Economic Evaluation of Alternative Feeds for Dairy
DS-17-97: Reviewed and Revised April 2008
J. W. Schroeder, Extension Dairy Specialist
Alternative feeding adjustments should be chosen on the basis of economics, feasibility and convenience. Feed evaluation factors given in Table 1 may be used to estimate whether or not various forages, roughages or concentrates are good buys in relation to shelled corn and soybean oil meal. Values so obtained may be regarded as an estimate of the maximum worth at these price relationships. Full feed programming and cost analysis of proposed rations are necessary to determine which alternatives are more economical.
Feed-evaluation factors (see Tables 1 and 2) are used to determine the economic nutritional value of forages or various ingredients and feedstuffs used for feeding dairy cows. With these factors, the economic value of each available ingredient can be compared with number 2 shelled corn, 44 percent soybean oil meal, and alfalfa hay.
To determine the comparative value of any ingredient, use the factors listed opposite that ingredient. Multiply the "shelled corn factor" by the current hundredweight price of shelled corn, multiply the "soybean oil meal factor" by the current hundredweight price of 44 percent soybean oil meal, and, when working with forages, multiply the "alfalfa hay factor" by the current hundredweight price of alfalfa hay; then add the two (or three) answers. (Note: Subtract if one of the factors is preceded by a minus sign.)
Compare the computed value with the actual price of the ingredient. If the computed value of the ingredient is greater than the actual price, the ingredient being considered is a better buy (by the amount of the difference) than the same nutrients from a combination of shelled corn, soybean oil meal, and (with forages) alfalfa hay. If the computed value is less than the price of the ingredient, it is NOT a good buy.
For greater precision, include preparation costs (such as for grinding and mixing) for whole grains, limited shelflife (such as wet corn gluten feed in warm weather), shrinkage (a problem with blood-meal) and, of course, the cost of transportation, storage and financing.
Example 1:
Assume that dry, shelled corn is worth $9.82 ($5.50/bu) per hundredweight and the price of 44 percent soybean oil meal is $17 per hundredweight ($350/ton). What if you can buy sunflower meal for $11.75 per hundredweight. Should you use sunflower meal in a grain mix?
sunflower meal corn factor (0.144) x corn price ($9.82) = $1.414
sunflower meal soybean meal factor (0.656) x soybean meal price $17.50 = $11.480
sunflower meal computed value = sum (or difference) = $1.414 + $11.480 = $12.894 per hundredweight, value as fed.
If the "computed" sunflower meal value ($12.89) is more than its price ($11.75, on a hundredweight basis, priced for April 2008, FOB, Eastern North Dakota), sunflower meal would be a good buy under these conditions without considering any other handling or delivery costs.
Example 2:
Assume the same prices for shelled corn and 44 percent soybean meal given in Example 1, and a price of $8.00 per hundredweight ($160/ton) for alfalfa hay from Table 2. You can purchase first-cut, early-head grass hay at $6.80 per hundredweight. Should you buy this hay?
grass hay (first-cut, early-head) corn factor (-0.153) x corn price ($9.82) = -$1.502
grass hay (first-cut, early-head) soybean oil meal factor (-0.336) x soybean oil meal price ($17.50) = -$5.88
grass hay (first-cut, early-head) alfalfa hay factor (1.755) x alfalfa hay price ($8) = $14.040
grass hay (first-cut, early-head) computed value = sum (or difference) = $14.040 - $5.880 - $1.502 = $6.658
Since the "computed" value of the grass hay ($6.66) is less than its market price ($6.80), the grass hay would not be a good buy under these conditions.
Caution
These calculations DO NOT determine the market value of the product. They merely compare their energy, protein and forage value relative to the feedstuff in question. If an ingredient is shown to be a good buy, it should be used only within the limits suggested.
Notes:
(1.) To convert the price of 48 percent soybean oil meal to a 44 percent basis to use these feed evaluation factors, multiply the price of 48 percent soybean meal by 0.94.
