Sp Sy 6-1 (6-07) Ethanol Co-Products Used for Livestock Feed National Agricultural Statistics Service USDA Washington, D.C. Released June 29, 2007, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, U.S. Department of Agriculture. For information on "Ethanol Co-Products Used for Livestock Feed" call Scott Hollis at (202) 720-4751, office hours 7:30 a.m. to 4:00 p.m. ET. Highlights In the production process of converting corn to ethanol, important co-products are produced as well. These co-products, also called distillers grains or corn gluten feed, are created within the dry or wet mill process and can be fed to livestock. With the expansion of the ethanol industry, there is a greater supply of co-products. The goals of this study were to identify how many livestock operations were feeding co-products, which co-products were being fed, and the characteristics of those co-products. Information was also collected about how the operations have used and would like to use co-products and related services. In addition the study identified concerns and barriers which prevented operations from feeding co-products. This study was a joint effort between the National Agricultural Statistics Service and the Nebraska Corn Development, Utilization & Marketing Board (an agency of the State of Nebraska). Approximately 9,400 livestock operations in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin were contacted by mail in February 2007 with a second mailing two weeks later and telephone follow-up in March. This probability based survey included dairy cattle, cattle on feed, beef cattle (cow/calf), and hogs. Each species was stratified and sampled independently to represent all livestock operations in the 12 state region. For sampling efficiency, minimum operation size thresholds were set: 20 head for dairy cattle, 50 head for cattle on feed, 10 head for beef cattle, and 25 head for hogs. Hog data were summarized based on the sample operation's state headquarters and may include data from outside the 12 official survey states. The survey reference date was calendar year 2006. Of the 9,400 operations contacted 1,276 indicated they had used co-products during 2006. Their responses were adjusted for non-response and are reported in this release. Responses for operations not feeding co-products were also adjusted for non-response and are included only in the first and last tables of this release. Contents Page Operations' Profile. . . . . . . 1 Operations Purchasing Co-Products1 Price Basis of Purchased Co-Products 1 Co-Product Supplier Services . . 2 Person Formulating Feed Rations. 2 Preferred Color for Co-Product . 2 Co-Products Fed by Type. . . . . 3 Operations Feeding Co-Products . 5 Operations' Ratings of Co-Product Characteristics and Attributes 6 Primary Reason for Not Feeding Co-Products 7 Terms and Definitions. . . . . . 8 Information Contacts . . . . . . 9 Appendix . . . . . . . . . . . .10 Dairy Cattle Version of Questionnaire11 Cattle on Feed Version of Questionnaire15 Beef Cattle Version of Questionnaire19 Hog Version of Questionnaire23 Operations' Profile -------------------------------------------------------------------------------- : : Average Peak : : Average Peak : Average Peak : Inventory of : : Inventory of : Inventory of : Operations : Average Years :Operations Not : All : Feeding : Feeding : Feeding Item : Operations : Co-Products : Co-Products : Co-Products -------------------------------------------------------------------------------- : -------- Head ------- Years Head : Dairy Cattle : 173 223 9.2 142 Cattle on Feed : 725 1,276 5.1 416 Beef Cattle : 127 243 4.6 109 Hogs : 3,256 10,957 2.7 2,168 -------------------------------------------------------------------------------- Operations' Profile (Continued) -------------------------------------------------------------------------------- : : Not Feeding : Not Feeding : : Co-Products but : Co-Products and Not : Feeding :Considered Feeding :Considered Feeding Item : Co-Products : Co-Products : Co-Products -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 38 22 40 Cattle on Feed : 36 34 30 Beef Cattle : 13 30 57 Hogs : 12 35 53 -------------------------------------------------------------------------------- Operations Purchasing Co-Products by Source -------------------------------------------------------------------------------- : Directly from : : : Ethanol : Through : : and Other : Feed : : Processing : Companies/ : Through Item : Plants : Co-ops : Brokers : : : and Other -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 11 77 12 Cattle on Feed : 52 33 15 Beef Cattle : 20 66 14 Hogs : 21 74 5 -------------------------------------------------------------------------------- Operations Purchasing Co-Products by Contract Type -------------------------------------------------------------------------------- : : : : : :Clock and Item : Spot : Monthly :Quarterly : 6-Month : Yearly : Other -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 56 17 8 5 11 3 Cattle on Feed : 55 5 6 10 22 2 Beef Cattle : 69 11 5 5 8 2 Hogs : 55 15 6 9 11 4 -------------------------------------------------------------------------------- Price Basis of Purchased Co-Products -------------------------------------------------------------------------------- : : Soybean : : Item : Corn : Meal : Both : Other -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 32 18 44 6 Cattle on Feed : 66 5 25 4 Beef Cattle : 61 3 31 5 Hogs : 40 12 43 5 -------------------------------------------------------------------------------- Operations Reporting Services Available from Co-Product Supplier 1/ -------------------------------------------------------------------------------- : : : :Nutri- :Variety: : : :On-Site:Nutri- : Deli- : ent : of : : : :Consul-:tional : very : Anal- : Prod- : Edu- : : Item :tation :Service:Service: ysis : ucts :cation : None : Other -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 50 65 75 62 50 35 9 0 Cattle on Feed : 32 39 58 56 32 21 19 0 Beef Cattle : 36 40 61 42 42 23 17 0 Hogs : 37 50 51 55 33 23 20 0 -------------------------------------------------------------------------------- 1/ Percents will not add to 100 due to ability of the respondents to select multiple services available. Operations Reporting Additional Services Wanted from Co-Product Supplier 1/ -------------------------------------------------------------------------------- : : : :Nutri- :Variety: : : :On-Site:Nutri- : Deli- : ent : of : : : :Consul-:tional : very : Anal- : Prod- : Edu- : : Item :tation :Service:Service: ysis : ucts :cation : None : Other -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 4 5 2 4 5 10 77 2 Cattle on Feed : 6 10 5 8 9 18 65 D Beef Cattle : 6 11 7 13 11 21 60 3 Hogs : 7 11 2 14 9 13 63 D -------------------------------------------------------------------------------- 1/ Percents will not add to 100 due to ability of the respondents to select multiple services wanted. D Not enough reports to provide a statistically defensible estimate. Person Formulating Feed Rations -------------------------------------------------------------------------------- : Feed : : : : Company : Independent : Self : Extension Item : Nutritionist : Nutritionist : : Service : : : : and Other -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 59 24 16 1 Cattle on Feed : 54 13 31 2 Beef Cattle : 40 7 49 4 Hogs : 73 11 13 3 -------------------------------------------------------------------------------- Preferred Color for Co-Product -------------------------------------------------------------------------------- Item : Light : Medium : Dark : No Preference -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 14 17 6 63 Cattle on Feed : 23 21 2 54 Beef Cattle : 10 19 5 66 Hogs : 27 25 3 45 -------------------------------------------------------------------------------- Co-Products Fed by Type 1/ -------------------------------------------------------------------------------- : : : : : Average : :Operations :Average2/: : : Amount :Average : Who Use : Peak :Percent :Inclusion: Fed per : Price Item : This Type :Inventory:Moisture: Percent :Animal3/ :Per Ton -------------------------------------------------------------------------------- : Percent Head Percent Pounds Dollars : Condensed Distillers: Solubles (CDS) : Dairy Cattle : 3 206 D D D 84.01 Cattle