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The Role of Animal Agriculture in the Bioeconomy

The Role of Animal Agriculture in the Bioeconomy. Allen Trenkle Iowa State University. Historical Background of Biofuels. Mid-80’s Expansion of wet milling of corn producing high-fructose sugar Co-products mostly exported Established value of co-products as livestock feeds

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The Role of Animal Agriculture in the Bioeconomy

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  1. The Role of Animal Agriculture in the Bioeconomy Allen Trenkle Iowa State University

  2. Historical Background of Biofuels • Mid-80’s • Expansion of wet milling of corn producing high-fructose sugar • Co-products mostly exported • Established value of co-products as livestock feeds • Cattle feeders wanted price related to price of corn • Early-90’s • Interest in ethanol production from dry-grind plants • Slow to develop in Iowa (Developed in MN, NE, SD) • Established value of co-products as cattle feed • Promoted integration of ethanol plants and cattle feeding • First Iowa dry-grind plants coordinated with cattle production • Late 2004 to present • Rapid expansion of building ethanol plants • Concentration of ownership of ethanol plants • Co-products evolved as commodity feeds

  3. Changes in Agriculture • Animal power to tractors • From growing fuel raised on farm to importing fuel • 2. Crops: Corn-Small grains-Meadow to less crop diversification • Change to corn and soybeans • Use of ag chemicals and external sources of energy • Concentration of livestock into larger units • All farms had livestock to few farms having livestock • 3. Next change: Production of biofuels • Alter expectations of agriculture • Alter cropping systems • Alter investments in agriculture • Role of livestock? • The consequences of this change could be greater than • past changes – Is the livestock sector prepared?

  4. Expectations of U. S. Agriculture • Production of food – Long-term mission • High quality • Safe • Low cost • 2. Production of biofuels – New role • Liquid fuels suitable for internal combustion engines • Corn grain is predominant feedstock used for ethanol • 3. Livestock production • Expectations of society not clear • Small vs. Large – Location • Source of capital • Might begin moving off-shore

  5. Use of Corn (2005-2006)

  6. Ethanol Production in IowaDry-Grind Plants aCould be feedlot (backgrounding, finish), beef cows, dairy cows, replacement females. Based on feeding 40 lbs wet DGS/d.

  7. Influence of Biofuels on Livestock Production • Competition for feedstock (starch & cellulose) • Impact on feed prices • DGS has not helped to solve the problem • Dry DGS is a commodity feed and can be moved • Plants have dryers so wet DGS priced on dry • Low energy value of dry DGS for monogastrics • Develop corn designed for ethanol rather than feed • High starch, lower protein, add amylase • 2. Land values • Cost of land • Availability of land for grazing • 3. Flow of nutrients • Phosphorus (To some extent nitrogen)

  8. Influence of Biofuels on Livestock Production • 4. Effects of feeding DGS on animal health and performance • Availability of amino acids • Availability of energy • Mycotoxins • Antibiotics • Sulfur (ruminants) • High nitrogen intakes • 5. Quality and safety of animal food products • Effects of unsaturated oil • 6. Competition for energy and water • Natural gas – also used by agriculture • 3 to 6 gal water per gal ethanol – livestock • also use high volumes of water

  9. Use of Biomass for Ethanol ProductionImplications for Livestock Industries • 1. No assurance more corn will be available for livestock • Greater cost of producing ethanol from cellulose/hemicellulose • Corn plants have been built – Corn grain will continue to be used to produce ethanol • Federal policy would have to direct change in use • of corn grain • Market forces will not cause a change • 2. Supply of biomass • Corn stover is current primary supply of biomass in Iowa • Compete for a feed supply fed to cattle • Develop perennial crop – Switch grass • Increase competition for use of land available • for grazing or production of grain • 3. No co-product is produced that has feed value for animals • Maybe a protein fraction (Need energy to feed animals)

  10. Possible Consequences of Biofuels • 1. Livestock industries remain a competitor for feedstocks • DGS remain a commodity • Exacerbate the problems of agriculture • October 12, 2007 – A broad coalition of organizations representing • animal agriculture urge congressional leaders to oppose • increasing RFS for grain-based ethanol • 2. Livestock industries coordinate with production of biofuels • and address some of the issues being raised • Food and fuel • Net energy balance of producing biofuels • Sustainability of biofuels production • Economic • Ecologic • Rural economic development

