88 ■ ANGUSJournal ■ February 2007

Considering this country’s enthusiasm forenergy independence, it is not

surprising that biodiesel production jumpedthreefold in the U.S., from 25 million gallons(gal.) in 2004 to 75 million gal. in 2005. TheNational Biodiesel Board predicts that it willtriple again this year, with a final tally of morethan 250 million gal. produced in 2006.

With a score of new plants going on lineduring the next 24 months, analysts arespeculating that 2007’s production figurecould reach 750 million gal.

At present, 85%-90% of U.S. biodiesel isderived from soybeans. As a result, 68% ofthe total protein meal production in the U.S.is soy-based. Canola meal runs a distantsecond with a 12% share of this country’sprotein meal production, but that couldchange in the near future.

Corn, which competes directly withsoybeans for farm acres in the Midwest, hasseen record demand as ethanol plantscontinue to take an increasingly larger shareof U.S. production. U.S. Department ofAgriculture (USDA) analysts predict that thiswill lead to more corn production next year,with acreages increasing nationally by 11%.They add that most of that expansion will beat the expense of soybean production.Recent estimates indicate that U.S. farmerswill be planting 4 million fewer soybean

acres in 2007 than they did in the previousyear.

North Dakota State University Extensionbeef specialist Greg Lardy points out thatuntil recently, it was the protein meal, whichis used extensively as swine and poultry feed,and not the oil that produced the highesttotal revenues for the soybean crushers.

“Because of the digestibility and theamino acid content, those industries preferusing soybean meal,” he says. “It is what hasbuilt the soybean market in the U.S.”

While USDA analysts do predict increasesin poultry and hog production in 2007,those increases wouldn’t be great enough tostimulate the kind of demand that wouldeffectively compete with corn for acreage.

Considering the circumstances, ifbiodiesel producers wish to sustain their

Beef operations less likely to benefit from soy-based biodiesel, but increased production of oilseed biodiesel could change that scenario.

Story & photos by Ed Haag

Biodiesel Contributesto Protein Inventory

Biodiesel Contributesto Protein Inventory

Biodiesel Protein 02.07:Louisville Preview 1/16/07 3:39 PM Page 0088

February 2007 ■ ANGUSJournal ■ 89

ambitious expansion schedule, they will haveto look increasingly to oilseed crops such ascanola and rapeseed to make up for lostsoybean acreage. Also contributing to thispossibility is the fact that the soybean, whencompared to most oilseeds, is not an efficientproducer of oil.

“Canola seems to be the top choice forbiodiesel production in the northern part ofNorth Dakota and into Canada,” Lardy says.“It is because the oil yield per acre issubstantially more with canola than it is withsoybeans.”

Canola, which is 40% oil, produces 127gal. to the acre, while soybeans, at 20% oil,produce 48 gal. to the acre (see Table 1).

Lardy adds that while soybean mealremains the first choice for the poultry andswine industry, canola meal is well-suited tobovine digestive systems.

“Canola meal is certainly an acceptableprotein source for beef cattle,” he says, addingthat the ruminal escape value is similar to

CONTINUED ON PAGE 90

Table 1: Oil potential of various cultivars

Crop Kg/ha Liters /ha Lb./acre Gal./acreCorn (maize) 145 172 129 18

Cashew nut 148 176 132 19

Oats 183 217 163 23

Lupine 195 232 175 25

Kenaf 230 273 205 29

Cotton 273 325 244 35

Hemp 305 363 272 39

Soybean 375 446 335 48

Coffee 386 459 345 49

Linseed (flax) 402 478 359 51

Hazelnuts 405 482 362 51

Pumpkin seed 449 534 401 57

Mustard seed 481 572 430 61

Sesame 585 696 522 74

Safflower 655 779 585 83

Sunflowers 800 952 714 102

Cocoa (cacao) 863 1,026 771 110

Peanuts 890 1,059 795 113

Rapeseed 1,000 1,190 893 127

Olives 1,019 1,212 910 129

Castor beans 1,188 1,413 1,061 151

Pecan nuts 1,505 1,791 1,344 191

Jojoba 1,528 1,818 1,365 194

Jatropha 1,590 1,892 1,420 202

Macadamia nuts 1,887 2,246 1,685 240

Brazil nuts 2,010 2,392 1,795 255

Avocado 2,217 2,638 1,980 282

Coconut 2,260 2,689 2,018 287

Oil palm 5,000 5,950 4,465 635

Source: U.S. Department of Agriculture.

@Left: Canola production will grow with the biodiesel industry

Lardy sees canola meal playing an increasingly important role in the resurgence of backgrounding inregions that don’t have ready access to low-cost byproducts like distillers’ grains.

Biodiesel Protein 02.07:Louisville Preview 1/19/07 8:41 AM Page 0089

soybean meal, and it is an effective proteinsupplement for nursing calves, growing andfinishing cattle, and beef cows.

Because canola meal, like sunflower meal,is low in energy, beef producers shouldconsider it a protein source and limit itsintake to no more than 2-3 pounds (lb.) perday per animal, Lardy says. “Canola mealisn’t like distillers’ grains. You can’t use it inhigher volumes as a replacement for corn.”

Instead, he sees canola meal playing anincreasingly important role in the resurgenceof backgrounding in regions that don’t haveready access to low-cost byproducts likedistillers’ grains.

“If corn remains at $3-plus a bushel longterm, one of the possible scenarios thatcould play out in the beef industry is thereturn to less time in the feedlot finishingcattle,” Lardy says. “The corn feeding period

might be only 100 to 150 days as opposed to200 days.”

Canola meal would be used as a proteinsupplement in a slow-growth,backgrounding diet that used low-qualityforage as a primary feed source. “This couldoffer a cost-effective alternative to a longerfinishing period,” he says.

