Economic Optimum Use of Wet Distillers Grains in Feedlots

Authors

Kyle J. Vander Pol, University of Nebraska-Lincoln
Galen E. Erickson, University of Nebraska-LincolnFollow
Terry J. Klopfenstein, University of Nebraska-LincolnFollow
Darrell R. Mark, University of Nebraska-LincolnFollow

Date of this Version

January 2006

Comments

Published in 2006 Nebraska Beef Cattle Report. Copyright © 2005 The Board of Regents of the University of Nebraska.

Abstract

An economic analysis was conducted using feedlot performance, current feed ingredient prices, trucking, and cost of feeding inputs to determine economics of feeding wet distillers grains plus solubles (WDGS) at five dietary inclusions. The analysis also incorporated positive corn basis into the model. Cattle returns are greatest when incorporated WDGS is fed at 30 to 40% of DM at feedlots located between 0 and 60 miles from the plant. As distance of the feedlot increases from 60 to 100 miles from the plant, optimum inclusion is between 20 and 30% of dietary DM. Either a 5 or 10 cent positive corn basis decreases net returns on cattle by approximately $2 for each $0.05 increase in corn bushel price, but optimum inclusion amounts do not change based on distance from the plant. Results indicate more than just the cost of the product influence the economics of feeding WDGS.