Lower DDGS Prices May Warrant a Second Look by Swine Producers

Recent lower prices in dried distillers grains with solubles suggest producers may want to take a second look at dried distillers grains with solubles (DDGS) for swine rations, a Kansas State University animal scientist said.

"In the past, we have been very cautious about the addition of DDGS, based on the high cost of DDGS, relative to corn prices here in Kansas," said Mike Tokach, swine specialist with K-State Research and Extension.

"In addition, there has been some controversy in research results," Tokach continued.

"Some studies have shown negative responses in growth performance, while other studies have shown similar performance to a corn-soybean meal diet."

With the seemingly continual rise in ethanol plant construction, however, DDGS prices have been dropping recently, coupled with increases in corn and soybean meal prices, Tokach said.

The net result is that DDGSs are beginning to price into swine diets in many areas of the country.

The price of DDGS in Kansas is still higher than it is in some other areas, he added.

But, that could change with increased ethanol production.

"A quick rule of thumb for a general evaluation is that if the DDGS price is the same as corn´s, it will create enough savings to justify its use in the diet," Tokach said.

The breakeven for DDGS can move from 110 to 130 percent of the corn price, depending on the cost of other ingredients.

Because carcass fat becomes softer and carcass yield declines as DDGS levels increase in the diet, producers should consider the ramifications at the packing plant, as well.

Help with formulating diets and calculating the economics of adding DDGS to swine diets is available by contacting a K-State Research and Extension swine specialist.

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Lower DDGS Prices May Warrant a Second Look by Swine Producers