on Feed : 3 2,926 66 24 1,080 25.17 Beef Cattle : 3 610 66 15 618 57.55 Hogs : C C C C C C : Distillers Dried : Grains, No : Solubles (DDG) : Dairy Cattle : 45 188 12 17 3,280 118.47 Cattle on Feed : 19 1,176 13 11 390 105.69 Beef Cattle : 25 263 12 28 710 107.97 Hogs : 44 6,569 10 11 82 109.49 : Distillers Dried : Grains with : Solubles (DDGS) : Dairy Cattle : 22 272 11 8 1,002 130.15 Cattle on Feed : 14 1,590 15 23 916 85.95 Beef Cattle : 13 344 12 22 396 114.22 Hogs : 37 27,708 12 10 60 91.74 : Corn Gluten Feed : Dairy Cattle : 22 261 21 15 1,858 104.16 Cattle on Feed : 38 1,189 52 26 1,330 44.22 Beef Cattle : 46 215 26 28 3,576 101.29 Hogs : C C C C C C : Brewers Grains : Dairy Cattle : 10 297 61 15 3,620 45.07 Cattle on Feed : C C C C C C Beef Cattle : 3 361 D 31 398 92.31 Hogs : 0 - - - - - -------------------------------------------------------------------------------- 1/ Percents will not add to 100 due to ability of the respondents to select multiple types. 2/ Refers to average peak inventory of operations that fed particular co-product during 2006. 3/ Average amount of particular co-product fed per animal per year. C Data included in Other Co-Products. D Not enough reports to provide a statistically defensible estimate. Co-Products Fed by Type 1/ -------------------------------------------------------------------------------- : : : : :Average : :Operations :Average2/: : : Amount :Average : Who Use : Peak :Percent :Inclusion:Fed per : Price Item : This Type :Inventory:Moisture: Percent :Animal3/:Per Ton -------------------------------------------------------------------------------- : Percent Head Percent Pounds Dollars : Distillers Wet Grains: (25-40% Solids) : Dairy Cattle : 6 353 68 22 5,126 26.77 Cattle on Feed : 19 1,934 60 23 3,306 28.28 Beef Cattle : 6 485 60 22 1,542 39.58 Hogs : C C C C C C : Distillers Wet Grains: (over 40% Solids) : Dairy Cattle : 5 361 57 10 3,078 35.28 Cattle on Feed : 17 2,322 57 26 1,380 31.61 Beef Cattle : 5 495 55 31 1,778 33.56 Hogs : C C C C C C : Complete Commercial : Feed : Dairy Cattle : 8 183 9 29 2,604 226.34 Cattle on Feed : 3 1,194 D D 176 D Beef Cattle : 9 294 12 36 322 165.16 Hogs : 11 3,514 11 11 318 189.52 : Co-Products : from New Processes : Dairy Cattle : C C C C C C Cattle on Feed : C C C C C C Beef Cattle : 1 341 D D 286 155.12 Hogs : 0 - - - - - : Combination of : Co-Products : Dairy Cattle : 5 184 D 27 896 D Cattle on Feed : C C C C C C Beef Cattle : 3 249 20 37 748 105.42 Hogs : C C C C C C : Other Co-Products : Dairy Cattle : 2 329 M M 4,680 M Cattle on Feed : 6 1,461 M M 1,568 M Beef Cattle : 7 227 M M 676 M Hogs : 10 8,598 M M 128 M -------------------------------------------------------------------------------- 1/ Percents will not add to 100 due to ability of the respondents to select multiple types. 2/ Refers to average peak inventory of operations that fed particular co-product during 2006. 3/ Average amount of particular co-product fed per animal per year. C Data included in Other Co-Products. D Not enough reports to provide a statistically defensible estimate. M Data for percent moisture, inclusion percentage and average price per ton were not published due to reporting of multiple co-products. Operations Feeding Additional Protein Sources 1/ -------------------------------------------------------------------------------- : : : : High : : : :Soybean :Cotton- :Roasted : Bypass : : Dry : Item : Meal : seed :Soybeans:Soy Meal : None :Protein :Other -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 72 29 31 22 8 D 5 Cattle on Feed : 18 2 D 2 56 9 16 Beef Cattle : 25 7 1 2 58 6 7 Hogs : 84 0 4 8 7 0 3 -------------------------------------------------------------------------------- 1/ Percents will not add to 100 due to ability of the respondents to select multiple sources. D Not enough reports to provide a statistically defensible estimate. Operations Feeding Co-Products by Forms 1/ -------------------------------------------------------------------------------- : : Dry : : Lick : :Pellets : : :Coarse :Dry Fine : Block/ : : and : Item : Wet : Meal : Meal : Tub : Liquid : Cubes :Other -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 