Economic Analysis of Swine Diet Cost Versus Manure Value

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http://www.extension.org/67703 In high yielding row crop intensive regions the role of swine manure as a crop nutrient source has increased in value, replacing the purchase of increasingly expensive commercial fertilizer by providing the nutrient needs of crops. Nutrients from manure are recycled to fertilize high yielding crops in an environmentally friendly, synergistic system. Access to the value of the nutrients in manure has been a primary motivation for constructing swine facilities. However, as the energy cost of swine diets has increased, feeding programs have been dramatically changed. Changes in ingredients composition has changed from manipulations of dietary formulations. These changes can alter the nutrient composition of the resulting manure and thus the nutrient value of the manure as fertilizer. What does not occur is the consideration that owners/users of the manure composition and if changes need to be made in application rates for optimizing fertilizer rates for crops.

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<ul><li> 1. Economic Analysisof Swine Diet CostVs Manure ValueDave Stender* and Matt SwantekISU Swine Field Specialist712-261-0225 or dstender@iastate.edu </li> <li> 2. Formulating for better utilization of nutrientsNational Center for Manure and Animal Waste Management - Summary Lower dietary CP results in reduce N excretion rangingfrom 28 to 62% The average reduction in N excretion per unit of dietary CPreduction was 8.4% Research has shown that phytase addition will reduce Pexcretion from 25 to 35%. . </li> <li> 3. Objective: To illustrate dietary formulationsaffect the fertilizer value of manure Construction of a barn manures worth Not all manure is equalo Diet formulation impacts manure nutrientvalueo Full $ value (NPK) manure versus $ nitrogeno Effect of water management/wastageo Determination of manure yield per pig usinga manure tests </li> <li> 4. Methodology A swine feeding template was modified toincorporate NRC 2012 Swine Nutrient fornitrogen (N) and phosphorus (P)requirements. Total dietary N and P were calculated and thedifference between totals and requirementswas consider nutrient excretion. Feeding programs and scenarios wereanalyzed </li> <li> 5. Looking at an Example using the FollowingDietary &amp; Performance Assumptions:Performance Start wt 12 lb End wt 270 lb Feed 698 lb ADG 1.51 ADFI 4.10 F:G 2.71 Days 170Ingredient pricing, $/tonCorn $7.00/buSBM (46%) $400Lysine (AA) $2,800Premix $720Premix/Phy $620DDGS $300 </li> <li> 6. Feeding Scenarios Lysine (AA), Phytase, &amp;/or DDGSLysine /AA no yes yes yes yes High AA no hiAA noDDGS no no no yes yes yes yes no yesPhytase no no yes no yes yes yes yes noCorn 530.9 567.3 567.3 441.2 441.4 453.0 404.4 579.5 404.1SBM (46%) 148.0 110.2 110.2 75.5 75.2 59.9 113.6 94.3 113.9Lysine 1.4 1.4 1.4 1.4 5.1 0.0 5.1 0.0MDL ISU-Pmx 13.4 13.4 13.4 0.0 0.0 0.0 13.4MDL ISU-Pmx-Phy 13.4 13.4 13.4 13.4 13.4 0.0DDGS 160.9 160.9 160.9 160.9 0.0 160.9Total lb/Pig 698 698 698 698 698 698 698 698 698$ Feed /pig $105.49 $104.40 $103.73 $105.82 $105.13 $108.69 $106.26 $107.25 $106.95Feeding Scenario </li> <li> 7. Feed Savings per Pig in OurExample Base diet $105.49 feed cost per pig Adding lysine $104.40 feed cost per pig Feed savings per pig = 1.09 How much is the manure reduction? From the model 6.92 lb of N per pig in manure isreduced to 4.77 with low protein added aminoacid diet. A difference of 2.15 lb N worth$.55/lb is $1.18 reduction in manure N value </li> <li> 8. Models Nitrogen projectionsBased on NRC 2012CS CSL CSL CSL CSL CS-hi-AA CS CS-hi-AA CSphy DDGS phy-DDGS phy-DDGS phy-DDGS phy DDGSDietary 21,120 18,480 18,480 22,200 22,200 21,480 24,840 17,640 24,840Retained 12,720 12,720 12,720 12,720 12,720 12,720 12,720 12,720 12,720Excreted 8,280 5,760 5,760 9,480 9,480 8,760 12,120 4,920 12,120lb per 1,000 gal 58 40 40 66 66 61 85 34 85$0.55 /lb value $31.82 $22.13 $22.13 $36.43 $36.43 $33.66 $46.57 $18.91 $46.57Gallons of manure produced / group 143,136 (0.7 x 170 x 1200 pigs) x 1000Feeding ScenarioEstimated Nitrogen, lb / 1,200 pigsLowest N manure from diet </li> <li> 9. Another Example ComparingDDGS addition Adding lysine diet - $104.40 feed cost per pig Adding DDGS - $105.82 Feed cost increase per pig = $1.42 How much is the manure increase? From the model 4.77 lb of N per pig in manureis increased to 7.87 with DDGS A difference of 3.10 lb N worth$.55/lb is $1.71 increase in