Week 6

Ration Formulation

Economics

Text Transcript

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• Cost of feed is usually expressed on an as-fed (AF) basis.
  • DM AF $
  • AF DM $
• Converting from DM AF or AF DM can also be particularly useful when comparing prices. A very good example is brewer's grain, which can be wet or dry. Suppose you have two choices: brewer's grain that is 90% DM and $100/T or 30% DM and $25/T.
  • The dry brewer's would cost $111/T DM ($100/T AF x 100% AF / 90% DM)
  • The wet brewer's would cost $83/T DM ($25/T AF x 100% AF / 30% DM)
  • So, the wet brewer's is a better buy.