Economic Analysis of Swine Diet Cost Vs Manure Value

Dave Stender* and Matt SwantekISU Swine Field Specialist712-261-0225 or dstender@iastate.edu

Formulating for better utilization of nutrients National Center for Manure and Animal Waste Management - Summary

Lower dietary CP results in reduce N excretion ranging

from 28 to 62%

The average reduction in N excretion per unit of dietary CP

reduction was 8.4%

Research has shown that phytase addition will reduce P

excretion from 25 to 35%.

.

Objective: To illustrate dietary formulations affect the fertilizer value of manure

• Construction of a barn – manure’s worth• Not all manure is equal

oDiet formulation impacts manure nutrient value

o Full $ value (NPK) manure versus $ nitrogen o Effect of water management/wastageo Determination of manure yield per pig using

a manure tests

Methodology • A swine feeding template was modified to

incorporate NRC 2012 Swine Nutrient for nitrogen (N) and phosphorus (P) requirements.

• Total dietary N and P were calculated and the difference between totals and requirements was consider nutrient excretion.

• Feeding programs and scenarios were analyzed

Looking at an Example using the Following Dietary & 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 170

Ingredient pricing, $/tonCorn $7.00/bu

SBM (46%) $400

Lysine (AA) $2,800

Premix $720

Premix/Phy $620

DDGS $300

Feeding Scenarios – Lysine (AA), Phytase, &/or DDGS

Lysine /AA no yes yes yes yes High AA no hiAA no

DDGS no no no yes yes yes yes no yes

Phytase no no yes no yes yes yes yes no

Corn 530.9 567.3 567.3 441.2 441.4 453.0 404.4 579.5 404.1

SBM (46%) 148.0 110.2 110.2 75.5 75.2 59.9 113.6 94.3 113.9

Lysine 1.4 1.4 1.4 1.4 5.1 0.0 5.1 0.0

MDL ISU-Pmx 13.4 13.4 13.4 0.0 0.0 0.0 13.4

MDL ISU-Pmx-Phy 13.4 13.4 13.4 13.4 13.4 0.0

DDGS 160.9 160.9 160.9 160.9 0.0 160.9

Total 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 $106.95

Feeding Scenario

Feed Savings per Pig in Our Example

• 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 is

reduced to 4.77 with low protein added amino acid diet.

• A difference of 2.15 lb N worth $.55/lb is $1.18 reduction in manure N value

Model’s Nitrogen projections

Based on NRC 2012

CS CSL CSL CSL CSL CS-hi-AA CS CS-hi-AA CS

phy DDGS phy-DDGS phy-DDGS phy-DDGS phy DDGS

Dietary 21,120 18,480 18,480 22,200 22,200 21,480 24,840 17,640 24,840

Retained 12,720 12,720 12,720 12,720 12,720 12,720 12,720 12,720 12,720

Excreted 8,280 5,760 5,760 9,480 9,480 8,760 12,120 4,920 12,120

lb 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 $46.57

Gallons of manure produced / group 143,136 (0.7 x 170 x 1200 pigs) x 1000

Feeding Scenario

Estimated Nitrogen, lb / 1,200 pigs

Lowest N manure from diet

Another Example Comparing DDGS 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 manure

is increased to 7.87 with DDGS • A difference of 3.10 lb N worth

$.55/lb is $1.71 increase in manure N value

Model’s Phosphorus projections

Based on NRC 2012

CS CSL CSL CSL CSL CS-hi-AA CS CS-hi-AA CS

phy DDGS phy-DDGS phy-DDGS phy-DDGS phy DDGS

Dietary 3,960 3,720 3,240 4,560 4,080 4,080 4,200 3,240 4,680

Retained 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800

Excreted - P 2,040 1,920 1,440 2,760 2,280 2,160 2,400 1,320 2,880

Excreted - P2O5 4,672 4,397 3,298 6,320 5,221 4,946 5,496 3,023 6,595

lb 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 $25.34

Gallons of manure produced / group 143,136 (0.7 x 170 x 1200 pigs) x 1000

Feeding Scenario

Estimated Phosphorus, lb / 1,200 pigs

Feed Savings per Pig in Our Example

• 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 is

reduced to 2.74 with phytase added.• A difference of .96 lb N worth

$.55/lb is $.53 reduction in manure P value

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

$100

CS CSL CSL-phy CSL-DDGS CSL-phy-DDGS CS-hi-AA -phy-DDGS

CS-phy-DDGS CS-hi-AA -phy CS-DDGS

K2O P2O5 N

Range in Value Because of Feed Formulation

• The range from the highest value manure to 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

Lowest cost haul – field next to barn leading to potential over-application of nutrients in that field, especially P an K• Instead of over application of P and K on a

field next to the barn testing very high, transport the manure to a field with low P and K soil test.

• Economically, cost of haul, time is a huge factor (lost opportunity income from short haul jobs)

Nutrient dense, higher value manure is more likely to be transported to more environmentally friendly fields

• For example, if hauling cost is $15/ 1000 gal and it takes twice as long to haul to a low P and K testing field, then opportunity cost is $30/1000 gal

• Would you be more likely to take extra time to haul a tank worth $85/1000 gal or $42 to a low testing field?

The Value of N in Manure• Through diet formulation the value of N in Manure

can be as low as $19 of N per 1000 gal, or 1.9 cents per gallon.

• Manure application expense is in the $15/1000 gal or 1.5 cent per gallon range

• If the farm has 30% water wastage the hauling cost increases 30% (1.5 *130% = 1.95)

• Assuming very high P and K (no crop benefit during life of

the barn), even $900/ton($.55/lb N) anhydrous ammonia commercial fertilizer would be economically superior to this swine manure

Drinkers - water usage/waste

Water usage/wastage changes the manure test• Rule of thumb is 13% dry matter with no

water wastage or wash water.• Typically 6 to 7 % solids for most manure

tests• Goal is 10% solids – manure values will

increase

Thinking in terms of nutrient yield check in pigs• Base line diet without added DDGS will yield 6.92 lb. of

N per pig.• Check your N output per pig with the following formulas:• First, calculate accurate gallons removed per year –

cubit feet times 7.5• Divide by total number of pigs on feed for the year to

get gallons per pig• 1000 divided by gallons per pig to get number of pigs

per 1000 gallons• Manure test value (# per 1000 gal) divided by number

of pigs per 1000 gallon equals lb per pig

Take Home Points• Diet formulation will change the nutrient content and value

of manure substantially• Don’t build a swine facility for manure unless you have

influence on diet formulation• Water usage/wastage will change the manure test• Higher manure nutrient content will make it more feasible to

haul to low soil test fields• Manure nutrients are variable and accurate testing is

essential• Measure the depth of manure applied per year to

determine the gallons of manure per pig, and determine the nutrient yield and value on a per pig or per space basis using the manure test values

Thanks

Dave Stender

ISU Swine Field Specialist

(712)225-6196

Mobile (712)261-0225

dstender@iastate.edu

Manure Value for Crop

• ISUEO Manure Calculator• www.extension.iastate.edu/agdm/livestock

/xls/b1-65manurecalculator.xls

Manure Sampling

• How to Interpret Your Manure Analysis• http://

www.agronext.iastate.edu/soilfertility/info/PM3014.pdf

• How to Sample Manure for Nutrient Analysis

• http://www.extension.iastate.edu/Publications/PM1558.pdf