DTN Weekly Distillers Grains Update
DDGS a Proven Substitute for Fishmeal in Aquaculture Diets
Aquaculture is the fastest-growing animal food-producing sector in the U.S., and the industry's dependence on expensive fishmeal for fish feed has led to research showing that dried distillers grains with solubles is a workable and economic replacement.
Kurt Rosentrater, assistant professor at Iowa State University and executive director of the Distillers Grains Technology Council, has done a great deal of research in using DDGS in aquaculture diets. He led a webinar on that subject Tuesday. The webinar was presented by the National Corn-to-Ethanol Research Center (NCERC) at Southern Illinois University Edwardsville and Southern Illinois University Carbondale.
The demand for fish meal has increased over the last decade, and prices of fish meal have increased as well. In 2000, fish meal was priced at about $500 per metric ton, and in recent years has fluctuated between $1,600 and $2,000 per ton.
With feed costs constituting between 40% and 70% of operating costs, the high cost of fishmeal has driven research to find replacements, especially to replace the protein that fishmeal provides, but also amino acids and fatty acids.
The three most important factors in finding a successful replacement for fishmeal are cost, as some are extremely expensive; availability, as some are not readily available at all locations; and some have limited effectiveness, he said.
Although there are a variety of alternative ingredients, there are some challenges that come along with them, Rosentrater said. Some have anti-nutritional factors that can reduce digestibility, irritate the digestive tract or cause allergic responses. Others have toxic compounds that processors have to deal with to make them usable, and some also have a lot of variability. Others are lacking in amino acid or fatty acid profiles, and some ingredients require cost-intensive processing.
Some alternatives for fishmeal include alfalfa meal, corn gluten meal, corn gluten feed, soybean meal, etc. However, Rosentrater pointed out that DDGS has been proven to be an effective replacement for fishmeal, even though it is not a complete replacement. He pointed out that DDGS has no anti-nutritional properties and has very high availability, as the U.S. produces almost 40 million metric tons of DDGS per year.
Price is also one of the driving factors, Rosentrater said, as DDGS is typically only about 10% to 20% the price of fishmeal. In recent years, DDGS has ranged between $100 per ton to about $300 per ton. Soybean meal in the last 13 years has ranged from $200 to nearly $500 a ton, making the value of DDGS only about 25% to 65% of the price of soybean meal.
With fishmeal ranging between $1,600 and $2,000 per ton, DDGS is very competitive from a pricing standpoint, he said.
Research in recent years has shown that DDGS can replace up to 20% of the fishmeal in tilapia diets with DDGS, reducing the baseline dietary cost. Researchers have also been successful in replacing 40% of fishmeal with DDGS in yellow perch diets.
Again, Rosentrater reminded those participating in the webinar that DDGS is not a complete replacement for fishmeal, but what else is added in depends on the need of the individual fish species.
"If you can achieve even a 20% to 40% savings using DDGS, that is a tremendous success for aquaculture operations," he said.
There are a number of factors that aquaculture nutritionists have to consider when formulating diets with DDGS, Rosentrater said. Fishmeal has about twice the protein content of DDGS, and is also much higher in ash, both because of bone fragments in the meal. Also, DDGS has both crude and dietary fiber that fish don't use as well as ruminant animals.
Fishmeal also is higher in certain amino acids that must be added into DDGS for aquaculture diets, such as arginine and lysine. Some minerals such as calcium and phosphorus are higher in fishmeal than DDGS, also because of the bone fragments. However, certain vitamins like niacin and riboflavin are higher in DDGS.
Rosentrater shared recommendations by the U.S. Grains Council for maximum dietary inclusion rates for various species of fish:
- Catfish up to 30%.
- Trout up to 22.5% with synthetic lysine and methionine supplementation.
- Salmon up to 10%.
- Freshwater prawns up to 40%.
- Shrimp up to 10%.
- Tilapia up to 35% with synthetic lysine and supplementation in high protein diets.
