The Ethanol Industry, Dried Distiller’s Grains with Solubles (DDGS), and Their Impact on Pork Production

Dr. Jerry ShursonDepartment of Animal ScienceUniversity of Minnesota

Projected Ethanol Production (Billion gallons) and Corn Required (Billion bu.) from 2007-2011 (FAPRI, 2006)

0

2

4

6

8

10

2006/07 2007/08 2008/09 2009/10 2010/11

EthanolCorn

4.95

2.15

9.20

3.46

Projected % of U.S. Corn Crop Used to Produce Ethanol and the Amount of By-Product Feeds Produced (million tons) 2007-2011 (FAPRI, 2006)

0

5

10

15

20

25

30

2006/07 2008/09 2010/11

% Corn CropBy-product

20.0

14.4

27.725.5

320,000900,000 1,800,000

3,000,000 3,500,0007,800,000

30,000,000

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

Met

ric T

ons

1980 1985 1990 1995 2000 2005 Est 2010

North American DDGS Production

Source: Sean Broderick, Commodity Specialists Company

Theoretical Potential of Distiller’s By-Product Use in the U.S. Livestock and Poultry Industries (Cooper, 2006)

36,57527,43118,288Total

5,7544,3152,87710Poultry(15.7)

8,6956,5214,34820Pork(23.7)

18,35213,7649,17640Beef(50.2)

3,7742,8311,88720Dairy(10.3)

100 % Market Penetration

75% Market Penetration

50% Market Penetration

Maximum Dietary Inclusion Rate, %

Species(% of Total)

1000 Metric Tonnes

North American DDGS Consumption

CSC 2006

Estimate 2002

44%

37%

3%16%

D airyB eefP o ultrySwine

Estimate 2004

Estimate 2003

Estimate 2005

45%

37%

5%13%

D airyB eefP o ultrySwine

45%

35%

5%15%

D airyB eefP o ultrySwine

46%

39%

4% 11%

D airyB eefP o ultrySwine

Relative Value of DDGS Differs Depending on Species

$108.00Beef Feedlot

$96.34Swine G-F Diet

$104.66Layer Diet

$100.09Poultry Finisher

$114.24Dairy Lactation Assumptions:

•Corn $2.00 / bu

•SBM $175.00 / ton

•Urea $360.00 / ton

•Non-ruminant diets corn/SBM

•Ruminant diets typical diets with competing by-products.

Feed Dollars/ ton

Source: Tilstra, Land O’ Lakes

Quick Calculation of Feed Cost Savings

Thumb rule:

Additions/1000 kg diet

+ 100 kg DDGS x ______ $/kg = $______+ 1.5 kg limestone x ______ $/kg = $______TOTAL ADDITIONS (A) $______

Subtractions/1000 kg diet

- 88.5 kg corn x ______ $/kg = $______- 10 kg SBM (44%) x ______ $/kg = $______- 3 kg dical. phos. x ______ $/kg = $______TOTAL SUBTRACTIONS (S) $______

(S – A) = Feed cost savings/ton by adding 10% DDGS to the diet

USDA historical wholesale prices for DDGS ($/short ton) compared to monthly average closing prices of near-month corn and soybean meal futures from the CBT.

Soybean Meal, Corn, and DDGS Historical Prices

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50

100

150

200

250

300

350

Jan-02

Mar-02

May-02

Jul-02

Sep-02

Nov-02

Jan-03

Mar-03

May-03

Jul-03

Sep-03

Nov-03

Jan-04

Mar-04

May-04

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Sep-04

Nov-04

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Mar-05

May-05

Jul-05

Sep-05

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Jan-06

Mar-06

May-06

Jul-06

$/sh

ort t

on DDGSCornSoybean Meal

Implications for Corn PricesIncreased demand for corn is expected to:

Increase corn pricesIncrease corn acres

Long run price impact will depend onPrice of oil and energy value of ethanolTiming and cost efficiency of converting biomass to ethanolInclusion rates of by-product feeds in livestock diets

Short term price impact could be significantWeather induced shortagesMismatch of acres and ethanol plants

Barriers Limiting DDGS Use in Swine Diets

Variability in nutrient content and digestibility

Small particle size and flowability problems for some DDGS sources

Perceived risk of mycotoxins (sows)

