nutrition notes logo white
Innovation & Research from Kent Nutrition Group
Nutrition Notes

When Corn is Cheap: Should I Still Feed Ethanol By-Products?

When corn is cheaper, this is a familiar question. Many producers are under the impression that if DDG or wet byproducts are higher priced than corn, they are not a good buy. Actually, they can still save money on their total feed cost by using byproducts, because they are going to use a lower inclusion balancer instead of a 40% finisher fed at 1-2 lb/head/day. If your customer insists on dropping distillers, that is his decision, I am just providing you the economic facts in this scenario.

I ran some projections using corn, hay and 40-20 vs corn, hay, WDG and balancer. I looked at $3.20 corn down to $2.50/ bushel. I used modified distillers grain at a constant price of $65/ton, which is equal to about $3.40 corn. WDG was used at 20% of the diet dry matter in both cases.

Below is a table showing costs for this comparison. It was run using 900-lb steers fed to 1500 lb. Obviously, purchase price will affect cost of gain and breakeven, but this gives you a general idea of the differences.

Conv WDG Conv WDG
Corn Price $3.20 $3.20 $2.50 $2.50
ADG 4.07 4.07 4.07 4.07
F/G 689 689 689 689
Cost of Gain $76.72 $68.47 $67.61 $61.51
Breakeven/cwt $103 $100 $99 $97
Total Feed $ $345 #297 $292 $256

As you can see, the advantage is $48 with $3.20 corn and $36 with $2.50 corn. The rest of the ingredient costs were hay at $80 and supplements at approximately $500/ton. Each situation needs to be evaluated on its own merit, but hopefully this gives you some figures to help your producers make a wise decision.

NN 09-12-16 Cheap Corn Feed Ethanol By-Products 2019

Connect with Kent!

Get the latest Kent news and announcements.
By entering your email address, you agree to receive occasional messages in accordance to our Privacy Policy. You may unsubscribe at any time.
close-link
Scroll to Top
Send this to a friend