(2.) Use ingredients and feeds with the greatest margin of value over cost to the fullest extent possible, in accordance with suggested limits.
(3.) Preferably use least-cost computer formulations to determine which ingredients and what levels should be used in rations balanced for all nutrients, including soluble protein, undegradable protein, fiber, nonstructional or nonfibrous carbohydrates, and fat, among others.
(4.) These values do NOT take into account the costs of commodity storage, time value of borrowed money, equipment needed for mixing ingredients, or transportation. You may find it more economic to work through a local feed dealer who can customize feeds to meet your needs.
Table 1. Feed-evaluation factors for feedstuffs used in dairy cow rations. |
|
Feed Factors |
Ingredient Name |
Crude Protein
(%DM) |
Net Energy, NEL
(Mcal/lb) |
Dry Matter |
Corn |
Soybeans |
Corn, shelled (15.5%) |
10.0 |
0.90 |
88.0 |
1.000 |
0.000 |
Soybean meal, (44%) |
50.0 |
0.88 |
90.0 |
0.000 |
1.000 |
Barley |
12.8 |
0.87 |
89.0 |
0.901 |
0.077 |
Barley, high-moisture |
13.1 |
0.87 |
72.0 |
0.723 |
0.068 |
Beet pulp |
9.7 |
0.81 |
91.0 |
0.913 |
0.018 |
Blood meal |
93.0 |
0.68 |
91.0 |
-1.010 |
2.078 |
Canola |
40.8 |
0.77 |
92.5 |
0.075 |
0.824 |
Corn shelled - high-moisture |
9.5 |
0.90 |
74.4 |
0.856 |
-0.010 |
Corn gluten feed, dry |
23.0 |
0.87 |
90.0 |
0.657 |
0.331 |
Corn gluten feed, wet |
21.9 |
0.87 |
49.0 |
0.356 |
0.180 |
Corn gluten meal, 60% |
67.2 |
0.94 |
90.0 |
-0.343 |
1.411 |
Cottonseed, whole |
23.7 |
0.98 |
88.4 |
0.781 |
0.313 |
Cottonseed, delinted |
23.0 |
1.01 |
90.0 |
0.855 |
0.293 |
Feather meal |
88.0 |
0.70 |
92.0 |
-0.966 |
01.988 |
Fish meal, Menhaden |
66.7 |
0.76 |
92.0 |
-0.598 |
1.481 |
Linseed meal |
37.4 |
0.79 |
91.0 |
0.188 |
0.720 |
Lupins |
41.9 |
0.81 |
85.0 |
0.097 |
0.779 |
Malt sprouts |
28.1 |
0.74 |
94.0 |
0.362 |
0.516 |
Meat and bone meal |
54.1 |
0.74 |
93.0 |
-0.310 |
1.179 |
Oats |
13.0 |
0.80 |
89.0 |
0.798 |
0.101 |
Oat mill coproduct |
3.9 |
0.34 |
92.0 |
0.392 |
0.003 |
Potatoes, raw |
8.9 |
0.85 |
91.0 |
0.990 |
-0.014 |
Rye |
13.8 |
0.88 |
88.0 |
0.880 |
0.098 |
Sorgham or milo |
10.4 |
0.84 |
89.0 |
0.918 |
0.026 |
Soybean meal, treated/high -UIP |
48.7 |
0.89 |
92.0 |
0.047 |
0.986 |
Soybeans, heated |
41.8 |
0.99 |
90.0 |
0.359 |
0.766 |
Soybeans, whole |
41.8 |
0.96 |
90.0 |
0.317 |
0.774 |
Soybean meal, 48% |
54.4 |
0.91 |
90.0 |
-0.070 |
1.104 |
Soyhulls |
12.1 |
0.80 |
90.0 |
0.829 |
0.080 |
Sunflower meal, 35% |
35.0 |
0.44 |
90.0 |
0.144 |
0.656 |
Triticale |
17.6 |
0.88 |
90.0 |
0.806 |
0.194 |
Wheat |
11.3 |
0.89 |
89.0 |
0.965 |
0.035 |
Wheat nudds |
18.0 |
0.71 |
89.0 |
0.549 |
0.249 |
Whey, dried |
13.0 |
0.85 |
93.0 |
0.907 |
0.091 |
Note: DM = dry matter.