- Tilapia up to 82% with synthetic lysine and tryptophan supplementation in low protein diets.
Jesse Trushenski, associate professor at Southern Illinois University Carbondale Center for Fisheries, Aquaculture, and Aquatic Sciences, said that the aquaculture industry is the most diverse form of animal agriculture in the world, adding that there are 500 species raised throughout the world in the form of freshwater fish, mollusks, crustaceans and marine fish.
Approximately 400 of those 500 species raised require complete feeds, resulting in growing demand for aquaculture feed.
While the needs of species can vary, depending on if they are a carnivore, omnivore, etc., fish generally demand more protein than their terrestrial counterparts, she said. Although fishmeal has about twice the protein as DDGS, the huge cost savings still makes DDGS a great value.
Protein requirements for Atlantic salmon are 55% of their diet, tilapia 30%-40%, Atlantic halibut-51%, Asian sea bass 45%, trout 40%-53% and catfish 32%-35%. On the other hand, beef cattle require only between 7%-18%, dairy cattle 12%-18%, swine 12%-13% and poultry 14%-28%.
The use of fishmeal can negatively affect the sustainability of farm fish, as marine ingredients are sometimes potential sources of organic and inorganic contaminants. The risk of contamination of farmed fish is overblown, and the risk is outweighed by the benefits of consuming seafood, she said. However, feeding DDGS can reduce contamination burdens.
One consideration in feeding corn coproducts, she pointed out, is that the pigments can influence the coloring of various types of fish. For example, trout is sold as either a white or pink fillet; however, corn gluten feeds can give the fish a slight yellow cast, which takes away from the value. Usually, DDGS does not influence the color as much as corn feeds.
While DDGS and related products have potential, Trushenski stated that care must be taken to avoid pitfalls.
Rosentrater said that for additional information on using DDGS in fish feeds, those interested may contact the Grains Council or the Distillers Grains Technology Council.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
-----------------------------------------------------------------------
IN THE NEWS
Grazing Corn Residue, Supplementing DDG Add Value to Weaned Calves
Instead of selling calves after weaning, beef producers can cost-effectively add value to weaned calves by grazing corn residue and supplementing with dried distillers grains, according to an article on CattleNetwork.com written by Mary Drewnoski, Daren Redfearn and Jay Parsons from the University of Nebraska-Lincoln Extension (http://bit.ly/…).
Producers should consider the stocking rate and supplementation level in order to economically increase calf value.
Corn fields that have been harvested with greater grains production can accommodate larger stocking rates. But since all forage is present at turn out and the quality and availability of forage decreases over time, producers should follow recommended stocking rates to achieve targeted gains. Also, they should keep in mind that there are about 16 pounds of leaf and husk for every bushel of corn produced, although some will be lost to wind and trampling. Leaf and husk quality of irrigated fields will be lower than dryland fields.
UNL research has found that calves grazing irrigated corn fields can be supplemented with 3 pounds per day of DDG. Such supplementation levels should result in a gain of 1.3 pounds per day, or 1.8 pounds per day is gained if supplementation is increased to 6 pounds per day of DDG.
Researchers calculated (using a price of $150/ton for DDG) a cost of $0.23 per day to supplement DDG at 3 pounds per day and $0.45 to supplement at 6 pounds per day. This supplementation for increased average daily gain should result in great profitability, considering current calf and feed prices.