18 36 50 3 2 16 D Cattle on Feed : 64 13 20 4 6 15 0 Beef Cattle : 21 22 26 8 4 43 0 Hogs : 4 33 59 0 D 7 0 -------------------------------------------------------------------------------- 1/ Percents will not add to 100 due to ability of the respondents to select multiple forms. D Not enough reports to provide a statistically defensible estimate. Operations' Preferred Forms of Co-Products 1/ -------------------------------------------------------------------------------- : : Dry : : Lick : :Pellets : : : Coarse :Dry Fine : Block/ : : and : Item : Wet : Meal : Meal : Tub : Liquid : Cubes : Other -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 19 40 44 3 2 20 D Cattle on Feed : 65 15 19 4 6 17 D Beef Cattle : 20 30 19 15 6 48 D Hogs : 4 41 58 0 D 9 0 -------------------------------------------------------------------------------- 1/ Percents will not add to 100 due to ability of the respondents to select multiple forms. D Not enough reports to provide a statistically defensible estimate. Operations' Rating of Co-Product Characteristics 1/ -------------------------------------------------------------------------------- Item : Price : Quality :Consistent:Freshness : Handling :Shelf Life : : Product : Protein : : Ease : -------------------------------------------------------------------------------- : Average : Dairy Cattle : 3.9 3.9 3.8 3.7 3.5 3.6 Cattle on Feed: 3.9 3.8 3.6 3.7 3.5 3.6 Beef Cattle : 3.8 3.8 3.8 3.6 3.6 3.5 Hogs : 3.9 3.9 3.8 3.7 3.7 3.4 -------------------------------------------------------------------------------- 1/ Operators were asked to rate the importance of each product characteristic from 1 (No Importance) to 4 (High Importance). Operations' Rating of Co-Product Characteristics (continued)1/ -------------------------------------------------------------------------------- Item : Consistent : Consistent : Form : Consistent : Lysine : Moisture : Fat : : Fiber : Content -------------------------------------------------------------------------------- : Average : Dairy Cattle : 3.6 3.6 3.3 3.5 3.2 Cattle on Feed : 3.6 3.5 3.3 3.2 2.9 Beef Cattle : 3.3 3.3 3.3 3.2 2.9 Hogs : 3.6 3.5 3.4 3.5 3.6 -------------------------------------------------------------------------------- 1/ Operators were asked to rate the importance of each product characteristic from 1 (No Importance) to 4 (High Importance). Operations' Rating of Co-Product Supplier Attributes 1/ -------------------------------------------------------------------------------- Item : Availability : Comparative :Reliability of : : of Supply : Value : Deliveries : Contracting -------------------------------------------------------------------------------- : Average : Dairy Cattle : 3.8 3.6 3.7 2.8 Cattle on Feed : 3.8 3.7 3.7 3.4 Beef Cattle : 3.7 3.6 3.5 2.7 Hogs : 3.7 3.7 3.6 3.2 -------------------------------------------------------------------------------- 1/ Operators were asked to rate the importance of each attribute from 1 (No Importance) to 4 (High Importance). Primary Reason for Not Feeding Co-Products -------------------------------------------------------------------------------- : Avail- : Infra- : Cost :Concerns/ : Raises :Satisfied : ability :structure : Issues :Questions : Own : with : : and : : about : Feed : Current : : Handling : : Nutri- : : Feeding : : : : tional : : Program : : : : Value : : -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 26 16 13 8 10 8 Cattle on Feed: 35 22 11 2 5 5 Beef Cattle : 38 12 10 4 9 7 Hogs : 36 14 10 16 3 5 -------------------------------------------------------------------------------- Primary Reason for Not Feeding Co-Products (continued) -------------------------------------------------------------------------------- Item : Lack of : Considers : Transport- : Shelf : Other : Knowledge : Operation : ation : Life/ : Reasons : : Too Small : Problems : Longevity : : : : : of : : : : : Product : -------------------------------------------------------------------------------- : Percent : Dairy Cattle : 5 C 2 2 10 Cattle on Feed : 5 4 4 5 2 Beef Cattle : 5 5 3 2 5 Hogs : 5 3 1 1 6 -------------------------------------------------------------------------------- C