Table 2. Feed-evaluation factors for forages fed dairy cows. |
|
Feed Factors |
|
|
|
|
Feed Ingredient |
Corn |
Soybean Meal |
Alfalfa |
Crude Protein
(%DM) |
Net Energy, NEL
(Mcal/lb) |
NDF
(%DM) |
Dry Matter
(%) |
Corn, shelled (15.5%) |
1.000 |
0.000 |
-0.000 |
10.0 |
0.90 |
9.0 |
88.0 |
Soybean meal, (44%) |
0.000 |
1.000 |
0.000 |
50.0 |
0.88 |
14.0 |
90.0 |
Legume hay, average analysis |
-0.000 |
0.000 |
1.000 |
18.6 |
0.60 |
47.7 |
90.0 |
Corn silage, average analysis |
0.100 |
-0.126 |
0.460 |
8.8 |
0.69 |
49.0 |
33.0 |
Small-grain silage, average analysis |
-0.170 |
-0.101 |
0.550 |
14.0 |
0.63 |
59.0 |
32.3 |
sorghum-sudan silage, average analysis |
-0.034 |
-0.124 |
0.548 |
11.0 |
0.57 |
64.1 |
30.0 |
Grass hay, first cut, prehead |
-0.060 |
-0.176 |
1.484 |
18.4 |
0.69 |
56.0 |
89.0 |
Grass hay, first cut, early head |
-0.153 |
-0.336 |
1.755 |
14.5 |
0.63 |
65.0 |
89.0 |
Grass hay, first cut, full head |
-0.289 |
-0.486 |
2.042 |
11.0 |
0.55 |
75.3 |
89.0 |
Grass hay, first cut, mature |
-0.363 |
-0.619 |
2.265 |
7.7 |
0.50 |
82.7 |
89.0 |
Grass hay, aftermath average |
-0.196 |
-0.343 |
1.796 |
14.5 |
0.61 |
66.9 |
89.0 |
Grass hay, late fall |
-0.097 |
-0.247 |
1.591 |
16.5 |
0.66 |
59.8 |
89.0 |
Legume hay, first cut, prebud |
0.046 |
0.155 |
0.801 |
23.9 |
0.68 |
40.5 |
87.0 |
Legume hay, first cut, bud |
0.094 |
0.058 |
0.808 |
19.5 |
0.6 |
42.0 |
87.0 |
Legume hay, first cut, bloom |
0.061 |
-0.106 |
1.016 |
14.7 |
0.59 |
49.0 |
87.0 |
Legume hay, first cut, mature |
-0.064 |
-0.258 |
1.278 |
10.6 |
0.50 |
59.2 |
87.0 |
Legume hay, aftermath average |
0.098 |
0.053 |
0.809 |
19.3 |
0.64 |
42.0 |
87.0 |
Legume hay, late fall |
0.078 |
0.096 |
0.808 |
21.3 |
0.66 |
41.3 |
87.0 |
Grass haylage, first cut, prehead |
-0.015 |
-0.007 |
0.528 |
21.0 |
0.67 |
49.5 |
40.0 |
Grass haylage, first cut, early head |
-0.048 |
-0.076 |
0.625 |
16.6 |
0.60 |
57.5 |
40.0 |
Grass haylage, first cut, full head |
-0.095 |
-0.142 |
0.734 |
12.6 |
0.52 |
66.6 |
40.0 |
Grass haylage, first cut, mature |
-0.123 |
-0.196 |
0.801 |
8.8 |
0.45 |
73.0 |
40.0 |
Grass haylage, first cut, aftermath average |
-0.054 |
-0.091 |
0.620 |
14.5 |
0.55 |
59.2 |
40.0 |
Grass haylage, first cut, late fall |
-0.081 |
-0.045 |
0.614 |
18.9 |
0.58 |
