Renewable Energy Inservice

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Renewable Energy Inservice Feed Potential of
Biofuels Co-Products
Harold Harpster Dairy and Animal Science Penn
State
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DEALING WITH 4 CORN and 10 BEANS
!
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The following is a complete updated listing of
cheap, easily managed alternatives for corn for
your livestock rations.
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Table 2. Comparison of Grain and Meals from
Oilseeds.
Grain Soybean Canola Sunflower Expected
yield, lbs/acre 3000 3500
2500 Analysis, DM basis, Crude
Prot 39.2 20.5 19.2 Fat 19.2 40.5 41.9 TDN
101.0 127.5 122.0 Meal Soybean Canola
Sunflower Analysis, DM basis, Crude
Prot 53.8 37.8 28.4 Fat 1.1 5.4 1.4 TDN 8
1.4 69.9 59.9 Lysine 3.32 2.14 1.27
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EVERYBODY IS TALKIN ABOUT CORN!!

• FROM
• There wont be any corn left to feed
• livestock!!
• TO
• Half these new ethanol plants will be broke
  within 5 years !!

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Economics are changing FAST!!

• Year DDG Corn
• Jan 2006 122 /T
  2.30
• Jan 2007 146/T
  4.20
• Oct 2007 150-
  4.00
• 200

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Feedstuff

• November 5, 2007
• Tight Ethanol Margins Expected to Continue
• Industry in cooling off period
• Construction/expansion pullbacks
• More ethanol supply then blender capacity

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35 billion gallons of alternative fuels in the
next 10 years..
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Ethanol?The original concept was really good.
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Now this is high tech !!!
( Probably got bottled !! )
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First US Study Distillers Grains fed to
Cattle 1907!
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Dry Distillers
Year Million Tons 1998 1 2006 10 2010 16
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USE LEVELS
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Corn Distillers Grains
Maximum Inclusion Levels ( of
DM) Beef 10-20 Dairy 20-25 Poultry 10-15 Swine
20-50 (gestation) Sheep 10-20 See handout
for more details
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CONCERNS

• Nutrient Composition

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Remember, when corn is fermented the starch is
used and other nutrients are CONCENTRATED

• Crude Protein- a good thing at proper levels
• Fat -ruminants tolerate a total of about 7
• Phosphorus Can lead to urinary calculi in males
  and land application problems in manure (nutrient
  management plans)

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Table 1. Comparison of Corn Grain and Corn
Distillers Grains.
Corn Distillers Analysis, DM basis, Corn
Grain Grain with Solubles Starch 70.0 4.0 Cr
ude Prot 9.4 30.0 NDF 9.5 40.0 Phos 0.3 0.
8 Fat 4.2 12.0 TDN 88.7 79.5
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CONCERNS

• Variability !

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DDGS varies in nutrient content and
digestibility, color, and particle size among US
sources
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Variation in DDGS Nutrient Composition
Mean Avg CV Range in CV Crude
Prot 30.2 6.4 2.1-10.2 Fat 10.9 7.8 4.4-10.
5 NDF 42.1 14.3 2.4-23.1 P 0.89 11.7 3.1-15
.3 12 samples 10 distilleries. JAS 2002
802638
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DDGS Variability-Possible Solutions

• Minimize excessive drying/heating
• Dryer temperatures range from 260 F to 1100 F
• Reduces amino acid digestibility
• Develop and implement standardized production
  procedures for all plants within the company

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DDGS Variablity-Possible Solutions

• Use defined quality criteria for screening corn
• Minimize the number of corn varieties used
• Blend a consistent amount of solubles with grains

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CONCERNS

• Handling Characteristics

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Flowability of DDGS
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Flowability of DDGS

• Some sources of DDGS do not consistently flow
  through transport and feed handling systems
• Problems worse in summer
• Problem worse with higher moisture DDGS

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General Management Wet Distillers

• Within 100 miles of source
• 1-2 week life unprotected
• Bag it
• Add preservatives
• Ensile with other feeds

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CONCERNS

• Anti-Quality Factors

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Problems with DDGS

• Mycotoxins
• Main concerns
• Aflatoxins-carcinogenic, regulated by FDA
• Vomitoxin (DON)-feed refusal
• Fumonisin-carcinogenic
• Zearalenone-reproductive problems

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Problems with DDGS

• Mycotoxins
• If contaminated corn is used, mycotoxins are
  concentrated 3X in DDGS
• ELISA tests for mycotoxins may give false
  positive results
• Use HPLC for accurate quantification

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Problems with DDGS

• Sulfur Content
• Sulfur levels
• Range from 0.31-1.93
• Variation partially due to use of sulfuric acid
  to clean fermenters

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Problems with DDGS

• Sulfur Content
• Sulfur levels
• High levels of sulfur in DDGS with high dietary
  inclusion rate, high S forages/water
• ?polioencephalmalacia in cattle
• Affect on feed intake and palatability of DDGS at
  high levels

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ECONOMICS
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Distillers Grains Value

• A specific least-cost formulation for a specific
  feeding situation always best
• Shortcut based on ground corn grain and soybean
  meal
• Breakeven price of DDGS (/ton) (corn (/bu)
  x 17.85)
• (SBM (/ton) x 0.5)

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Distillers Grains Value (Oct 31 Chicago)
Example Corn grain- 3.62/bu SBM
(48)- 271/T (3.62 x 17.85) (271 x
0.5) 200.12 - Breakeven 133/T - Market
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Wet Distillers Value?
Start with DDG value and discount for a. Dry
Matter- Ex wet 35 dry88 35/880.398 b. Nut
rient Comp. - Avg 98 of dry value c. Shrink - A
vg 0.85 d. Storage costs - Avg
5/T Source-Distillers Grains 2007 OSU
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Wet Distillers
(200.12 x 0.398 x 0.98 x 0.85) - 5 61.35/ ton
delivered
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Livestock producers shouldnt expect cheap
distillers as potential increases may occur to
keep ethanol producers in the black (as corn
prices ? and ethanol prices ?).
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Distillers grains becoming more important in
ethanol profit margins
Current Dec. 07 Dec.08 Prices1 futures
prices2 futures prices3
/gal Ethanol returns 1.72 1.58 1.63 Dis
tillers grains returns 0.38 0.34 0.39 Total
returns 2.09 1.91 2.02 Feedstock variable
costs 1.12 1.12 1.30 Other variable
costs 0.62 0.62 0.65 Total variable
costs 1.74 1.74 1.95 Returns over variable
costs 0.36 0.17 0.07
1 Current prices based on 3.02/bu. Average corn
prices in Iowa and 120 per ton distillers grains
price. 2 December 2007 futures adjusted for Iowa
basis implies 3.02/bu 3 December 2008 futures
adjusted for Iowa basis implies
3.51/bu Feedstuffs, 2007 794628
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Corn Distillers Grains for Cattle

• Advantages
• Dietary Inclusion Levels
• Nutritive Value
• Breakeven Pricing
• Cautions
• See Handout

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