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Ray Massey, John Lory and Marcia ShannonUniversity of MissouriCommercial Agriculture Program
 Manure is a significant source of value tolivestock producers. Manure has moved from a waste product toa co-product in ...
FeederPig, $42.91Feed, $107.18VariableCosts, $22.19OperatingInterest, $3.32FixedCosts, $8.45ManureValue is not considered!...
 Typical Situation: Minimize ration costsubject to nutritional constraints. find the least cost combination of feedstuff...
 Manure value is increasing as fertilizer priceshave increased. DDGS are entering the diet Minimize cost of ration Sou...
$0$200$400$600$800$1,000$1,200$1,400$1,600$0$50$100$150$200$250$300$350$400$450$5002002 2003 2004 2005 2006 2007 2008 2009...
Year Diet Cost($/ton)Manure Value($/ton feed)Manure aspercent of Diet2002 $138.47 $12.20 9%2003 $142.15 $14.88 10%2004 $15...
0%5%10%15%20%25%2002 2003 2004 2005 2006 2007 2008 2009 2010 2011PercentofRationCostDDGS No DDGS50-100 lb phase, manure no...
Year Manure not in OR Manure in OR Savings2002 $126.27 $126.07 $0.202003 $127.28 $126.64 $0.642004 $141.70 $141.70 $0.0020...
Year Manure not in OR Manure in OR Added Cost2002 $138.47 $143.32 $4.842003 $142.15 $148.63 $6.472004 $157.31 $157.31 $0.0...
$0.00$5.00$10.00$15.00$20.00$25.00$30.00$35.00$40.00$45.002002 2003 2004 2005 2006 2007 2008 2009 2010 2011Manure not in O...
Manure? Corn SBM DDGS MonocalPhosphateLimestone L-LysineManure notin OR62% 25% 9% 0.98% 1.03% 0.43%Manure inOR25% 33% 40% ...
Manure? Corn SBM DDGSNet Cost($/ton)Diet($/ton)Manure($/ton diet)Manurenot in OR62% 25% 9% $139.40 $160.52 $21.12Manurein ...
Manure? Corn SBM DDGS MonocalPhosphateLimestone Phytase(units)Manure notin OR 43.12% 14.06% 40.00% 0.12% 1.37% 47Manure in...
Manure? Phytase(units)MonocalPhosphateNet Cost($/ton)Diet($/ton)Manure($/ton diet)Manurenot in OR 47 0.12% $134.23 $172.77...
 Manure needs to be considered a co-productrather than a waste product. Co-products are managed for optimization. Inclu...
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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.

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Integrating Manure Into Feed Ration Optimization

  1. 1. Ray Massey, John Lory and Marcia ShannonUniversity of MissouriCommercial Agriculture Program
  2. 2.  Manure is a significant source of value tolivestock producers. Manure has moved from a waste product toa co-product in livestock production. Opportunities exist to integrate the value ofmanure into the least cost diet decision sothat net income is optimized Caveat: cost of diets are certain expense;value of manure is uncertain revenue.
  3. 3. FeederPig, $42.91Feed, $107.18VariableCosts, $22.19OperatingInterest, $3.32FixedCosts, $8.45ManureValue is not considered!Profit/Hog Marketed = -$11.64
  4. 4.  Typical Situation: Minimize ration costsubject to nutritional constraints. find the least cost combination of feedstuffs tomeet the dietary needs of the animal. Alternative: Minimize ration costs lessmanure value subject to nutritionalconstraints. The objective is no longer least cost rationformulation but jointly considering ration cost andmanure value.
  5. 5.  Manure value is increasing as fertilizer priceshave increased. DDGS are entering the diet Minimize cost of ration Source of P and K that have value as fertilizerwhen in the manure There is no increased cost for optimizingmanure value – same quantity of manure isproduced 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$5002002 2003 2004 2005 2006 2007 2008 2009 2010 2011Fertilizer($/ton)Feed($/ton)Corn SBM DDGS Anhy N DAP K2O
  7. 7. Year Diet Cost($/ton)Manure Value($/ton feed)Manure aspercent of Diet2002 $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 2011PercentofRationCostDDGS No DDGS50-100 lb phase, manure not yet included in optimization routine
  9. 9. Year Manure not in OR Manure in OR Savings2002 $126.27 $126.07 $0.202003 $127.28 $126.64 $0.642004 $141.70 $141.70 $0.002005 $115.48 $115.32 $0.172006 $139.40 $130.98 $8.412007 $151.24 $151.24 $0.002008 $161.69 $161.69 $0.002009 $134.23 $133.62 $0.612010 $179.31 $179.00 $0.312011 $229.86 $229.47 $0.38
  10. 10. Year Manure not in OR Manure in OR Added Cost2002 $138.47 $143.32 $4.842003 $142.15 $148.63 $6.472004 $157.31 $157.31 $0.002005 $133.30 $133.40 $0.102006 $160.52 $162.28 $1.762007 $175.15 $175.15 $0.002008 $202.69 $202.69 $0.002009 $172.77 $172.78 $0.002010 $206.76 $206.95 $0.192011 $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$45.002002 2003 2004 2005 2006 2007 2008 2009 2010 2011Manure not in ORManure in OR
  12. 12. Manure? Corn SBM DDGS MonocalPhosphateLimestone L-LysineManure notin OR62% 25% 9% 0.98% 1.03% 0.43%Manure inOR25% 33% 40% 0.23% 1.46% 0.09%Note: these results are consistent across 200-250 lb weight range.
  13. 13. Manure? Corn SBM DDGSNet Cost($/ton)Diet($/ton)Manure($/ton diet)Manurenot in OR62% 25% 9% $139.40 $160.52 $21.12Manurein OR25% 33% 40% $130.98 $162.28 $31.30Note: these results are consistent across 200-250 lb weight range.
  14. 14. Manure? Corn SBM DDGS MonocalPhosphateLimestone Phytase(units)Manure notin OR 43.12% 14.06% 40.00% 0.12% 1.37% 47Manure inOR 43.07% 14.07% 40.00% 0.24% 1.32% 0Note: these results are consistent across 200-250 lb weight range.
  15. 15. Manure? Phytase(units)MonocalPhosphateNet Cost($/ton)Diet($/ton)Manure($/ton diet)Manurenot in OR 47 0.12% $134.23 $172.77 $38.54Manure inOR 0 0.24% $133.62 $172.78 $39.15Note: these results are consistent across 200-250 lb weight range.
  16. 16.  Manure needs to be considered a co-productrather than a waste product. Co-products are managed for optimization. Including manure in the feed optimizationroutine can decrease net diet cost. Usually increases actual diet cost a small amount. Increase in actual diet is always realized; value ofmanure is less certain. Don’t include manure in optimization decisionswithout a high probability of realizing the manurevalue.

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