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Economically Optimal Distiller Grain Inclusion in Beef Feedlot Rations: Recognition of Omitted Factors

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  • Jones, Crystal
  • Tonsor, Glynn T.
  • Black, J. Roy
  • Rust, Steven R.

Abstract

With the rapid expansion of the ethanol industry, the feeding landscape familiar to the feedlot industry is changing. While concerns regarding rising corn prices persist, many within the industry are looking at distiller’s grains, a by-product of ethanol production, to serve as a feed substitute. The question remains as to what extent these two feed sources are substitutable. The purpose of this study is to identify the economically optimal inclusion rate of distiller’s grains in beef feedlot rations, considering an array of often omitted factors. Most currently prevailing recommendation rates are strictly biologically based and frequently reference only one feeding trial. Unique economic factors considered in this research include the impact of by-product inclusion rates on animal performance (utilizing recently conducted meta-analysis from 17 relevant feeding trials), enhanced likelihood of death loss from heightened sulfur content, and manure disposal costs. Results indicate that excluding these factors can significantly impact optimal inclusion levels and that reliance on a single or few feeding trials may greatly bias results.

Suggested Citation

  • Jones, Crystal & Tonsor, Glynn T. & Black, J. Roy & Rust, Steven R., 2007. "Economically Optimal Distiller Grain Inclusion in Beef Feedlot Rations: Recognition of Omitted Factors," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37574, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:nccsci:37574
    DOI: 10.22004/ag.econ.37574
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    1. Hadrich, Joleen C. & Wolf, Christopher A. & Roy Black, J. & Harsh, Stephen B., 2008. "Incorporating Environmentally Compliant Manure Nutrient Disposal Costs into Least-Cost Livestock Ration Formulation," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 287-300, April.
    2. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
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    1. De Matteis, Maria C. & Yu, T. Edward & Boyer, Christopher N. & DeLong, Karen L. & Smith, Jason, 2018. "Economic and environmental implications of incorporating distillers’ dried grains with solubles in feed rations of growing and finishing swine in Argentina," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.

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