Why purchase price alone can mislead poultry feed decisions

25 February 2026

6 minute read

By: Sarah Mikesell

North America

With feed accounting for the largest share of poultry production costs, it’s no surprise that purchase price often dominates ingredient decisions. Protein sources are frequently compared on a dollars-per-ton basis, and alternative ingredients can appear attractive when markets are volatile and margins are tight.

Dr. Tom D’Alfonso, Worldwide Director of Animal Nutrition at the U.S. Soybean Export Council (USSEC), says that narrow view can obscure the true economics of poultry feed formulation. Looking beyond purchase price to the value, digestibility and consistency of nutrients is increasingly important as modern poultry genetics demand precision nutrition to help birds reach their full potential.

Feed formulation, he argues, is evolving beyond least-cost calculations toward a more comprehensive view of ingredient value – one that recognizes how nutrient quality, digestibility and consistency translate directly into bird performance, uniformity and profitability. 

Moving past least-cost thinking

Many producers and nutritionists are trained to evaluate feed costs by the price of ingredients per ton. While that approach may simplify purchasing decisions, D’Alfonso said it fails to account for how nutrients are actually utilized by the bird.

He pointed to soybean meal derived from U.S. Soy as a foundational ingredient in poultry diets, not simply because it supplies protein, but because it delivers highly digestible essential amino acids and metabolizable energy that drive performance.

"You’re counting on essential amino acids being highly digestible like lysine, methionine, threonine, tryptophan,” D’Alfonso said. “You’re counting on the calories being metabolizable. U.S. Soy – that one ingredient provides the foundation for the entire poultry diet.”

In traditional least-cost formulation, the emphasis is placed on minimizing feed cost per ton. But D’Alfonso noted that this approach can unintentionally downplay the importance of nutrient digestibility and utilization – factors that directly affect growth rate, feed conversion and flock uniformity.

“One way of thinking about feed formulation and many nutritionists are starting to think about this differently, is not looking at the least cost diet per ton of feed, but to look at the value of the nutrients in those ingredients that are leading to animal performance,” he said. 

“There are some nutrients in soybean meal that we don't formulate on like some exciting functional compounds, including isoflavones, saponins and bioactive peptides that are enhancing the digestive system and the immune system.”

Industry research is underway to learn more about functional compounds and how they impact poultry and pig diets. Nutritionists and researchers are also looking at how to formulate poultry diets that provide a better digestive process in the animal while providing high quality nutrients. 

“Also, there are now ways to formulate diets to maximize predicted profitability by taking into account the performance of the animals at the same time you're selecting the ingredients,” he noted. “So, these are some of the most exciting things going on in feed formulation right now.” 

Digestibility changes the math

When feed costs are evaluated on a digestible nutrient basis rather than purchase price alone, the economics of soybean meal can shift significantly. D’Alfonso explained that soybean meal derived from U.S. Soy delivers a consistent bundle of nutrients that poultry diets depend on.

“When we consider what is the highest quality protein ingredient you can have in the diet, the answer is soybean meal derived from U.S. Soy,” he said. “It provides a bundle of nutrients, including all of the essential amino acids at a high level of digestibility and consistency.”

Digestibility plays a central role in determining how efficiently birds convert feed into body weight and meat yield. Ingredients that appear cheaper on paper may ultimately cost more if lower digestibility compromises performance.

“Soybean meal made from U.S. Soy has as many calories per kilogram or pound as corn,” D’Alfonso said, underscoring its contribution not just as a protein source, but as an energy ingredient as well.

As poultry genetics continue to advance, the margin for error in amino acid balance and energy density becomes smaller. 

“Our research over the last decade or so has shown that it’s today’s animal genetics that are able to convert dietary protein and nitrogen into useful compounds for animal growth and animal protein production,” he said. “For animals to reach their genetic potential, you need to feed high-quality ingredients.”

The hidden costs of cheaper alternatives

Alternative protein sources such as dried distillers grains, sunflower meal or palm kernel meal may appear attractive when their purchase price is lower. However, D’Alfonso cautioned that variability in nutrient composition and digestibility can undermine performance in broiler diets that are highly sensitive to amino acid balance and energy-to-lysine ratios.

“It’s so common for our industry to look at reducing the cost of feed,” he said. “That’s a natural thing to do, but we have to start looking at the cost of animals not performing well. As long as animal protein is worth more than animal feed, it’s better to focus on getting the animals to reach their genetic potential with high quality feed ingredients.”

While soybean meal derived from U.S. Soy may carry a slightly higher purchase price than some alternatives, he argued that the downstream consequences of lower performance must be considered.

“Pay me now or pay me later,” D’Alfonso said. “If you’re trying to lower the cost by choosing a bunch of different, highly variable ingredients with low digestibility, you’re going to pay for it at the processing plant.”

He added that variability in growth rate, uniformity and feed conversion ultimately shows up in processing efficiency and carcass consistency – costs that are rarely reflected in ingredient price comparisons or considered when making purchasing decisions.

Consistency from field to feed

A recurring theme in D’Alfonso’s analysis is consistency – not just in nutrient composition, but throughout the entire supply chain. He described this as a “dirt to dinner” perspective that begins with how soybeans are grown and continues through feed mills and animal performance.

According to D’Alfonso, U.S. Soy farmers play a critical role in delivering that consistency through sustainable agronomic practices that reduce variability at the source.

“The U.S. Soy farmer is producing the highest quality protein and energy ingredient in the poultry diet in a sustainable manner,” he said. “And they’re doing so because the sustainability practices bring payback to them and all the players downstream.”

He pointed to precision agriculture technologies, such as GPS-guided input application, as an example of practices that improve efficiency while reducing variability in crop production.

“Not only does that reduce the input costs and reduce waste, which is a great sustainability practice, but it also reduces the variability,” D’Alfonso said. “Our U.S. Soy farmers are early adopters of this technology and other sustainable practices.” 

Supply-chain advantages matter

Beyond farming practices, D’Alfonso highlighted differences in soy harvesting that affect soybean meal quality. In the United States, soybeans are typically dried naturally in the field, resulting in more consistent moisture levels throughout the supply chain. 

By contrast, soybeans produced in tropical regions like Brazil typically require mechanical drying after they come off the field, introducing heat damage and inconsistent levels of moisture. That variability can affect processing and feed quality.

“U.S. Soy harvest practices bring value all the way to the crusher, all the way to the feed mill, all the way to the feed trough and the animal,” D’Alfonso said.

That consistency, he added, supports predictable diet formulation and allows birds to receive stable levels of essential amino acids and energy which are prerequisites for efficient feed conversion.

“When you have highly variable ingredients, animals don’t perform as well,” he said. “Having a consistent diet means the animals will convert more efficiently.”

Rethinking ingredient value

D’Alfonso believes ingredient decisions must evolve beyond purchase price alone. Feed formulation is no longer just about meeting minimum nutrient requirements at the lowest cost. It is about selecting ingredients that enable birds to perform to their genetic potential while minimizing variability and inefficiency throughout the value chain.

By evaluating soybean meal on a digestible nutrient basis, poultry producers can gain a clearer picture of true feed value.

In that context, soybean meal derived from U.S. Soy offers more than a competitive price. It delivers reliable digestibility, consistent nutrient composition and performance outcomes that extend well beyond the feed mill, ultimately supporting profitability at the farm and for processors alike.

If you'd like to learn more, visit ussec.org for the latest research and resources. This information is partially funded by the U.S. Soy Checkoff.