By News release
June 9, 2015 - The Alberta Pulse Growers (APG) and Saskatchewan Pulse Growers (SPG) are re-launching the Feed Pea Benchmark with additional feed ingredient comparisons for Alberta, Saskatchewan and Manitoba.
"We are pleased to re-launch the Feed Pea Benchmark with updated information current to today's feed rations," said APG Chair Allison Ammeter. "This is a good tool for the marketplace and growers who are looking at a feed option for their field peas."
The benchmark prices are intended for use as a pricing reference for buyers and sellers of feed peas by providing an indication of the "feeding value" of peas. "The prices represent the point at which peas start to become an economically feasible feed ingredient for swine," explains Tim Wiens, Chair of SPG. "The reason swine is used to determine the benchmark is because most of the peas that go to feed markets in Western Canada end up in swine diets."
The Feed Pea Benchmark provides a consistent, unbiased estimate of the feeding value of dry peas in central Alberta (Red Deer and area), central Saskatchewan (Saskatoon and area) and southern Manitoba (Winnipeg and area), based on the value of competing feed ingredients in swine rations. Feed peas trade at various differentials to the benchmark based on local supply/demand, quality differences and other contract terms.
Bi-weekly, tradable prices of the major feed ingredients are collected for the three regions. These prices are then entered into a least cost feed formulation that is typical for grower-finisher swine in Western Canada. A feeding value is then derived for feed peas based on their nutritional characteristics and the prices of the other competing feed ingredients. The least cost feed formulation was reviewed with the assistance of Gibson Capital in consultation with the Prairie Swine Centre and Gowans Feed Consulting.