manure N value </li> <li> 10. Models Phosphorus projectionsBased on NRC 2012CS CSL CSL CSL CSL CS-hi-AA CS CS-hi-AA CSphy DDGS phy-DDGS phy-DDGS phy-DDGS phy DDGSDietary 3,960 3,720 3,240 4,560 4,080 4,080 4,200 3,240 4,680Retained 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800Excreted - P 2,040 1,920 1,440 2,760 2,280 2,160 2,400 1,320 2,880Excreted - P2O5 4,672 4,397 3,298 6,320 5,221 4,946 5,496 3,023 6,595lb per 1,000 gal 33 31 23 44 36 35 38 21 46$0.55 /lb value $17.95 $16.89 $12.67 $24.29 $20.06 $19.01 $21.12 $11.62 $25.34Gallons of manure produced / group 143,136 (0.7 x 170 x 1200 pigs) x 1000Feeding ScenarioEstimated Phosphorus, lb / 1,200 pigs </li> <li> 11. Feed Savings per Pig in OurExample Lysine diet $104.40 feed cost per pig Adding Phytase- $103.73 feed cost per pig Feed savings per pig = $.67 How much is the manure reduction? From the model 3.7 lb of P per pig in manure isreduced to 2.74 with phytase added. A difference of .96 lb N worth$.55/lb is $.53 reduction in manure P value </li> <li> 12. Diet changes impact $/1000 gal$61.77$50.67$44.89$74.67$69.18$65.01$80.09$41.52$84.77$0$10$20$30$40$50$60$70$80$90$100CS CSL CSL-phy CSL-DDGS CSL-phy-DDGS CS-hi-AA -phy-DDGSCS-phy-DDGS CS-hi-AA -phy CS-DDGSK2O P2O5 N </li> <li> 13. Range in Value Because ofFeed Formulation The range from the highest value manureto the lowest is $43.25/1000 gallon In our model 8.3836 pigs per 1000 gallon $5.16 difference per pig About $23,500 on a 2400 hd site </li> <li> 14. Lowest cost haul field next tobarn leading to potential over-application of nutrients in thatfield, especially P an K Instead of over application of P and K on afield next to the barn testing veryhigh, transport the manure to a field with lowP and K soil test. Economically, cost of haul, time is a hugefactor (lost opportunity income from shorthaul jobs) </li> <li> 15. Nutrient dense, higher valuemanure is more likely to betransported to moreenvironmentally friendly fields For example, if hauling cost is$15/ 1000 gal and it takes twice as long tohaul to a low P and K testing field, thenopportunity cost is $30/1000 gal Would you be more likely to take extratime to haul a tank worth $85/1000 gal or$42 to a low testing field? </li> <li> 16. The Value of N in Manure Through diet formulation the value of N inManure can be as low as $19 of N per 1000gal, or 1.9 cents per gallon. Manure application expense is in the $15/1000gal or 1.5 cent per gallon range If the farm has 30% water wastage the haulingcost increases 30% (1.5 *130% = 1.95) Assuming very high P and K (no crop benefit during lifeof the barn), even $900/ton($.55/lb N) anhydrousammonia commercial fertilizer would beeconomically superior to this swine manure </li> <li> 17. Drinkers - water usage/waste </li> <li> 18. Water usage/wastage changesthe manure test Rule of thumb is 13% dry matter with nowater wastage or wash water. Typically 6 to 7 % solids for most manuretests Goal is 10% solids manure values willincrease </li> <li> 19. Thinking in terms of nutrientyield check in pigs Base line diet without added DDGS will yield 6.92lb. of N per pig. Check your N output per pig with the followingformulas: First, calculate accurate gallons removed per year cubit feet times 7.5 Divide by total number of pigs on feed for the yearto get gallons per pig 1000 divided by gallons per pig to get number ofpigs per 1000 gallons Manure test value (# per 1000 gal) divided bynumber of pigs per 1000 gallon equals lb per pig </li> <li> 20. Take Home Points Diet formulation will change the nutrient contentand value of manure substantially Dont build a swine facility for manure unless youhave influence on diet formulation Water usage/wastage will change the manure test Higher manure nutrient content will make it morefeasible to haul to low soil test fields Manure nutrients are variable and accurate testingis essential Measure the depth of manure applied per year todetermine the gallons of manure per pig, anddetermine the nutrient yield and value on a per pigor per space basis using the manure test values </li> <li> 21. ThanksDave StenderISU Swine FieldSpecialist(712)225-6196Mobile (712)261-0225dstender@iastate.edu </li> <li> 22. Manure Value for Crop ISUEO Manure Calculator www.extension.iastate.edu/agdm/livestock/xls/b1-65manurecalculator.xls </li> <li> 23. Manure Sampling How to Interpret Your Manure Analysis http://www.agronext.iastate.edu/soilfertility/info/PM3014.pdf How to Sample Manure for NutrientAnalysis http://www.extension.iastate.edu/Publications/PM1558.pdf </li> </ul>