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Integrating Manure Into Feed Ration Optimization

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Integrating Manure Into Feed Ration Optimization

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For more: http://www.extension.org/67648 Ration optimization models currently minimize the purchase price of feeds used to meet nutrient requirements. Not included in optimization models is the value of manure nutrients resulting from ration alternatives. This project extends the linear program that is used to minimize ration cost to include the value of manure excreted and stored. Microsoft EXCEL’s Solver GRG Nonlinear Add-in is used to optimize the integrated decision because of the non-linear aspects of manure excretion as a function of feed fed.

For more: http://www.extension.org/67648 Ration optimization models currently minimize the purchase price of feeds used to meet nutrient requirements. Not included in optimization models is the value of manure nutrients resulting from ration alternatives. This project extends the linear program that is used to minimize ration cost to include the value of manure excreted and stored. Microsoft EXCEL’s Solver GRG Nonlinear Add-in is used to optimize the integrated decision because of the non-linear aspects of manure excretion as a function of feed fed.

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Integrating Manure Into Feed Ration Optimization

  1. 1. Ray Massey, John Lory and Marcia Shannon University of MissouriCommercial Agriculture Program
  2. 2.  Manure is a significant source of value to livestock producers.  Manure has moved from a waste product to a co-product in livestock production.  Opportunities exist to integrate the value of manure into the least cost diet decision so that net income is optimized  Caveat: cost of diets are certain expense; value of manure is uncertain revenue.
  3. 3. Feeder Pig, $42.91 Feed, $107.18 Variable Costs, $22.19 Operating Interest, $3.32 Fixed Costs, $8.45 ManureValue is not considered! Profit/Hog Marketed = -$11.64
  4. 4.  Typical Situation: Minimize ration cost subject to nutritional constraints.  find the least cost combination of feedstuffs to meet the dietary needs of the animal.  Alternative: Minimize ration costs less manure value subject to nutritional constraints.  The objective is no longer least cost ration formulation but jointly considering ration cost and manure value.
  5. 5.  Manure value is increasing as fertilizer prices have increased.  DDGS are entering the diet  Minimize cost of ration  Source of P and K that have value as fertilizer when in the manure  There is no increased cost for optimizing manure value – same quantity of manure is produced and must be land applied.
  6. 6. $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fertilizer($/ton) Feed($/ton) Corn SBM DDGS Anhy N DAP K2O
  7. 7. Year Diet Cost ($/ton) Manure Value ($/ton feed) Manure as percent of Diet 2002 $138.47 $12.20 9% 2003 $142.15 $14.88 10% 2004 $157.31 $15.61 10% 2005 $133.30 $17.82 13% 2006 $160.52 $21.12 13% 2007 $175.15 $23.91 14% 2008 $202.69 $41.00 20% 2009 $172.77 $38.54 22% 2010 $206.76 $27.45 13% 2011 $267.62 $37.76 14%
  8. 8. 0% 5% 10% 15% 20% 25% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 PercentofRationCost DDGS No DDGS 50-100 lb phase, manure not yet included in optimization routine
  9. 9. Year Manure not in OR Manure in OR Savings 2002 $126.27 $126.07 $0.20 2003 $127.28 $126.64 $0.64 2004 $141.70 $141.70 $0.00 2005 $115.48 $115.32 $0.17 2006 $139.40 $130.98 $8.41 2007 $151.24 $151.24 $0.00 2008 $161.69 $161.69 $0.00 2009 $134.23 $133.62 $0.61 2010 $179.31 $179.00 $0.31 2011 $229.86 $229.47 $0.38
  10. 10. Year Manure not in OR Manure in OR Added Cost 2002 $138.47 $143.32 $4.84 2003 $142.15 $148.63 $6.47 2004 $157.31 $157.31 $0.00 2005 $133.30 $133.40 $0.10 2006 $160.52 $162.28 $1.76 2007 $175.15 $175.15 $0.00 2008 $202.69 $202.69 $0.00 2009 $172.77 $172.78 $0.00 2010 $206.76 $206.95 $0.19 2011 $267.62 $267.91 $0.29
  11. 11. $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Manure not in OR Manure in OR
  12. 12. Manure? Corn SBM DDGS Monocal Phosphate Limestone L-Lysine Manure not in OR 62% 25% 9% 0.98% 1.03% 0.43% Manure in OR 25% 33% 40% 0.23% 1.46% 0.09% Note: these results are consistent across 200-250 lb weight range.
  13. 13. Manure? Corn SBM DDG S Net Cost ($/ton) Diet ($/ton) Manure ($/ton diet) Manure not in OR 62% 25% 9% $139.40 $160.52 $21.12 Manure in OR 25% 33% 40% $130.98 $162.28 $31.30 Note: these results are consistent across 200-250 lb weight range.
  14. 14. Manure? Corn SBM DDGS Monocal Phosphate Limestone Phytase (units) Manure not in OR 43.12% 14.06% 40.00% 0.12% 1.37% 47 Manure in OR 43.07% 14.07% 40.00% 0.24% 1.32% 0 Note: these results are consistent across 200-250 lb weight range.
  15. 15. Manure? Phytase (units) Monocal Phosphate Net Cost ($/ton) Diet ($/ton) Manure ($/ton diet) Manure not in OR 47 0.12% $134.23 $172.77 $38.54 Manure in OR 0 0.24% $133.62 $172.78 $39.15 Note: these results are consistent across 200-250 lb weight range.
  16. 16.  Manure needs to be considered a co-product rather than a waste product.  Co-products are managed for optimization.  Including manure in the feed optimization routine can decrease net diet cost.  Usually increases actual diet cost a small amount.  Increase in actual diet is always realized; value of manure is less certain.  Don’t include manure in optimization decisions without a high probability of realizing the manure value.

Editor's Notes

  • http://www.econ.iastate.edu/estimated-returns/FWF12.pdf Averaged the 12 months of Jan 2012 to December 2012 market hog sales.
  • Diet costs have doubled, manure value has tripled.

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