The researchers also pointed out that modified distillers grains are usually an even better value, provided the producer lives close to an ethanol plant; however, MDG are only about 50% dry matter and require about twice the amount of DDG.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
-----------------------------------------------------------------------
DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 11/7/2014 | 10/31/2014 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $125 | $122 | $3 | |
| Modified | $67 | $67 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $105 | $105 | $0 | |
| Indiana | Dry | $105 | $100 | $5 | |
| Iowa | Dry | $105 | $100 | $5 | |
| Michigan | Dry | $100 | $110 | -$10 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| North Dakota | Dry | $100 | $100 | $0 | |
| New York | Dry | $110 | $125 | -$15 | |
| South Dakota | Dry | $95 | $95 | $0 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $105 | $100 | $5 | |
| Modified | $50 | $48 | $2 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $115 | $110 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $95 | $90 | $5 | |
| Iowa | Dry | $95 | $95 | $0 | |
| Michigan | Dry | $105 | $105 | $0 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Missouri | Dry | $105 | $104 | $1 | |
| Ohio | Dry | $98 | $98 | $0 | |
| South Dakota | Dry | $100 | $95 | $5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $115 | $110 | $5 | |
| Wet | $40 | $35 | $5 | ||
| Illinois | Dry | $110 | $105 | $5 | |
| Nebraska | Dry | $115 | $110 | $5 | |
| Wet | $40 | $35 | $5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $100 | $100 | $0 | |
| Indiana | Dry | $105 | $105 | $0 | |
| Iowa | Dry | $100 | $100 | $0 | |
| Michigan | Dry | $105 | $105 | $0 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Nebraska | Dry | $115 | $110 | $5 | |
| New York | Dry | $165 | $165 | $0 | |
| North Dakota | Dry | $110 | $110 | $0 | |
| Ohio | Dry | $110 | $105 | $5 | |
| South Dakota | Dry | $100 | $100 | $0 | |
| Wisconsin | Dry | $95 | $95 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $105 | $110 | -$5 | |
| Iowa | Dry | $105 | $110 | -$5 | |
| Minnesota | Dry | $100 | $105 | -$5 | |
| Nebraska | Dry | $105 | $105 | $0 | |
| Ohio | Dry | $105 | $110 | -$5 | |
| South Dakota | Dry | $100 | $105 | -$5 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $195 | $200 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $104 | $103 | $1 | ||
| The weekly average prices above reflect only those companies DTN |
| collects spot prices from. States include: Missouri, Iowa, Nebraska, |
| Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan, |
| Wisconsin and Indiana. Prices for Pennsylvania, New York and |
| California are not included in the averages. |
*The spot prices gathered by DTN are only intended to reflect general market trends and may vary. Please contact individual plant or merchandiser for exact prices.
If you would be willing to take a weekly phone call and have your distiller grains spot prices listed in this feature, please contact Cheryl Anderson at (308) 224-1527 or (800) 369-7875, or e-mail cheryl.anderson@dtn.com.
-----------------------------------------------------------------------
| VALUE OF DDG VS. CORN & SOYBEAN MEAL | ||||
| Settlement Price: | Quote Date | Bushel | Short Ton | |
| Corn | 11/6/2014 | $3.7125 | $132.59 | |
| Soybean Meal | 11/6/2014 | $391.70 | ||
| DDG Weekly Average Spot Price | $104.00 | |||
| DDG Value Relative to: | 11/7 | 10/24 | 10/17 | |
| Corn | 78.44% | 76.28% | 77.10% | |
| Soybean Meal | 26.55% | 28.99% | 28.99% | |
| Cost Per Unit of Protein: | ||||
| DDG | $4.16 | $3.92 | $3.88 | |
| Soybean Meal | $8.25 | $7.42 | $7.04 | |
| Notes: | ||||
| Corn and soybean prices taken from DTN Market Quotes. DDG | ||||
| price represents the average spot price from Midwest | ||||
| companies collected on Thursday afternoons. Soybean meal | ||||
| cost per unit of protein is cost per ton divided by 47.5. | ||||
| DDG cost per unit of protein is cost per ton divided by 25. | ||||
