1. Understanding Corn Processing Co-products Use in Livestock Feeds John D. Lawrence, Iowa State University Darrell Mark, University of Nebraska

2. Outline Trend in corn processing Implications for corn prices Cellulosic ethanol potential Types of corn processing Coproducts and nutritional values Factors to consider before feeding Summary

5. US Ethanol Production June 2006 StatusPlants B/Gal Operational1024.75 Construction 323.03 Announced1278.21 Potential total26115.99 Potential corn use: 5.3-5.9 B/bu Some estimates are higher Source: National Corn Growers Association

6. Implications for Corn Prices Increased demand for corn is expected to: –Increase corn prices –Increase corn acres Long run price impact will depend on –Price of oil and energy value of ethanol –Timing and cost efficiency of biomass to ethanol –Inclusion rates of co-product feeds in livestock diets Short term price impact could be significant –Weather induced shortages –Mismatch of acres and ethanol plants

7. Biomass Ethanol Interest in low nitrogen using perennials Switchgrass, wood, municipal waste and exotic plants like kanaf, crotalaria, etc. Also can use corn stover and coproducts like distillers grains and corn gluten feed May reduce demand and acreage of corn Technology “5-years away”, but plant announced to operate in 2009

8. Two Types of Processing Wet mills –Very large and costly to construct –Multiple products High Fructose Sweetener, corn oil, ethanol Corn gluten meal, corn gluten feed and others Dry mills –Generally smaller and less costly –Two products Ethanol Distillers grains and solubles

9. Wet Milling-Corn Gluten Feed CORNSTEEP WASH WATERGRIND SEPARATION WET CORN GLUTEN FEED STARCH, SWEETNER, ALCOHOL GLUTEN MEAL CORN OIL STEEPCORN BRAN DRY CORN GLUTEN FEED SEM, screenings, dist solubles

10. Products of Wet Corn Milling One bushel of corn yields ProductPounds –Starch31.5 Further processed into 33# of sweetener or 2.5 gallons of ethanol. –Gluten feed 13.5 –Gluten meal 2.5 –Corn meal1.6

11. Corn Gluten Feed (CGF) 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 Looks like oatmeal

12. Dry Milling-Distillers Grains + Solubles CORN GRIND, WET, COOK FERMENTATION YEAST, ENZYMES STILLALCOHOL & CO 2 STILLAGE DISTILLERS GRAINS WDG, DDG DISTILLERS SOLUBLES WDGS DDGS

13. Products of Dry Corn Milling One bushel of corn yields –Ethanol 2.7 gallons –Distillers grains & solubles17-18 pounds DGS are one third the weight of the corn and all but the starch is concentrated into this one-third Sulfur is concentrated and may have been used in the fermenting process Mycotoxins, if they existed in the corn are also concentrated 3:1

14. Distillers Grains + Solubles (DGS) About 65% Distillers Grains & 35% Solubles (DM basis) May be wet or dried Higher crude protein, CP = 30% –65% UIP (undegraded, “bypass”, protein) High fat (11%), low fiber, TDN = 70-110 Concentrates nutrients 3-fold from corn –0.8% P, 0.35-1.0% Sulfur (variable) WDGS looks like mashed potatoes

15. New “Combination” Products Modified wet DGS are available –(35-65% DM) Hybrid wet & dry plant combining corn bran and distillers solubles  bran cake –Example: Dakota Bran Cake

16. Nutrient Composition of Selected Corn Milling Co-Products

17. Factors to Consider Before Feeding Coproducts Nutrients only have value if needed –High protein or energy may not be needed Abrupt changes may put animals off feed Darker brown color indicates it may have been overheated, ties up lysine Upper limits on inclusion rates for some livestock types and weights Excess sulfur possible at high levels and high water levels of sulfur Phosphorous concentration in manure

18. Factors to Consider Before Feeding Coproducts Storage issues, dry product –Additional storage bin –Problems with flow ability in bulk bins Storage issues, wet product –Wet product will spoil in 7-14 days depending on temperature and storage method –Wet product can freeze –Requires good bunk management

19. 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

20. When WDGS Price Is Lowest

21. 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 –Should mix with tub-ground forage and stored in bunker or bag –Have to have the “mix” right…

23. Minimum Levels of Roughage To Mix in WDGS For Storage Bagging a Bunker Grass hay15%30-40 Wheat straw12.525-32 Alfalfa hay22.545-55? DDGS50--- ADMCGF60--- a 300 PSI. Source: Erickson & Klopfenstein

24. Summary Increased corn demand and prices –Implications for crop acres and land prices –Higher feed cost pressures feeder animal price –Biomass may reduce need for corn, but also reduce coproduct supply Often coproducts will reduce ration cost Limits on maximum inclusion rates in diets Technical issues with storages and handling

25. Resources http://beef.unl.edu www.iowabeefcenter.org http://www.ddgs.umn.edu/