 

NSP Enzymes are known to increase the digestibility of raw materials for monogastric animals, such as rapeseed meals and DDGS, thereby offering an alternative to soybean meals when soy prices shoot up. A study led by Adisseo shows that the economic interest of the enzyme Rovabio^® is all the greater as raw materials are more expensive, whatever the country and the availability of local ingredients.

 

The study is based on the monthly optimisation of a "broiler grower" formula whose nutritional constraints and the raw materials offered are specific to the five countries surveyed: South Africa, Poland, Turkey, Tunisia and France. Starting from a monthly summary of the prices of raw materials, Pascal Thiery, Adisseo's technical manager for Africa and Middle East region, optimised this set of formulas both using Rovabio^® then not using it in order to measure the consequences on the formulation and to calculate the return on investment (ROI).

 

This work first allows the assessment of the economic interest of Rovabio^® in formulas whose nutritional levels are different. For instance, some countries set energy levels over 3100Kcal/kg of Apparent Metabolised Energy (Turkey, South Africa, Poland) while Tunisia only requires 2950Kcal/kg. Likewise, the levels of proteins and amino acids cover a wide range of values going from 18.5% to 22% of crude protein and from 1.07% to 1.30% of lysine.

 

Figure 1: nutritional specifications of the "broiler grower" feeds in the five countries

During the period examined, the price rise of soybean meal was considerable, shooting up in France from less than €300/tonne at the end of 2011 to over €500/tonne in July 2012. In Turkey, the price rocketed from €350/tonne to €650/tonne over one year.

 

The increase in price of soy brought about a general increase in prices of available raw materials. As a result, the formulation of feeds based on the initial criteria entailed a noticeable rise of raw material cost, even when using locally available substitutes to soy. Thus, the raw material cost of the "broiler grower" formula rose from €360/tonne to over €450/tonne in Turkey, and from €275/tonne to €390/tonne in France.

 

Across different countries, the use of Rovabio^® resulted in the reduction of costs, by increasing the value of some raw materials, such as sunflower or rapeseed meals, DDGS, but also cereals as in Tunisia, where Rovabio^® has reduced the price of barley compared to corn, and to introduce some barley in feed, leading to sustainable and significant benefit.

 

For example, using Rovabio^® in a French formula and in the context price of August 2012 dropped the shadow price of barley of more than €50/tonne, and allowed to increase its rate, with a final formula cost reduced by €16/tonne. (Fig 2)

 

Adisseo notes that the economic interest of Rovabio^® is established and increases with raw material prices. In France, the savings on material costs reached €20/tonne in August 2012 when the price of soy reached its peak, against €10/tonne in November 2011. In Tunisia the savings went over €20/tonne for a maximum formula price of €390/tonne.

 

Considering that, if one follows Adisseo recommendations, the return on investment is 8/1 on average during this period in the five countries surveyed and can even reach 20/1 as was the case in Tunisia in August 2012.

 

Therefore, whatever the context of raw material prices and the nutritional level of the formulas, the return on investment of Rovabio^® is clearly demonstrated.