J.A. Lory 1, R.E. Massey 2 and M.C. Shannon 3 1
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1 J.A. Lory 1, R.E. Massey 2 and M.C. Shannon 3 1 Plant Sciences, 2 Agricultural and Applied Economics, 3 Animal Science University of Missouri, Columbia MO 65211
2 Costs: $ /hog (58% feed) Loss: $ /hog Manure 1 : $ 8.41 /hog Feed, $ Variable Costs, $22.19 Operating Interest, $3.32 Fixed Costs, $8.45 Feeder Pig, $ ISU analysis did not include manure value.
3 Profit/Loss ($/pig) Includes Full Manure Value No Manure Value
4 Assess the impact of incorporating manure into feed management decisions. How have changes in low-cost diets over the period from 2002 to 2011 affected estimated fertilizer value of manure? Period covers the widespread adoption of incorporating corn dried distillers grains with solubles (DDG) into swine diets. Determine how low-cost diets would have changed if fertilizer value of excreted was integrated as a co-product into linear programming feed optimization routines. The goal is no longer least cost ration formulation but jointly considering ration cost and manure value.
5 Percent lb No DDG lb 40% DDG lb No DDG lb 30% DDG 25% 20% 15% 10% 5% 0%
6 Regulatory and voluntary strategy to minimize impact of manure management on water quality is to fully utilize manure nutrients as fertilizer for crop production(usepa, 2008). Fertilizer nutrients can be a significant component of net income on swine operations (e.g. Lory et al., 2004). Fertilizer value of nutrients excreted by livestock can vary widely due to many factors including: diet, manure handling system, method of application and soil nutrient status.
7 Software is commonly used to optimize diets based on nutritional needs of the animal and costs of available ingredients. Feed optimization programs primarily consider input costs for evaluating low-cost rations. Some research suggests adding environmental costs for over feeding N and P. Our research is asking if the market for feed and fertilizer nutrients can address N and P pollution.
8 National Swine Nutrition Guide (NSNG) Diet Formulation and Evaluation Software (NSNG, 2010) estimates manure fertilizer value of different diets Does not include manure value as part of the optimization routine. Nutritional constraint changes in recent years Available P was reduced in 2007 for lb pigs; constant, otherwise. Ca was reduced in 2007 for all diets affects Ca:P ratios that can affect P in the manure. Amino Acids changed (some increased, some decreased) in 2007 can affect N in manure by affecting crude protein in diet.
9 Dollars/bushel $8 $7 $6 $5 $4 $3 $2 $1 $0
10 Cost ($/ton) 600 Corn Soybean Meal (47.5%) DDG
11 Cost ($/ton) MonoCal (21%P) DiCal (18.5%P) Anhy Ammon DAP Potash $1, $1, $ $ $ $ $
12 Evaluated seven diets: lb pigs lb pigs lb pigs lb pigs lb pigs lb pigs Greater than 250 lb pigs Evaluated with or without DDG as a feed component option lb pigs limited to 40% DDG in ration 130 to 250 lb pigs limited to 30% DDG in ration Greater than 250 lb pigs were not fed DDG in ration. Evaluated with an without manure value in the optimization function.
13 USDA Annual Prices for Corn Soybean Meal Anhydrous Ammonia Fertilizer Diammonium Phosphate Fertilizer Potassium Fertilizer By-Product Feed Price Database DDG Missouri Swine Feed Group (personal communication) Dical Monocal L-Lysine L-Threonine Phytase - effectiveness based on Naturophos option in NSNG (2010).
14 Phase Finisher 1 (50-70 lb.) Finisher 6 ( lb.) Year of nutrient constraints ME (kcal/lb) 1,510 1,512 1,517 1,521 Total Lys Iso Met Met&Cys Thr Try Val Ca Avail P Ca:TP ratio Ca:AP ratio DDGS limit
15 Diet nutrients constraints based on Kansas State University Swine Nutrition Guide (1998; 2007) and NRC (1998, 2012). Feed component composition based on NSNG (2010). Nutrient retention (N, P, K) of pigs based on equations in NSNG (2010). Nutrient availability for crop production of excreted nutrients based on slurry tank manure injected into soil. Excreted N, P and K were assumed to be 70%, 100% and100% available, respectively. Linear programming optimization routines executed in Microsoft Excel Solver.
16 Excreted nutrients are the difference between fed nutrient and retained nutrients. Over feeding nutrients in swine diets does not further increase nutrient retention of pigs(e.g. Henley et al., 2012;McDonnell et al., 2011). Curvilinear relationship between phytase units (FTU kg -1 ) and P availability (%) linearized for optimization routine by transforming relationships into six linear segments with decreasing effectiveness. Farmers received full fertilizer value for plant-available manure N, P and K.
