Positioning Commodity Feeds in Dairy Rations

 

 

By-product feeds (also referred to as co-product feeds) are produced during the production and manufacturing of human and industry products (such as sugar, ethanol, starch, or oil). These ruminant feeds can be more valuable than the original feed in some cases (such as corn distillers grain). This paper discusses positioning by-product feeds, calculating an economical value, strategies to use on dairy farms, and quality concerns.

 

Positioning refers to determining how a by-product feed would be using in the dairy ration on each dairy farm situation. If the current ration does not need the nutrients in a by-product feed, it should not be considered. Categories are listed below with example by-product feeds that could fit in each group.

A by-product feed may fit in more than one position. Each dairy manager must determine if an opportunity exists on the dairy farm. For example, a ration high in corn silage could benefit from by-product feeds that could provide functional fiber (depending on particle size of the corn silage), additional protein (both soluble protein and RUP high in lysine), rumen fermentable fiber (low in starch), and supplemental source of oil/fat (depending on production level of the herd). In the grass or small grain ration forage based ration, adding RUP source, rumen fermentable carbohydrates, and fat/oil could be the optimal positioning of by-product feeds. One Illinois ration approach with higher levels of corn silage using by-product feeds could include 2 to 2.5 kg of fuzzy cottonseed, 1 to 52 kg of soy hulls, and one kg heat treated soy product. A computer rumen model program (such as the 2001 Dairy NRC model, AminoCow, or CPM model) can evaluate amino acid balance, dry matter intake, and energy discounts.

 

Once the dairy manager has determined that an opportunity to use a by-product feed exists (positions properly), the next question is if the feed is favorably priced. Software programs can answer this question by determining the value of nutrients in the byproduct feed using reference feeds.

1. “Feed Val” spreadsheets were developed by the University of Wisconsin. The approach is to calculate a value of selected nutrients using base feeds and determine the value of nutrients in the by-product feed (Tables 1 and 2).

a. Feed Val 1 uses corn (energy) and soybean meal (protein) values.

b. Feed Val 3 uses corn (energy), soybean meal (RUP source), tallow (oil or fat), dicalcium phosphate (phosphorous), and limestone (calcium).

c. Feed Val 4 uses corn (energy), blood meal (RUP), urea (RDP), tallow (fat), dicalcium phosphate (phosphorous), and limestone (calcium).

2. “Sesame” is another program developed by the Ohio State University that considers several reference feeds in the area and calculates an economic value for the by-product feed.

When determining the value of a by-product feed, consider the following points to be sure the feed is a good value.

 

 

Herd size will have an impact on how an individual farm can use by-product feeds after determining it can be positioned and prices correctly. The minimum level of a feed or blend that can be successfully mixed in a TMR is 1 kg with 2 to 3 kg optimal. Two approaches are listed below.

1. Buying semi-load quantities of individual by-product feeds can be feasible on larger dairy farms because it can be fed up in a timely period (less than 60 days). The following commodity feeds and storage needs can be considered.

a. Storage of processed hay

b. Storage of energy feed (hominy, corn, or barley)

c. Storage of an oil/fat (fuzzy cottonseed or roasted soybeans)

d. Storage of fibrous feed (soy hulls or citrus pulp)

e. Storage of micro-nutrient blend (mineral-vitamin-additive mixture)

f. Storage of a protein blend or feed

Vertical storage bins with auger can improve mixing accuracy and minimize shrink losses. Inside storage also lowers shrink loss and comfort for the feeder. Outside flat storage protected from the weather and wind losses should be considered to minimize shrink.

2. Buying a commercial blend of by-products along with mineral and vitamins and protein sources because semi-load quantities are difficult to store and pay for immediately as delivered for smaller herds. Larger herds also find this approach appealing IF the company or cooperative is willing to price the blended feed competitively. This approach can be a win-win situation for both parties.

a. The supplier may strategically purchase by-product feeds as they can lock in large quantities when a by-product feed is at an optimal price (for example fuzzy cottonseed in October and November). Existing storage, mixing, labor, and transportation unit can be used by effectively by the feed company or cooperative.

b. The dairy manager can have better control on mixing and feeding losses as only one feed is added to the TMR instead of 3 to 7 individual feeds.

 

Cornell workers developed a list of questions that dairy managers should consider when deciding if using by-product feeds are a “good” choices for their farms.

 

Nutrient variation can occur with a by-product feed based on the level of nutrients in the based feed ingredient, processing plant, and processing method. Table 3 lists the nutrient composition of selected by-product feeds. An important question is how does the nutritionist build in and adjust for variation. One approach is the guard against a nutrient shortage that could reduce milk production (for example using one standard deviation below the average protein content). A second consideration is guard against a nutrient that could cause rumen health problems (for example one standard deviation about the average oil content). Ohio State specialists suggest formulating for 1.5 standard deviations for the nutrient in ration formulation program.

Feed quality reflects the wholesomeness of the feed which may change during storage. Bagging of wet brewers grain is recommended for herds that can not feed the quantity delivered in five to seven days during warm seasons. Covering with a tarp may protect the surface from rain and mold formation.

Be aware of a by-product feed that appears too cheap. For example, fuzzy cottonseed is normally selling for $280 a ton, but an opportunity for $210 a ton is available. Should you buy it? What questions should you ask? Why is the feed discounted?

 

Grant, R.J. 2003. Recent research on by-product feeds for dairy cattle. Alternative Feed for Livestock and Poultry Conf. Proc. pp. 115-128.

St-Pierre, N.R. 2003. Establishing an economic value by by-product feeds. Alternative Feed for Livestock and Poultry Conf Proc. pp. 203-210.

 

Table 1. Break-even prices for energy feeds based on variable shelled corn and soybean meal price using Feed Val 3 (soybean meal 44% at $400/ton).

 

Table 2. Break-even prices for protein feeds based on variable shelled corn and soybean meal price using Feed Val 3 (shelled corn price at $4.00/bu).

 

Table 3. Nutrient composition of by-product feeds (modified from St. Pierre, 2003).