-----------------------------------------------------------------------
USDA MARKET NEWS/DISTILLER GRAINS PRICES
USDA WEEKLY DISTILLERS GRAINS SUMMARY (Oct 31, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 95.00-125.00 | 42.00-55.00 | 22.00-34.00 |
| Minnesota | 90.00-100.00 | 40.00 | 35.00 |
| Nebraska | 105.00-120.00 | 45.00-65.00 | 38.00-48.00 |
| South Dakota | 89.00-105.00 | 45.00-58.00 | 26.00-28.00 |
| Wisconsin | 90.00-105.00 | 40.00-45.00 | NQ |
| Eastern Corn Belt | 86.00-117.00 | 40.00-52.00 | NQ |
| Kansas | 115.00-135.00 | NQ | 40.00-52.00 |
| Northern Missouri | 100.00-120.00 | NQ | 34.00-35.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 156.00-170.00 | ||
| Pacific Northwest | 185.00-202.00 | ||
| California | 183.00-193.00 | ||
| Texas Border (metric ton) | 200.00-215.00 | ||
| Lethbridge AB | 170.00 | ||
| Chicago | 100.00-115.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Nov 4, 2014)
Distillers Dry Grains
Rail to California Points 185.00-194.00 dn 12.00-3.00
FOB Truck to California Points 195.00-205.00 up 1.00-11.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Nov 4, 2014)
Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were 10.00 to 13.00 higher, from 195.00-208.00. Offers for distillers dried grains trans-loaded onto trucks and delivered during September to Willamette Valley dairies were also 10.00 to 13.00 higher, from 213.00-223.00.
*All prices quoted per ton unless otherwise noted.
-----------------------------------------------------------------------
RFA WEEKLY U.S. LIVESTOCK FEED PRODUCTION
| CO-PRODUCT OUTPUTS (metric tons) | |||||
| Week Ending | Distillers Grains | Corn Gluten Feed | Corn Gluten Meal | Total Feed | Corn Oil (lbs.) |
| 10/03/14 | 89038 | 9205 | 1705 | 99947 | 5300612 |
| 10/10/14 | 87457 | 9041 | 1674 | 98173 | 5206484 |
| 10/17/14 | 88544 | 9154 | 1695 | 99393 | 5271197 |
| 10/24/14 | 92596 | 9572 | 1773 | 103941 | 5512401 |
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
-----------------------------------------------------------------------
DDG LINKS/RESOURCES
Organizations
*Distillers Grains Technology Council
http://www.distillersgrains.org
*National Corn Growers Association Corn Distillers Grains Brochure
*Iowa Corn
Nebraska Corn Board
*Renewable Fuels Association - Ethanol Co-Products
*American Coalition for Ethanol
*U.S. Grains Council
*South Dakota Corn Utilization Council
http://www.drieddistillersgrains.com
Government Sites
*Iowa Department of Agriculture and Land Stewardship/Office of Renewable Fuels & Coproducts
http://www.distillersgrains.com
University Sites
*University of Minnesota - Distillers Grains By-Products in Livestock
and Poultry Feed
*University of Illinois - Illinois Livestock Integrated Focus Team Distillers Grains site
http://ilift.traill.uiuc.edu/…
*University of Nebraska - Beef Cattle Production By-Product Feeds site
*University of Nebraska Extension
*Iowa Beef Center - Iowa State University
http://www.iowabeefcenter.org/…
*University of Missouri - Byproducts Resource Page
*South Dakota State University - Dairy Science Department - Dairy cattle research
(select "Distillers Grains" from the topic menu)
*Purdue University Renewable Energy Web Site
http://www.extension.purdue.edu/…
(select "Biofuels Co-Products from the menu)
-----------------------------------------------------------------------
DDG CONFERENCES
(If you are sponsoring or know of any event, conference or workshop on distillers grains, and would like to list it in the DTN Weekly Distillers Grains Update, please contact Cheryl Anderson (see contact info below).
-----------------------------------------------------------------------
We welcome any comments/suggestions for this feature. Please let us know what information is valuable to you that we could include in the Distillers Grains Weekly Update. Please feel free to contact Cheryl Anderson at (402) 364-2183, or e-mail cheryl.anderson@dtn.com.
(AG\SK)
(AG)
Copyright 2014 DTN/The Progressive Farmer. All rights reserved.
