Jerry Faber Archer Daniels Midland Company

Publish Date: March 25, 2010

Feed costs represent over 75% of the cost of raising pigs, and producers have many feed purchasing and production options to consider. Swine producers may: 1) choose to buy feed from independent feed mills, mills of national firms, or cooperatives; 2) buy premixes, base mixes, and/or supplements from various companies who also provide nutritional and technical expertise on the proper mixing and feeding of these products; 3) purchase individual raw materials and mix them to their own specifications; or 4) use a combination of these purchasing methods. However, many other services have been traditionally provided by feed companies, and their value must be taken into consideration as well when determining where to purchase feed. Ultimately, the final decision on these alternatives is in the producers’ hands, and it can have a tremendous impact on their profitability.