Transcript Slide 1

Corn Ethanol Co-Products
For Finishing Beef Cattle
Darrell R. Mark, University of Nebraska–Lincoln
Galen Erickson, University of Nebraska–Lincoln
Crystal Buckner, University of Nebraska–Lincoln
Types of Corn Co-Products
1. Corn gluten feed: wet mill
– Corn bran + steep
– Can be wet or dry
– Moderate crude protein, CP = 16-23%
• 80% of CP is DIP (ruminally degradable)
– Low fat, moderate fiber, TDN = 80
– 101-115% of energy value of dry-rolled corn
– Product variation is significant within and across
plants due to amount of steep added back to the corn
bran
Types of Corn Co-Products
2. Distillers Grains + Solubles: dry mill
–
Distillers Grains (65%) & Solubles (35%) (DM basis)
–
May be wet or dried
–
Higher crude protein, CP = 30%
•
65% UIP (undegraded, “bypass”, protein)
–
High fat (11%), TDN = 70-110
–
Concentrates nutrients 3-fold from corn
• 0.8% P, 0.35-1.0% Sulfur (variable)
Types of Corn Co-Products
3. Condensed distillers soluables: dry mill
–
–
–
–
Also known as “syrup”
35% dry matter but in liquid form
Higher crude protein, CP = 26%
High fat, low fiber, TDN = 110-115
4. Modified DGS are available
–
(35-65% DM)
5. Hybrid wet & dry plant combining corn bran
and distillers solubles  bran cake
–
Example: Dakota Bran Cake
Nutrient Composition of Selected
Corn Milling Co-Products
General Corn Co-Products
Cattle Finishing Comments
• High energy & protein
• Helps control acidosis (no starch in co-products)
• May be able to feed less (or lower quality) roughage
• Inclusion rate may depend on corn processing
method
• High variation in feeding value/composition of coproducts presents challenge for feeding
• WDGS results in better performance than DDGS
Energy Value of WDGS vs DDGS
Fed at 40% of Diet DM
Energy Content of WDGS
Energy (% of corn)
200
150
y = -0.96x + 167
R2 = 0.32
100
50
0
0
10
20
30
Level of diet DM (WDG)
40
50
Feed Efficiency & ADG Response
To WDG Inclusion Rate
Performance
7.0
6.5
6.0
y = 0.0005x2 - 0.0406x + 6.5271
5.5
R2 = 0.8867
5.0
ADG
F:G
4.5
4.0
y = -0.0007x2 + 0.043x + 3.6604
3.5
R2 = 0.914
3.0
2.5
0
10
20
30
Level of diet DM (WDG)
Source: Vander Pol et al., 2006 Nebraska Beef Rep. and 2005 Midwest ASAS
40
50
Feed Efficiency & ADG Response
To DDG Inclusion Rate
Performance
7.0
6.5
6.0
5.5
y = 0.0006x2 - 0.0389x + 6.3466
5.0
ADG
F:G
2
R = 0.6988
4.5
4.0
3.5
y = -0.0006x2 + 0.0292x + 3.3054
3.0
R2 = 0.8625
2.5
0
10
20
30
Level of diet DM (DDGS)
Source: Buckner et al., 2007 Nebraska Beef Rep.
