Feed Cost Math for Buyers: Tonnage, FCR, Landed Cost and Cost per Kg Produced
Feed cost is usually the largest line in animal production, yet many buying decisions are made on ex-works price alone. This guide covers the four calculations that turn a production target into a comparable procurement number: tonnage, FCR scenarios, landed cost and feed cost per kilogram produced.
Short answer · reviewed September 2026
Short answer: Feed Cost Math for Buyers: Tonnage, FCR, Landed Cost and Cost per Kg Produced
Four calculations drive every feed buying decision. Tonnage = production target × FCR. Landed cost per tonne = ex-works price + freight + duties + port and handling. Feed cost per kg produced = landed cost per tonne ÷ 1,000 × FCR. Margin over feed = sale price per kg − feed cost per kg.
Key takeaways
- Four calculations drive every feed buying decision.
- Start from output, not from budget. Multiply the biomass or production target — tonnes of fish harvested, litres of milk, tonnes of liveweight gain — by the expected feed conversion ratio.
- Ex-works price excludes everything that happens after the factory gate.
- The number that competes with your sale price is feed cost per kilogram of production: landed cost per tonne divided by 1,000, multiplied by FCR.
- Subtract feed cost per kilogram from your expected farm-gate price to get margin over feed — the money left for seed or chicks, labor, energy, health and overhead.
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Editorial Team
The direct answer
Four calculations drive every feed buying decision. Tonnage = production target × FCR. Landed cost per tonne = ex-works price + freight + duties + port and handling. Feed cost per kg produced = landed cost per tonne ÷ 1,000 × FCR. Margin over feed = sale price per kg − feed cost per kg. Comparing suppliers on any basis other than landed cost and expected FCR compares the wrong numbers.
Step 1: Calculate the tonnage you actually need
Start from output, not from budget. Multiply the biomass or production target — tonnes of fish harvested, litres of milk, tonnes of liveweight gain — by the expected feed conversion ratio. A farm planning 100 tonnes of tilapia at an FCR of 1.6 needs about 160 tonnes of feed. Run the calculation at a conservative and an optimistic FCR: the difference, often 10–20%, is your procurement risk band and it determines contract flexibility.
Step 2: Compare on landed cost, not ex-works price
Ex-works price excludes everything that happens after the factory gate. Landed cost adds inland freight, ocean freight, insurance, duties, port charges and local delivery. A feed that is 40 per tonne cheaper ex-works can easily land 25 per tonne more expensive after freight and duty. When collecting quotes, fix the Incoterm — CIF or DAP to a named port — so every supplier prices the same scope.
Step 3: Convert to feed cost per kilogram of output
The number that competes with your sale price is feed cost per kilogram of production: landed cost per tonne divided by 1,000, multiplied by FCR. At 1,100 landed per tonne and an FCR of 1.6, feed cost is 1.76 per kilogram harvested. This is where a cheaper feed can cost more: if the cheaper product raises FCR from 1.6 to 1.75, the 'saving' disappears and the cycle actually costs more per kilogram produced.
Step 4: Work margin over feed before you commit
Subtract feed cost per kilogram from your expected farm-gate price to get margin over feed — the money left for seed or chicks, labor, energy, health and overhead. Run the margin at conservative and optimistic FCR and at the high and low ends of the price range. If the cycle only works at the best-case number, the purchase plan is too tight and the RFQ should reflect that risk.
Worked example: 100-tonne tilapia program
Target 100 tonnes harvested, expected FCR 1.6 (range 1.5–1.75): contract volume 160 tonnes, with a planning band of 150–175 tonnes. At 1,100 landed per tonne, the cycle feed budget is about 176,000. Feed cost per kg harvested is 1.76 at base FCR, 1.65 at the optimistic end and 1.93 at the conservative end. Against a farm-gate price of 2.40 per kg, margin over feed ranges from about 0.47 to 0.75 — that spread is what stocking density and feed specification decisions must protect.
From math to quotes
Once tonnage, specification and landed-cost basis are clear, the numbers become an RFQ: volume with tolerance, nutrient specification, Incoterm to a named port, and delivery schedule. Every feed project request is reviewed manually by David / FeedMatch Group, and supplier introductions are made only after internal approval — FeedMatch Group is an independent procurement intermediary, not a feed manufacturer or a feed seller.
Industrial animal feed FAQ
- How do I calculate how much feed I need to buy?
- Multiply your production target (tonnes of fish, shrimp or liveweight gain) by the expected FCR. Run the number at conservative and optimistic FCR to define a contract volume with a realistic tolerance band.
- What is landed cost for feed?
- The full cost of feed delivered to your site or port: ex-works price plus inland and ocean freight, insurance, duties, port charges and local handling. Landed cost — not ex-works price — is the basis for comparing supplier quotes.
- Why can a cheaper feed cost more overall?
- Because feed cost per kg of output = landed cost × FCR. A cheaper feed with a higher FCR raises the true cost per kilogram produced. Compare feeds on cost per unit of production, not price per tonne.
- What is margin over feed?
- Farm-gate sale price per kg minus feed cost per kg produced. It is the money left to cover all other production costs, and it is the number that decides whether a feed specification or price change is worth making.
- Which Incoterm should I request in feed quotes?
- Fix one Incoterm for all suppliers — commonly CIF or DAP to a named port — so every quote covers the same scope and landed-cost comparisons are valid.
Feed industry regions we work with
Feed procurement is local before it is global: raw material basis, freight and installation costs change by region. These are the areas buyers most often name when defining a feed project in English.
United States
Cities and provinces
Iowa · Nebraska · Georgia · Arkansas · Texas · North Carolina
Corn and soybean meal basis with large integrated poultry, swine and dairy operations.
United States →United Kingdom and Ireland
Cities and provinces
East Anglia · Yorkshire · Lincolnshire · Northern Ireland · Munster
Compound feed and imported protein logistics through east coast and Irish Sea ports.
United Kingdom and Ireland →Gulf and East Africa import markets
Cities and provinces
Jeddah · Dubai · Mombasa · Djibouti
Import-driven feed supply where landed cost and port logistics dominate the decision.
Gulf and East Africa import markets →FeedMatch is supplier-neutral. Regional context helps define the requirement; pricing always comes from manufacturer quotations.
Move from insight to procurement
Turn the ideas in this article into a live procurement action — supplier-neutral, buyer-controlled, fully documented.