1. Ray Massey, John Lory and Marcia Shannon
University of MissouriCommercial Agriculture Program

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. 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.  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.  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. $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. 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. 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. 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. 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. $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. 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. 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. 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. 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.  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.