  11. Opportunities • Pricing of DGS for livestock • Establishing a price for livestock not simple • Price relative to corn at a price beneficial to livestock • and ethanol producers • 2. Develop coordinated food and energy systems • Produce food(s) and energy • 3. Improve net energy balance of the coordinated system • 4. Recycle nutrients • Reduce energy inputs for agriculture production • Reduce environmental impact of agriculture • 5. Grow biofuels and livestock industries in Iowa

  12. Integrated Livestock and Ethanol ProductionIowa • Feed wet DGS • Save energy for drying DGS • Recycle water as wet DGS • Benefits of Manure as Fertilizer • Stop importing P & K • Reduce N imported • Benefits of anaerobic digester • Reduce use of natural gas • Conserve manure nutrients • Limitations • Majority of feedlots not • designed for this system • Requires extensive • coordination • Anaerobic digesters not well • developed Corn Ethanol Fuel DGS Feedlot Food CH4 Identified markets Fertilizer Branded products Manure Anaerobic Digester Future: Use CO2 from ethanol & digester Grow algae Synthetic genomics – synthetic cells

  13. Beef Herd to Support Feedlots1000 Head Feedlot Turned 2 x per Year aCorrected for water intake from pasture.

  14. Feeding Wet DGS Recycles WaterWet DGS (32% DM) • Growing cattle fed 70% DGS, Feedlot cattle fed 50% Cows fed 50%, Replacement heifers fed 60% • 1000 head feedlot (turned 2x per year) 10.78 mil lbs DGS DM fed per year 3.8% of output of 50 mgy ethanol plant • Wet DGS would replace 2.75 mil gal water/yr 15.9% of water requirement of cattle • Water use • 50 mgy ethanol plant - 200 to 250 mgy water • 26.5 beef units to use DGS from 50 mgy plant - 460 mgy • Feed wet DGS: Recycle 29 to 36% of water • used by ethanol plant

  15. Integrating Cattle and Ethanol Improves Net Energy Biofuel energy/Petroleum energy Based on EBAMM model University of California-Berkeley Benefits • Reduce use of commercial nitrogen fertilizer • Greater value of DGS • Reduce use of natural gas • Feed wet DGS • Dependent on feeding high levels of wet DGS to cattle • How much can be fed? + Cattle + Cattle + Digester

  16. Effects of Feeding Wet Distillers Grains on Carcass Measurements – Steers and HeifersFour Experiments Medium = 20 or 28%, high = 40% wet DGS AOV: ADG P < 0.04, Dress % (P < 0.05) Bonferroni t-test: No significance

  17. Steers Fed Modified Wet Distillers Grains(52% DM) Cattle: 690 lb steers fed 186 days, implanted 2 x. Carcass value based on premiums and discounts. DGS 52% DM.

  18. Net Income Steers Fed Modified Wet DGS Net income from feeding 690 lb steers a corn-based diet or modified DGS. Net income based on carcass value and related to price of corn and DGS (as % of corn price).

  19. Steers and Heifers Fed Modified Wet DGS(52% DM) aFed 120 days bFed 169 days. Control diet 86% corn and supplement, 10% corn silage, 4% tub-ground grass hay. One combination implant in the cattle on day 1. DGS 52% DM.

  20. Steers and Heifers Fed Modified Wet DGS Carcass value based on premiums and discounts.

  21. Net Income Heifers Fed Modified Wet DGS Net income from feeding 725 lb heifers a corn-based diet or modified DGS. Net income based on carcass value and related to price of corn and DGS (as % of corn price).

  22. Net Income Steers Fed Modified Wet DGS Net income from feeding 830 lb steers fed a corn-based diet or modified DGS. Net income based on carcass value and related to price of corn and DGS (as % of corn price).

  23. Steers and Heifers Fed Wet DGS (32% DM)2007 Experiment (Preliminary data at 84 days) Control diet 86% corn and supplement, 10% corn silage, 4% tub ground grass hay. One combination implant in the cattle on day 1.

  24. Conclusions • High levels of wet DGS can be fed to cattle • Up to 60% of dry matter intake • Satisfactory performance of the cattle can be maintained • Effects on carcass quality can be managed • Feeding high levels of DGS seems to decrease marbling to some extent • Wet DGS can be priced relative to corn grain • Price should be less than corn grain on a dry basis • Provide economic incentive to cattle producers • Need to allow economic return to ethanol plant for co-product

  25. Implications • Integrating livestock with production of biofuels addresses many of the concerns being expressed • Energy obtained from petroleum energy invested • Food: production/price • Sustainability: environmental/economic • Rural development • Water conservation

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