17 Results
18 Cost difference between with and without DDG in diet $ $60 $50 $40 $30 $20 $10 $
19 Pounds of N/ton of Feed In Out In Out In Out In Out In Out In Out In Out Beginning Weight: DDG in diet/ddg out of diet
20 Pounds of P2O5/ton of Feed In Out In Out In Out In Out In Out In Out In Out Beginning Weight: DDG in diet/ddg out of diet
21 Pounds of P2O5/ton of Feed 3 Positive value: DDG in diet increases P2O5 in manure Negative value: DDG in diet decreases P2O5 in manure In Out In Out In Out In Out In Out In Out In Out Beginning Weight: DDG in diet/ddg out of diet Grower: DDG is always increase diet CP and excreted N
22 Pounds of K2O/ton of Feed In Out In Out In Out In Out In Out In Out In Out Beginning Weight: DDG in diet/ddg out of diet
23 lb. P/ton feed No DDG in diet 40% DDG in diet 14 Corn P SBM P DDG P Mineral P 14 Corn P SBM P DDG P Mineral P Constraints 2007 Constraints Constraints 2007 Constraints
24 Value ($/ton of feed) lb No DDG lb 40% DDG lb No DDG lb 30% DDG
25 DDG always the low-cost diet. DDG always increased diet CP and excreted N. DDG usually decreased excreted P prior to DDG usually increased excreted P after On the whole, excretion of N, P and K have decreased over time. Due to increasing value of fertilizer nutrients, the value of manure has increased over time.
26 Results
27 Pounds of P/ton of Feed 10 Limestone: AP = 0? no yes no yes no yes no yes no yes no yes no yes no yes no yes no yes Year: no = Diet optimization only Yes = Diet and Manure optimization Sum of TP Mineral Sum of TP DDG Sum of TP SBM Sum of TP Corn Note: Phytase used in 2009, 2010 and 2011 when manure value not optimized
28 Change ($/ton) Year Diet Cost Manure Value Net Value Average
29 Pounds of P/ton of Feed high P not seen when no DDG in diet no yes no yes no yes no yes no yes no yes no yes no yes no yes no yes Year: no = Diet optimization only Yes = Diet and Manure optimization Sum of TP Dical Sum of TP MonoCal Sum of TP SBM Sum of TP Corn Note: Phytase used in 2009, 2010 and 2011 when manure value not optimized
30 Change ($ ton feed) Year Diet Cost Manure Value Net Value Average
31 Weight Range Net Feed Cost Difference between Manure included and Manure not included in optimization Net Feed Cost = Feed Cost Manure Value DDG No DDG $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 Difference in Net Feed Costs ($/ton)
32 1. Had no effect on diet composition Small benefits but worth evaluating in Eliminated phytase from diets containing DDG. 4. Reduced or eliminated phytase in C-SBM diets. Controlled by energy in diet and P- density of P sources.
33 Manure is a significant source of value to livestock producers. Opportunities exist to integrate the value of manure into the least cost diet decision so that net income is optimized. Impact is currently small. Caveat: cost of diets are certain expense; value of manure is uncertain revenue. Minimizing P Excretion in C-SBM diets still limited by P availability of corn.
34 J.A. Lory 1, R.E. Massey 2 and M.C. Shannon 3 1 Plant Sciences, 2 Agricultural and Applied Economics, 3 Animal Science University of Missouri, Columbia MO 65211
35 Cost ($/ton) lb phase lb phase $ No DDG 40% DDG $ No DDG 30% DDG $ $ $ $ $ $ $ $ $ $ $50.00 $50.00 $0.00 $0.00
36 lb. N/ton feed lb phase lb phase 45 No DDG 40% DDG 45 No DDG 30% DDG Constraints 2007 Constraints Constraints 2007 Constraints
37 lb. P2O5/ton feed lb phase lb phase 25 No DDG 40% DDG 25 No DDG 30% DDG Constraints 2007 Constraints Constraints 2007 Constraints
38 lb. K2O/ton feed lb phase lb phase 25 No DDG 40% DDG 25 No DDG 30% DDG Constraints 2007 Constraints Constraints 2007 Constraints
39 lb. P/ton feed 12 Manure value not in optimization Corn P SBM P DDG P MonoCal P DiCal P Manure value in optimization Corn P SBM P DDG P MonoCal P Dical P Constraints 2007 Constraints Constraints 2007 Constraints
40 lb. P/ton feed Corn P SBM P DDG P MonoCal P DiCal P Manure value not in optimization Manure value in optimization Corn P SBM P DDG P MonoCal P Dical P Constraints 2007 Constraints Constraints 2007 Constraints
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