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-Products1. 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 co-products 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

0

50

100

150

200

0 10 20 30 40 50

Level of diet DM (WDG)

Energy (% of corn)

y = -0.96x + 167R2 = 0.32

Feed Efficiency & ADG Response To WDG Inclusion Rate

y = -0.0007x2 + 0.043x + 3.6604

R2 = 0.914

y = 0.0005x2 - 0.0406x + 6.5271

R2 = 0.8867

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

0 10 20 30 40 50

Level of diet DM (WDG)

Performance

ADGF:G

Source: Vander Pol et al., 2006 Nebraska Beef Rep. and 2005 Midwest ASAS

Feed Efficiency & ADG Response To DDG Inclusion Rate

y = -0.0006x2 + 0.0292x + 3.3054

R2 = 0.8625

y = 0.0006x2 - 0.0389x + 6.3466

R2 = 0.6988

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

0 10 20 30 40 50

Level of diet DM (DDGS)

Performance

ADGF:G

Source: Buckner et al., 2007 Nebraska Beef Rep.

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 740 lbs• Fed cattle out-weight 1300 lbs• Days on feed 153 days• DMI 24 lbs• Feed:Gain 6.5 lbs/lb• Yardage cost $0.35/hd/day• Trucking $3.00/loaded m• Corn price $2.76/bu• WDGS price 95% of corn price

(DM basis)

Marginal Return to WDGS Feeding with Varying Corn Prices

0

10

20

30

40

50

0 10 20 30 40 50

WDGS Level

Return ($/hd) $2.76

$3.50

$4.25

$5.00

Distance at 60 miles

-$91.67

-$143.19

-$195.41

-$247.62

Marginal Return to WDGS Feeding with Varying Distances to Plant

0

10

20

30

40

50

0 10 20 30 40 50

WDGS Level

Return ($/hd) 0

30

60

100

Corn at $3.50/bu

-$143.19

Marginal Return to WDGS Feeding with Varying WDGS Prices Relative to Corn

0

10

20

30

40

50

60

0 10 20 30 40 50

WDGS Level

Return ($/hd) 95%

85%

75%

Distance at 60 milesCorn at $3.50/bu

-$143.19

Marginal Return to WCGF Feeding with Varying Corn Prices

0

10

20

30

40

0 10 20 30 40 50

Sweet Bran Level

Return ($/hd) $2.76

$3.50

$4.25

$5.00

Distance at 60 miles

-$91.67

-$143.19

-$195.41

-$247.62

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 co-products

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

0

10

20

30

40

50

60

70

80

90

100

0 30-0 15-15 0-30 30-30

WDGS

WCGF

Source: Buckner et al., 2006

WCGF & WDGS Combination Feeding Trial

Source: Buckner et al., 2006

4.07

4.47 4.56 4.66

4.27

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

CON 30WCGF 30Blend 30WDGS 60Blend

Treatment

ADG, lb

CON

30WCGF

30Blend

30WDGS

60Blend

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

Cattle on Feed, All States, 1000+ Head Feedyards

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Thousand Head

2005

2006

5 Yr Ave

Source: USDA

Seasonal Low in Cattle on Feed…

When WDGS Price Is Lowest

Seasonal Index of Dried Distillers Grains, Nebraska, 2003-2005

40.00

60.00

80.00

100.00

120.00

140.00

160.00

Jan

Feb Mar

AprM

ay Jun

July

AugSep Oct

NovDec

Month

Price Index (% of Annual Avg)

Seasonal Price Index

Seasonal Price Index + 1 Std Dev

Seasonal Price Index - 1 Std Dev

Source: AMS & University of Nebraska-Lincoln

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

Bagginga

Bunker

Grass hay 15% 30-40Wheat straw 12.5 25-32Alfalfa hay 22.5 45-55?DDGS 50 ---ADMCGF 60 ---

a300 PSI.

Source: Erickson & Klopfenstein

Resources

• http://beef.unl.edu

• www.iowabeefcenter.org

• http://www.ddgs.umn.edu/