The invisible ingredient: energy’s impact on feed costs

Amid commodity and labor shortages, it can be easy to take energy for granted. But last February, massive demand for natural gas put such a strain on the system thatKent Nutrition Groupwas unable to maintain the gas pressure necessary to operate equipment at some of its mills.

“Honestly, we don’t put a lot of focus on energy because, yes, there are some rising costs,” but those don’t compare to recent swings in grain and labor costs, Jason Lents, senior director of operations for Kent Nutrition Group, said. But having access to reliable energy in the future, he said, is an area of concern.

Shifts in energy markets around the world have forced many industries — including feed manufacturing — to reconsider not just the amount of energy they use, but when and how they use it. With a growing number of utilities adopting steeper time-of-use rates and implementing curtailment periods,...

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