Feed Efficiency Estimation from Stochastic Feed Requirement Frontier.

Feed accounts 40 to 70 percent of livestock production cost. Therefore, improving feed efficiency of production animals will promote farm profitability. To this end, precise estimation of animal level feed efficiency is important. Considering some limitations of residual feed intake (RFI) as indicator of animal level feed efficiency, an alternative approach is suggested. The approach involves estimation of a stochastic feed requirement frontier (SFRF), which explicitly allows for feed efficiency and statistical noise in the same specification. As a result, a SFRF naturally leads to feed efficiency indicator free from statistical noise. Furthermore, the feed efficiency indicator it generates is nonnegative and it can easily be expressed in terms of surplus feed intake (SFI) caused by feed inefficiency. Simulation experiment was used to illustrate the problems that arise from RFI-based feed efficiency estimation and the improvements that can be expected from the alternative approach. The experimental results showed that RFI tends to overestimate feed efficiency of animals. The overestimation gets worse as the contribution of feed inefficiency to feed intake variation increases. The results from the experiment also showed SFRF provides consistent feed efficiency estimates and associated SFI. Finally, further benefits of the alternative approach in feed efficiency estimation at animal level are presented.