Ability to pellet DDGS dietsHigh quality pelletMaintain throughput of mill

DDGS Varies in Nutrient Content and Digestibility, Color, and Particle Size

Among U.S. Sources

0.42 – 0.990.75 (19.4)Phosphorus, %0.61 – 1.060.90 (11.4)Lysine, %

3504 – 40483810 (3.5)Swine ME, kcal/kg3.0 – 9.86.0 (26.6)Ash, %

5.4 – 10.47.2 (18.0)Crude fiber, %8.8 – 12.410.7 (16.4)Crude fat, %28.7 – 32.930.9 (4.7)Crude protein, %87.3 – 92.489.3Dry matter, %

RangeAverageNutrient

Averages, Coefficients of Variation, and Ranges of Selected Nutrients Among 32 U.S. DDGS Sources (100% Dry Matter Basis)

Barriers Limiting DDGS Use in Swine Diets

Understanding and managing implications of feeding DDGS diets on pork fat quality

Inconsistent feed intake responses with increasing levels of DDGS in the diet

In vitro procedures to estimate amino acid digestibility among DDGS sources

FastAccurateInexpensive

Net energy values of DDGS sources need to be determined

Use of DDGS in Swine Diets

Estimated DDGS Usage in U.S. Swine Feeds 2001-2006 (Metric Tonnes)

0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,000

200120022003200420052006

Current Commercial Dietary DDGS Inclusion Rates and Estimated Usage

Grower-finisher diets ~85-90%10-15% dietary inclusion rates

Sow diets ~5-10% Gestation - up to 30% dietary inclusionLactation - 5-10% of the diet

Late nursery diets < 5% Added at 5-10% of the diet

Maximum Inclusion Rates of Golden High Quality U.S DDGS in Swine Diets

(Based Upon University of Minnesota Performance Trials)

Nursery pigs (> 7 kg)Up to 25 %

Grow-finish pigsUp to 30%

Gestating sowsUp to 50%

Lactating sowsUp to 30%

Assumptions: no mycotoxinsformulate on a digestible amino acid and available phosphorus basis

Standardized Ileal Lysine Digestibility Coefficients Among 10 “Golden” Corn DDGS Sources (Stein et al, 2005)

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70

DDGS Source

12345678910

%

Fig. 1. Regression of digestible lys (%) and color (L*, b*)

R2 = 0.71

R2 = 0.74

20

25

30

35

40

45

50

55

60

0.20 0.30 0.40 0.50 0.60 0.70 0.80

Lys (%)

L*, b

* sc

ore L*

b*Linear (L*)Linear (b*)

Source: Dr. Sally Noll (2003)

Benefits and Limitations for Swine

Energy value = corn

High available PReduce diet P supplementationReduce manure P excretion

Commonly fed at 10% of dietHigher levels can be used if amino acids are supplemented

Appears to reduce gut health problems due to ileitis

May increase litter size weaned and pig weaning weights when fed at high levels to sows

Low protein (lysine) qualityadd other supplements high in lys and trp

Manure N excretion increases

Belly firmness and pork fat quality may be reduced when > 20% in the diet

Mycotoxin free grain should be used to produce ethanol and DDGS

Short-term feed intake may be reduced when transitioning from a corn-SBM diet to high DDGS diets for sows

Benefits Limitations

Effect of Formulating G-F Diets Containing Increasing Levels of DDGS on a Digestible Amino Acid Basis on Growth Performance and Pork Quality

Effect of Formulating G-F Diets on a Digestible Amino Acid Basis, with Increasing Levels of DDGS, on Overall Growth Performance

2.462.492.552.57ADFI, kg/da

2.702.712.762.79F/Ga

0.910.920.920.92ADG, kg/d

114.2114.8115.6115.0Final wt., kg

22.022.022.321.9Initial wt., kg

30% DDGS20% DDGS10% DDGS0% DDGS

a Linear effect of DDGS levelData from 64 pens, 16 pens/treatment (Xu et al., 2007, unpublished)