40
50
Economic Issues Associated With
Feeding Ethanol Co-Products
• Performance improvements from feeding WDGS &
WCGF at 30-40% dietary inclusion hedges against
corn price increases
• Cattle biological response to WDGS is quadratic and
response to WCGF is linear
• Feeding wet co-products leads to:
– Increased trucking cost to feedyard
– Increased feeding/handling cost within feedyard
– Fewer days on feed (less yardage/interest cost)
Cattle Feeding Budget Model With
WDGS & WCGF
Inputs
• Dietary ingredients (DM,
inclusion, price)
• Cattle performance (DMI,
feed conversion)
• Trucking distance, size,
cost
• Yardage,
processing/health,
interest rate
Outputs
• ADG & DOF
• Total Costs
– Yardage
– Ration
– Feeding expense
– Co-product hauling
• Net Return
• Return to co-product
feeding
Example
•
•
•
•
•
•
•
•
•
Feeder cattle in-weight
Fed cattle out-weight
Days on feed
DMI
Feed:Gain
Yardage cost
Trucking
Corn price
WDGS price
740 lbs
1300 lbs
153 days
24 lbs
6.5 lbs/lb
$0.35/hd/day
$3.00/loaded m
$2.76/bu
95% of corn price
(DM basis)
Marginal Return to WDGS Feeding
with Varying Corn Prices
Return ($/hd)
$2.76
$3.50
50
$4.25
$5.00
40
30
20
10
-$91.67
-$143.19
-$195.41
-$247.62
0
0
10
20
30
WDGS Level
40
50
Distance at 60 miles
Marginal Return to WDGS Feeding
with Varying Distances to Plant
Return ($/hd)
0
30
50
60
100
40
30
20
10
-$143.19
0
0
Corn at $3.50/bu
10
20
30
WDGS Level
40
50
Marginal Return to WDGS Feeding with
Varying WDGS Prices Relative to Corn
Return ($/hd)
60
95%
85%
75%
50
40
30
20
10
-$143.19 0
0
Corn at $3.50/bu
10
20
30
WDGS Level
40
50
Distance at 60 miles
Marginal Return to WCGF Feeding
with Varying Corn Prices
Return ($/hd)
40
$2.76
$3.50
$4.25
30
$5.00
20
10
-$91.67
-$143.190
-$195.41 0
-$247.62
10
20
30
Sweet Bran Level
40
Distance at 60 miles
50
Budget Model Summary
• Model accounts for growth biology and changing
prices
• At 30% inclusion rate of WDGS, marginal return
most impacted by corn price
– Distance from plant and hauling cost not as
important
• Can evaluate the marginal benefit to multiple coproducts
To Feed More Co-Product
• More ethanol production  need to feed more
co-products
• More than 40% WDGS may add too much fat
and sulfur to the diet
• Possibility: Feed combinations of WDGS &
WCGF
WCGF & WDGS Combination
Feeding Trial
100
90
80
WDGS
WCGF
70
60
50
40
30
20
10
0
0
Source: Buckner et al., 2006
30-0
15-15
0-30
30-30
WCGF & WDGS Combination
Feeding Trial
ADG, lb
5
4.5
4.47
4.56
4.66
4.27
4.07
4
3.5
CON
3
30WCGF
30Blend
2.5
30WDGS
2
60Blend
1.5
1
0.5
0
CON
30WCGF
30Blend
30WDGS
60Blend
Treatment
Source: Buckner et al., 2006
P< 0.05
Challenges
• DGS is most available in late summer
– Seasonally cheapest then too
– Seasonally fewest cattle on feed then too
• Storing wet DGS product
– Material exposed to air spoils in 7-14 days depending on
temperature
– Has low pH and does not ensile but will keep in air-tight
storage for long periods
– Spoilage loss stored in silage bags (Walker et al)
• 20% loss opened and fed day 78-112 post-sealing
• 28% loss opened and fed day 190-257 post sealing
Seasonal Low in Cattle on Feed…
Thousand Head
Cattle on Feed, All States,
1000+ Head Feedyards
13,000
12,000
11,000
10,000
9,000
2005
8,000
2006
7,000
5 Yr Ave
6,000
Jan
Source: USDA
Feb
Mar
Apr
May
Jun
Jul
Month
Aug
Sep
Oct
Nov
Dec
When WDGS Price Is Lowest
Seasonal Index of Dried Distillers Grains, Nebraska,
2003-2005
160.00
Seasonal Price Index
Seasonal Price Index + 1 Std Dev
140.00
Seasonal Price Index - 1 Std Dev
120.00
100.00
80.00
60.00
40.00
Source: AMS & University of Nebraska-Lincoln
Month
Storing WDGS
• Storing wet DGS product
– Often delivered in truck load lots
– Can store wet DGS in bunker, silage bag or in pile
covered with plastic to protect from air
– Can mix with tub-ground forage and stored in bunker or
bag
– Have to have the “mix” right…
Minimum Levels of Roughage To
Mix in WDGS For Storage
Grass hay
Wheat straw
Alfalfa hay
DDGS
ADMCGF
a300
PSI.
Source: Erickson & Klopfenstein
Bagginga
Bunker
15%
12.5
22.5
50
60
30-40
25-32
45-55?
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Resources
• http://beef.unl.edu
• www.iowabeefcenter.org
• http://www.ddgs.umn.edu/