Distillers Grains and Livestock and Poultry Production

1
Distillers Grains and Livestock and Poultry
Production
Presented by
John D. Lawrence Iowa State University
2
Livestock and Poultry

• Corn as feed
• Distillers grains as feed
• Nutritional value
• Substitution rates
• Economics and implications

3
Animals and Feed Demand

• Animal ag cash receipts in 2005
• US 125.5B, 46 of ag
• Iowa 7.9B, 53 of ag
• Domestic feed is largest corn user
• 5.5-6.1 billion bushels in recent years
• 52-62 of US production

4
Estimated DDGS Potential Usage by Iowa Livestock
Poultry, 2005 Inventory and Production
5
Estimated DDGS Potential Usage by Iowa Livestock
Poultry, 2005 Inventory and Production
6
Estimated Corn Usage

• DDGS for feed 2.3 M ton
• Corn processed 269 M bu
• Iowa planned processed 2,571 M bu
• Additional corn to feed 500 M bu
• For each 1 bushel process to DDGS you need 2 more
  bushels to feed

7
Nutritional Value of DGS

• Different products
• In general, relatively high in
• Crude protein, fat, and fiber
• Value varies with species
• Concentrates what was in kernel
• Nutrients, mycotoxins
• Manure distribution

8
Estimated Value of DDGSper Ton at 2 corn 175
SBM

• Dairy 114.24
• Beef feedlots 108.00
• Layers 104.66
• Poultry 100.09
• Swine grow-finish 96.34

At optimal levels in ration
Source Shurson, U of MN
9
Maximum Inclusion Rates for DDGS in Swine Diets

• Maximum Inclusion
• Nursery pigs (gt 7 kg) 25
• Grow-finish pigs 20
• (higher levels may reduce pork fat quality)
• Gestating sows 50
• Lactating sows 20

Source Shurson, U of MN
10
Performance and Carcass Traits by DDGS in Diet
Whitney, Shurson,. Johnston, Wulf, and Shanks,
JAS, July 2006.
11
Revenue and Return per Head Over Feed Cost by
Treatment
12
Maximum Inclusion Rates for DDGS in Swine Diets

• Most common today is 10
• 200 of DDGS and 3 of limestone
• 160 of corn, 38 of SBM, and 5 of DiCal
• Assumes
• No mycotoxins
• Formulated on a digestible amino acid and
  available phosphorus basis
• Pork fat quality concerns

Source Shurson, U of MN
13
Feedlot Cattle DGS

• Wet distillers grains and solubles
• More valuable than DDGS
• Higher feed value than corn to 40-50 of the
  ration
• Storage and transportation challenge
• Substitutes for corn and protein
• Still need vit min supplement, but no added P

14
Feedlot Cattle DGS

• Inclusion rates
• 20-40 of dry matter is common
• 60 WDGS in research
• Appears to be lower marbling and quality grade at
  levels over 40

15
Optimum Use
Assume 95 of corn price, 0.10/bushel increase
corn price, costs covered, 153 days from Vander
Pol et. al. (2006 Nebraska Research Report)
16
Other Animals

• Dairy
• Maximum inclusion 20 of DMI
• Substitute for corn and protein
• Used in dry cows and heifer growing
• Layers and turkeys
• Maximum inclusion 10
• Substitute for corn and protein

17
Economics of Feeding DGS

• Depends on the price of DGS relative to what is
  being replaced
• Substitutes are positively correlated
• Valued at substitute price
• Price of other ingredients
• X of diet is cheaper
• (1-X) is more costly

18
Hog Cost Savings Example Nov 1, 2006

• Corn 3.00/bu
• SBM 185/ton
• DDGS 95/ton
• Lower feed cost 2.62/ton
• Lower hog cost .90-1.00/hd
• Corn price to offset .10/bu

19
Cattle Cost Savings Example Nov 1, 2006

• Pounds of gain 650/hd
• Corn 3.00/bu
• Supplement 200/ton
• Modified DGS 35/ton
• Lower cost at 40 68/hd
• Corn price to offset 1.50/bu

20
Summary

• Economics depends on
• Inclusion rate
• Price of DDGS relative to corn SBM
• DDGS is global, WDGS is local
• Long term at retail counter
• Monogastrics low inclusion DDGS
• Ruminants high inclusion WDGS
• Pork price increase relative to beef

21
Iowa Needs Both Ethanol and Animal Agriculture

• 100 million gallon ethanol plant
• 37 million bushels of corn
• 80 Iowans directly employed
• 37 million bu corn Direct jobs
• Farrow-finish 800
• or Wean-finish 242
• or Beef feedlot 278

22
Thank you!

• Any Questions?
• www.econ.iastate.edu/faculty/lawrence/