58.0 |
40.0 |
Legume haylage, first cut, prebud |
-0.008 |
0.077 |
0.499 |
25.0 |
0.69 |
43.3 |
47.0 |
Legume haylage, first cut, bud |
0.001 |
0.042 |
0.476 |
21.0 |
0.62 |
44.9 |
47.0 |
Legume haylage, first cut, bloom |
-0.037 |
-0.030 |
0.577 |
17.0 |
0.55 |
52.3 |
47.0 |
Legume haylage, first cut, mature |
-0.096 |
-0.133 |
0.744 |
12.0 |
0.47 |
63.2 |
47.0 |
Legume haylage, first cut, aftermath average |
-0.006 |
0.049 |
0.434 |
20.0 |
0.57 |
45.0 |
47.0 |
Legume haylage, first cut, late fall |
-0.016 |
0.075 |
0.427 |
22.1 |
0.59 |
44.0 |
47.0 |
Corn silage, urea |
0.064 |
-0.087 |
0.467 |
13.2 |
0.69 |
49.0 |
34.0 |
Corn silage, NH3 |
0.075 |
-0.099 |
0.469 |
12.0 |
0.69 |
49.0 |
34.0 |
Small-grain silage, boot |
0.016 |
-0.080 |
0.494 |
16.0 |
0.72 |
54.0 |
30.0 |
Small-grain silage, early head |
-0.051 |
-0.143 |
0.662 |
14.0 |
0.68 |
68.0 |
30.0 |
Small-grain silage, milk |
-0.073 |
-0.159 |
0.662 |
11.0 |
0.58 |
72.0 |
30.0 |
Small-grain silage, dough |
-0.100 |
-0.220 |
0.848 |
10.0 |
0.60 |
77.4 |
30.0 |
Grass pasture, spring prehead |
0.019 |
-0.024 |
0.282 |
19.0 |
0.74 |
48.2 |
20.0 |
Grass pasture, summer prehead |
0.010 |
-0.025 |
0.288 |
19.0 |
0.72 |
49.7 |
20.0 |
Grass pasture, fall prehead |
0.031 |
-0.004 |
0.246 |
21.0 |
0.77 |
43.1 |
20.0 |
Grass pasture, early head |
-0.022 |
-0.063 |
0.358 |
14.9 |
0.63 |
61.0 |
20.0 |
Grass pasture, head |
-0.036 |
-0.093 |
0.401 |
11.0 |
0.57 |
68.0 |
20.0 |
Legume pasture, spring, prebloom |
0.011 |
0.032 |
0.208 |
25.0 |
0.73 |
41.0 |
20.0 |
Legume pasture, summer, prebloom |
0.003 |
0.041 |
0.188 |
25.0 |
0.68 |
41.0 |
20.0 |
Legume pasture, fall, prebloom |
0.010 |
0.053 |
0.175 |
27.0 |
0.72 |
38.0 |
20.0 |
Legume pasture, bloom |
0.014 |
0.022 |
0.173 |
20.0 |
0.61 |
42.0 |
20.0 |
Sorhum-sudan pasture, 30 inch |
-0.013 |
-0.055 |
0.377 |
15.3 |
0.64 |
58.3 |
20.0 |
Sorhum-sudan pasture, 40 inch |
-0.015 |
-0.086 |
0.413 |
13.3 |
0.65 |
61.9 |
22.0 |
Pea vine silage |
-0.020 |
-0.071 |
0.397 |
13.1 |
0.57 |
59.0 |
25.0 |
soybean silage |
-0.040 |
-0.022 |
0.377 |
17.7 |
0.55 |
55.0 |
28.0 |
Rape tops |
0.065 |
-0.041 |
0.201 |
14.0 |
0.85 |
41.2 |
15.0 |
Note: DM = dry matter; NDF = neutral detergent fiber.
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