Adding Increasing Levels of DDGS to G-F Diets Slightly Reduces Carcass Yield

Effect of Dietary DDGS Level on Dressing Percentage

77.9 77.777.1

76.7

70

71

72

73

74

75

76

77

78

0 % 10 % 20 % 30 %Diet

%

Xu et al. (2007) unpublishedLinear effect (P < 0.01)

Effects of Dietary DDGS Level on Last Rib Backfat

0

0.25

0.5

0.75

1

1.25

Backfat, inches

0 % DDGS10% DDGS20% DDGS30% DDGS

Xu et al. (2007) unpublished30% DDGS tended to be lower than 0% DDGS (P = 0.09)

Effects of Dietary DDGS Level on % Carcass Lean

45

50

55

% Lean

0 % DDGS10% DDGS20% DDGS30% DDGS

Xu et al. (2006) unpublished30% DDGS tended to be higher than 0% DDGS (P = 0.11)

Effects of Increasing Dietary DDGS Level on Loin Characteristics

No effect on ultimate pH

Loin firmness was linearly reduced but still acceptableDue to reduced marbling

Marbling was linearly reduced Within NPPC acceptable range (2-4%)Due to trend for reduced backfat

Pigs fed the 30% DDGS diets had loins that were slightly less red

No overall differences in subjective color score

No differences in drip loss on day 0, 14, 21, or 28 post-harvest

No differences in lipid oxidation in loins at 28 days of shelf storage

Effects of Increasing Dietary DDGS Level on Fat Stability of Pork Loins (TBARS, mg malonaldehyde/kg)

0

0.05

0.1

0.15

0.2

0.25

Day 0 Day 14 Day 21 Day 28

0% DDGS10% DDGS20% DDGS30% DDGS

No significant differences among dietary treatments.Values < 0.5 mg malonaldehyde/kg indicate minimal lipid oxidation.

Effects of Increasing Dietary DDGS Level on Cook Loss and Off Flavor of Pork Loins

00.20.40.60.8

11.21.41.61.8

Cook loss, % Off Flavor

0% DDGS10% DDGS20% DDGS30% DDGS

No significant differences among dietary treatments.

Effects of Increasing Dietary DDGS Level on Eating Characteristics of Pork Loins

00.5

11.5

22.5

33.5

44.5

5

Flavor Tenderness Juiciness Overall

0% DDGS10% DDGS20% DDGS30% DDGS

No significant differences among dietary treatments.

Adding Increasing Levels of DDGS to G-F Diets Linearly Reduces Belly Firmness

Effects of Dietary DDGS Level on Belly Firmness

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0 % 10 % 20 % 30 %Diet

DEG

REE

Xu et al. (2006) unpublished

Effects of Increasing Dietary DDGS Level on Belly and Backfat Characteristics

No effect on belly thickness

No differences in belly fat colorJapanese color scoreMinolta L*, a*, b*

Backfat was slightly darker (lower L*) for pigs fed the 20% and 30% DDGS diets

No differences in backfat colorJapanese color scoreMinolta a*, b*

Take Home MessagesContinued rapid growth of the North American ethanol industry will:

Increase demand for corn (and other grains)Increase corn priceReduce corn availabilityRequire livestock and poultry producers to find less expensive alternative feed ingredientsRequire increased use of DDGS in all livestock and poultry sectors

Barriers for increased DDGS use must be overcomeVariabilityFlowability problemsImplementation of quality assurance programs in DDGS productionPelleting issuesUnderstanding and managing impacts of growth performance and pork quality

Take Home MessagesAdding 10% DDGS to swine diets:

Does not affect growth performanceDoes not affect reproductive performanceDoes not affect carcass or pork qualityMay reduce manure P excretionMay reduce diet costMay reduce gut health problems in growing pigs

Adding > 10% DDGS to swine diets:Requires more careful attention to diet formulationMay affect feed intake under certain conditionsReduces carcass yieldReduces belly firmnessDoes not affect pork eating characteristics or shelf-lifeWill increase manure nitrogen excretionMay increase litter size and pig weaning weights

We have developed a DDGS web site featuring:* nutrient profiles and photos of DDGS samples

* research summaries- swine, poultry, dairy, & beef- DDGS quality

* presentations given* links to other DDGS related web sites* international audiences

U of M DDGS Web Sitewww.ddgs.umn.edu