USE IN FEEDLOT CATTLE
Economics

An economic model has been developed for determining economic returns when feeding co-products in cornbased finishing diets (Buckner et al., 2007b). Performance responses from University of Nebraska feedlot research trials were used to predict DMI, F:G, and ADG. User defined inputs of cattle prices and weights, co-products inclusion, trucking costs, and yardage costs allow flexibility in generating the expected returns from feeding co-products in a given feeding situation.The base assumptions include: corn price is $3.70, co-products are purchased at 95% the price of corn on a DM basis, feedlot cattle are fed a base ration containing DRC and HMC, and steers are gaining 560 lb over the finishing period. This model suggests the optimum level of WDGS is 30 to 40% of diet DM when feedlots are within 30 miles of the ethanol plant (Figure 13). As the distance increases from the plant to the feedlot, the optimum inclusion of WDGS decreases to 25 to 35%.This comparison suggests that more WDGS can be fed than levels currently being fed; however, the optimum inclusion is dependent on more than just the feeding value of WDGS.

Modeling DDGS with $3.70 corn has a response curve similar to the WDGS curve at 60 miles; however, the economic optimum appears to be at approximately 20% dietary inclusion of DDGS (Figure 14). This is lower than the optimum inclusion for WDGS with the same assumptions. The increase in economic returns from feeding DDGS as corn price increases is consistent with similar corn price changes for WDGS and WCGF. The returns from feeding Sweet Bran WCGF increase as the level of WCGF increases in the diet (Figure 15). This response is consistent for feedlots 0 to 100 miles from the plant. These data clearly show that factors such as cattle performance, distance from the plant, and corn price influence the economic optimum inclusion rate of co-products in feedlot rations.

An Excel spreadsheet model is available for download here, under the name Cattle CODE ("by-product feeds" section of this web site).

For more information or to request additional copies of this manual, contact the Nebraska Corn Board at 1-800-632-6761 or e-mail k.brunkhorst@necorn.state.ne.us.

Download PDF version of this manual, or



For more information on the feeding of corn milling co-products to beef cattle
and information contained in this manual, contact:
Dr. Galen Erickson, University of Nebraska-Lincoln, Department of Animal Science Room C220, Lincoln, NE 68583-0908, 402-472-6402

Date published: August, 2007