Iowa Farmer Today
06-24-06
Ethanol expansion gives boost to state’s livestock production
By Jeff DeYoung, Iowa Farmer Today
AURELIA -- One whiff of the aroma coming from the freshly dumped 15-ton pile
of distillers grains would have most casual observers looking for the pancakes.
It’s no wonder his cattle find the feed so appetizing, says Paul Pingel.
Paul and his father, Myron, have been feeding modified wet distillers to their
cattle for just over two years. Syrup is added to the dried product at an ethanol
plant in nearby Marcus.
“The syrup is added until it’s 45 to 50 percent dry matter,” Paul says. “The cattle
just love it. It’s so moist and it smells so good, they just dig right in.”
The Pingels farm near here in Cherokee County. Along with their feedlot, they
also operate a wean-to-finish hog operation on their Northwest Iowa farm.
Cattle aren’t the only beneficiaries of the ethanol co-products. The Pingels use
the dried product in their hog operation, using it in rations from mid-nursery to
finish.
“We use an inclusion rate of 10 percent, which most say is the level you should
use,” Paul says. “We get it from the same plant, and it just works great.”
While the dried product represents a tenth of the hog rations, roughly 20 to 25
percent of the wet product is used in feedlot rations, along with high-moisture
corn, silage, hay and a liquid protein supplement.
Myron says the wet distillers work well for cattle just arriving at the feedlot.
“We’ve found it to be an excellent starter ration. It really gets those calves to the
feedbunk,” he says.
Another benefit is improved average daily gain (ADG). Before using wet distillers,
their cattle had a 2.96 pounds per day ADG. With wet distillers, the ADG was
3.20 lbs./day.
“They’re gaining faster with a less-expensive feed,” Paul notes.
The increased availability of ethanol co-products should help producers save on
feed costs for cattle and hogs, says John Lawrence, director of the Iowa Beef
Center and Extension livestock marketing economist at Iowa State
University.
Lawrence says the fed cattle and dairy industries have seen the biggest effect.
“Those industries are better positioned to use wet distillers grains,” he says.
“Because of the expense of drying the co-products, the hog and poultry
industries are not as well positioned. But, the availability is increasing.”
Lawrence says a 2005 survey of feedlots with 500 or more head indicated 70
percent were using some sort of ethanol co-product.
“As more plants continued to come on line, that (number) undoubtedly went up,”
he says.
“With more plants, they are now closer to the feedlots, and producers are better
able to find the feed.
“As more of the dried feed becomes available and the price goes down, you will
see more widespread use of it in the hog industry. Once those plants get the
kinks out and the feed quality is more consistent, more and more hog producers
will look to using it.”
With a cheaper feedstuff avail-able to producers, Lawrence says it seems logical
some producers will take advantage of that availability and look to expand
operations.
“Environmental regulations are a stumbling block for those who want it to be, but
when you look at the feedlots with over 1,000 capacity, they are growing. Those
with less than 1,000 are not growing.
“Regardless of size, feedlots need to be environmentally sound, so there is a
tremendous growth opportunity there for the cattle industry.”
Lawrence says a challenge could be corn availability. As more plants are
constructed in Iowa, the state could eventually become a net importer of corn, he
says.
Higher corn prices, Lawrence says, could mean higher co-product prices as well.
Paul Pingel says producers in his area have increased their use of distillers,
almost to the point where it is difficult to purchase.
“You have to place your order well ahead of time,” he says. “It takes us just under
a week to use the 15 tons, so you have to plan ahead.”
Myron was involved with the plant, Little Sioux Corn Processors, when it was
being developed. He says some were worried the plant would not be able to sell
the co-products.
“The supply is tight, so that’s not a problem,” Myron says. “They’ve done a good
job of merchandising, and I think it’s gone much better than people thought it
would.”
Paul says they are able to use the modified wet distillers before it can spoil,
although summer months can be a challenge. If the product sits for more than a
week, there is some spoilage, he says.
Paul also believes there is room to grow, noting more plants are being planned in
Northwest Iowa and neighboring states. While he has some concerns over
environmental regulations, he says there are no concerns when it comes to the
feed.
“It just has been an excellent feed for us, both with the cattle and hogs,” Paul
says.
“It has been very cost-effective, and the performance in the feedlot has improved
as well. We just couldn’t be happier with how it has worked in our operation.”