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Technical Resources

Open dialogue improves ingredient value chain

Denny, Gordon

Feed production and animal agriculture have always been subject to dynamic market swings in terms of demand and profitability.

Many of the factors affecting market volatility are out of the control of those directly involved in the feed and animal agriculture business. Meat exports, currency exchange rates, feed ingredient prices, consumption trends, government policies, consumer demand and the potential for a food crisis like the recent lean finely textured beef situation are unpredictable.

It is important to manage what can be controlled and to look for areas of improvement in the feed value chain. Areas with significant potential are improved quality and profit enhancement.

Achieving this potential requires strong communication and an open relationship with the providers of the major protein source for animal agriculture in the U.S.: domestic soybean meal processors.