A tabulated cost estimation/project of poor deep litter conditions to a 20,000 flock broiler farm.
| Factor and Cost | Rationale for Costs |
|---|---|
| Ammonia ($430) | When litter conditions deteriorate, ammonia is always a problem. Research has shown that, if ammonia levels are allowed to reach and remain at 50 ppm or above, feed conversion can be increased by 8 points and final body weight decreased by 0.25 lbs. |
| Disease ($120) | Admittedly, this is difficult to estimate, but it is potentially the most costly. One serious disease outbreak can cause economic disaster. It is estimated that disease costs the U.S. broiler industry nearly $500 million/year in mortality, morbidity and medication. A very conservative estimate would be that poor litter conditions are responsible for only 10 percent of these losses. |
| Parasites ($140) | Anticoccidial drugs cost the U.S. poultry industry an estimated $125 million/year. Antihelminthics (de-wormers) cost another $35 million. Considering that initial parasitic loads in built-up litter may increase the likelihood of serious infections, and that wet litter promotes oocyst sporulation, the cost of poor litter conditions is considerable. |
| Condemnations & Downgrades (260) | Several studies have reported that litter conditions significantly affect condemns and grade. Cleaning out has been shown to reduce condemnations by as much as 50 percent. Breast blisters have been shown to be highly correlated with poor litter conditions. |
| Total ($950) | Adding up these estimated losses, we find that poor litter conditions cost producers at least $950 per 20,000 birds produced. Remember, this is a very conservative estimate; actual losses could likely be much greater. |
| * A brief explanation of how these cost figures were calculated is provided at the end of this publication. | |
From Table 2:
| Ammonia: | .08 (8-point increase in feed conversion) |
| x 5 lbs. (live weight of broilers) | |
| x 20,000birds | |
| x $160/ton (feed cost) | |
| $560 | |
| .25 lbs. (weight loss per bird) | |
| x 20,000birds | |
| x $0.06 (lost profit) | |
| $300 | |
| Total $860 | |
| (To be conservative, 50 percent [$430] of the total was used.) | |
| Disease: | $500 million (cost to U.S. industry annually) |
| ÷ 8.5 billion (broilers produced in U.S. annually) | |
| x 20,000 birds | |
| $1176 | |
| (To be conservative, only 10 percent [$118] of the total was used to estimate the cost of litter-released diseases.) | |
| Parasites: | $300 million (cost of anticoccidials and antihelminthics in U.S. annually) |
| ÷ 8.5 billion (broilers produced in U.S. annually) | |
| x 20,000 birds | |
| $705 | |
| (To be conservative, only 20 percent [$140] of the total was used to estimate the cost of litter-released parasitic diseases.) | |
| Condemns & Downgrades | .01 (percent of field condemnations) |
| x 20,000 birds | |
| x 5 lbs. (live weight of broilers) | |
| x .75 (yield) | |
| x $0.40 (cost/lb. to produce) | |
| $300 | |
| .45 (percent downgrades) | |
| x 20,000 birds | |
| x 5 lbs. (live weight of broilers) | |
| x .75 (yield) | |
| x $0.04 (estimated loss per lb. due to lower grade, trim loss) | |
| $1080 | |
| (Fifty percent [$150] of the total cost of condemnations was considered to be related to litter conditions, and, to be conservative, only 10 percent [$108] of downgrade costs was used.) | |
| Note: All costs were rounded to the nearest $10 for use in Table 2. | |
(Source)
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