Location: Food Science and Market Quality and Handling Research Unit
Project Number: 6070-43440-013-010-R
Project Type: Reimbursable Cooperative Agreement
Start Date: Jul 1, 2024
End Date: Jun 30, 2025
Objective:
We aim to complete the following objectives:
(1) To compile all layer high-oleic peanut feed formulations from previous studies to analyze the least cost formulations at various inclusion levels (0%, 5%, 10%, 15% and 20%);
(2) To compile all feed conversion ratios from our previous layer high-oleic peanut feeding trials to estimate average feed cost;
(3) Cost comparison of compiled feed and ingredient cost information to market available feed ingredient cost;
(4) Conduct a preliminary economic feasibility analysis to determine the anticipated costs and returns for peanut growers and industry with the market expansion and utilization of high-oleic peanuts as an alternative poultry feed ingredient to produce premium eggs and/or poultry meat.
Approach:
Layer high-oleic peanut diets will be formulated at various inclusion levels of (0%, 5%, 10%, 15% and 20%) using Concept 5 software to meet and/or exceed nutrient requirements for layers. Total feed cost will be estimated based upon least cost formulation utilizing available feed ingredient market cost for comparison. Diets will be formulated using whole unblanched high-oleic peanuts as an alternative to solvent extract defatted soybean meal. A preliminary economic feasibility analysis will be conducted in collaboration with the Department of Agricultural and Resource Economics, NC State University. This analysis will be performed in the following steps: (1) We will aim to determine grower fixed and variable cost of production of high-oleic peanuts; (2) We will aim to examine the available and potential markets for use of high-oleic peanuts as a poultry and/or livestock feed ingredient. The trade area, size and market will be identified in which to sell high-oleic peanuts within the poultry and livestock feed market to determine the number of domestic egg and poultry meat producers. We will aim to examine feed and poultry industry purchasing characteristics within trade area, and poultry feed requirements for grains and oilseeds; (3) We will aim to determine the pricing of high-oleic peanuts as a product within the poultry and/or livestock feed ingredient using available or determined information on costs (current feed formulations) and markets; (4) Lastly, we will aim to use cost, market, and pricing information to calculate potential profits and break-even points for producers of high-oleic peanuts with market expansion.