Data combined with Other Reasons. Terms and Definitions Brewers Dried Grains: the dried extracted residue of barley malt alone or in a mixture with other cereal grain or grain products resulting from the manufacture of wort or beer and may contain pulverized dried spent hops in an amount not to exceed 3%, evenly distributed. Complete Feed: a nutritionally adequate feed for animals other than man; by specific formula is compounded to be fed as the sole ration and is capable of maintaining life and/or promoting production without any additional substance being consumed except water. Condensed Distillers Soluables: obtained after the removal of ethyl alcohol by distillation from the yeast fermentation of a grain or a grain mixture by condensing the thin stillage fraction to a semi-solid. Corn Distillers Dried Grains: obtained after the removal of ethyl alcohol by distillation from the yeast fermentation of a grain or grain mixture by separating the resultant coarse grain fraction of the whole stillage and drying it by methods employed in the grain distilling industry. Corn Distillers Dried Grains with Solubles: product obtained after the removal of ethyl alcohol by distillation from the yeast fermentation of a grain or a grain mixture by condensing and drying at of the solids of the resultant whole stillage by methods employed in the grain distilling industry. Corn Distillers Dried Solubles: obtained after the removal of ethyl alcohol by distillation from the yeast fermentation of a grain mixture by condensing the thin stillage fraction and drying it by methods employed in the grain distilling industry. Corn Gluten Feed: that part of the commercial shelled corn that remains after the extraction of the larger portion of the starch, gluten, and germ by the processes employed in the wet milling manufacture of corn starch or syrup. It may or may not contain one or more of the following: fermented corn extractives, corn germ meal. Corn Gluten Meal: dried residue from corn after the removal of the larger part of the starch and germ, and the separation of the bran by the process employed in the wet milling manufacture of corn starch or syrup, or by enzymatic treatment of the endosperm. It may contain fermented corn extractives and/or corn germ meal. Distillers Wet Grains: product obtained after the removal of ethyl alcohol by distillation from the yeast fermentation of a grain mixture. The guaranteed analysis shall include the maximum moisture. Dry-milled: tempered with a small amount of water or steam to facilitate the separation of the various component parts of the kernel in the absence of any significant amount of free water. Wet-milled: steeped in water with or without sulfur dioxide to soften the kernel in order to facilitate the separation of the various component parts. The terms and definitions cited above were obtained from American Feed Control Officials Incorporated, Official Publication 2007. Information Contacts Listed below are the commodity specialists in the Livestock Branch of the National Agricultural Statistics Service to contact for additional information. Dan Kerestes, Chief, Livestock Branch(202) 720-3570 Livestock Section William Weaver, Head, Livestock Section (202) 720-3570 Bruce Boess - Hogs and Pigs(202) 720-3106 Shawn Clark - Dairy Products(202) 690-3236 Jason Hardegree - Milk Production and Milk Cows(202) 720-3278 Scott Hollis - Sheep & Lambs, Goats(202) 720-4751 Mike Miller - Cattle, Cattle on Feed(202) 720-3040 Benita Hodge - Livestock Slaughter(515) 284-4340 Charmaine Wilson - Dairy Products Prices(202) 690-2168 Appendix On the following pages are the four different versions of the questionnaire that were used to collect data for each of the species sampled (dairy cattle, cattle on feed, beef cattle, and hogs). Only hog owners were mailed the hog version of the questionnaire. The hog questionnaire asked respondents to report hogs and pigs owned by this operation regardless of location while the beef cattle, cattle on feed, and dairy cattle versions asked for inventory regardless of ownership on the acres operated. 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