Decisions on the use of canola meal inbeef cattle operations should be based oncost and availability of competing proteinsupplements, Lardy says, noting that theaddition of two large crushing plants inNorth Dakota will increase the availability ofcanola meal to beef producers in his state.“The question is what will happen whenthese plants and the plants in Canada startchurning out a lot more canola meal.”

Out of CanadaAnticipating two decades ago the growing

demand for oilseed, Canadian canolabreeders from the Agriculture and Agri-FoodCanada (AAFC) Research Centre inSaskatoon, Sask., have succeeded indeveloping and are now in the process ofcommercializing new varieties that respondto what is rapidly becoming the new marketreality.

This isn’t surprising considering that theoriginal canola was first developed inCanada in the late 1960s when plantbreeders successfully altered the fatty acidcomposition in the rapeseed plant toimprove the nutritional qualities of its oiland the palatability of its meal to livestock.

A promising cultivar recently released byAAFC is Brassica juncea canola. A derivativeof common condiment mustard, this specieswas originally chosen for conversion tocanola quality due to its heat and droughttolerance. This new canola has demonstratedgood heat and drought tolerance during thedrought years of 2002 and 2003. Growersurveys conducted for those years haveidentified its benefits as heat and droughttolerance, seedling vigor, blackleg resistance,resistance to pod shatter and frost tolerance.

One major concern voiced by ageconomists in both Canada and the UnitedStates is that the precipitation demands oftoday’s canolas will restrict oilseed acreagesto higher-rainfall areas and consequentlylimit oilseed production to well below themarket demand for biodiesel.

The new canola responds to this concern.AAFC agronomists say that Brassica juncea’sdrought hardiness will extend the oilseedgrowing area into Canada’s dry southernprairies, adding an estimated 2 to 4 millionacres to the existing production base. Similarregions in the U.S. will also be able to takeadvantage of these new traits, assuringcrushers on both sides of the border of

Biodiesel Contributes to Protein Inventory CONTINUED FROM PAGE 89

90 ■ ANGUSJournal ■ February 2007

Fig. 1: Influence of supplemental protein vs. energy on the intake of dormanttallgrass prairie forage

Table 2: Nutrient analysis of canola meal vs. soybean meal

Nutrient Canola meal Soybean meal

Int’l Feed Number 5-03-871 5-20-637TDN, % 69.0 84.0NEm (Mcal/kg) 1.60 2.06NEg (Mcal/kg) 1.00 1.40CP, % 40.9 49.9Ruminal undegradability, % of CP 28 34Ether extract, % 3.47 1.6NDF, % 27.2 14.9ADF, % 17.0 10.0Calcium, % 0.70 0.40Phosphorus, % 1.20 0.71Magnesium, % 0.57 0.31Potassium, % 1.37 2.22Sulfur, % 1.17 0.46Copper, mg/kg 7.95 22.4Manganese, mg/kg 55.8 35Zinc, mg/kg 71.5 57.0

Source: North Dakota State University. Table adapted from Nutrient Requirements of Beef Cattle, 7th Edition (1996).

2.5

2

1.5

1

0.5

0

Inta

ke, %

BV

Supplement intake Forage intake

Low- High- Low- High-energy energy energy energy

Low-protein High-protein

Source: DelCurto et al., 1990b.

Biodiesel Protein 02.07:Louisville Preview 1/9/07 11:58 AM Page 0090

February 2007 ■ ANGUSJournal ■ 91

adequate oilseed stocks for the production ofbiodiesel and protein meal.

In addition, AAFC plant breeders havefocused on improving the quality of the newcanola’s meal. It has a thinner seed coat thanpreviously released varieties, resulting inreduced meal fiber content and increasedprotein content. The lower fiber contentincreases the energy content of the meal andthe digestibility of energy and protein,thereby enhancing the overall feed value ofthe meal.

Another promising new canola currentlyunder development is one derived fromSinapis alba, or yellow mustard. The averageprotein content of its meal is 48%, with somecultivars producing meal with proteincontent as high as 54%. The crude fiber levelin the meal is only 8%, which is significantlyless than the 12% crude fiber level inconventional canola meal. AAFC researcherspredict that the meal from this new canolawill compete directly with high-proteinsoybean meal in the animal feed market.

New feeding opportunityWith the promise of robust and long-term

markets for ethanol and biodiesel — bothgenerators of high-protein byproducts —most agricultural analysts predict a surplusof protein-based livestock feed. Economists

from AgriFood Canada say that this surplusis expected to depress prices based onhistoric oilseed supply and livestock feeddemand factors. They note that rising outputof biodiesel is also expected to support theproduction of high-oil-content oilseeds, suchas canola/rapeseed, rather than theproduction of soybeans.

For Tim DelCurto, researcher and beefnutrition specialist at Oregon StateUniversity, this is good news. “We are goingto have some excellent supplemental proteinsources for beef cattle production,” he says.“This could help us out in the west.”

He notes that beef cattle producers in thewestern U.S. have been at an economicdisadvantage relative to other regions inNorth America due to the high cost ofwintering animals. Feeding costs — usuallyfor 1.5-2.5 tons of hay over the winter —represents 30%-50% of the gross revenuesfrom the production of one cow per year.

Ag economists are predicting that as thedemand for cropland increases — a directresult of the biofuel revolution — the priceof all commodities, including hay, willincrease.

With canola meal available as a low-costprotein supplement, beef producers in thewest could replace expensive hay and orgrain with low-cost grass-seed residue.

Oregon’s grass-seed industry produces morethan 1 million tons of crop residues annually.Washington state, Idaho and California alsohave crop residue surpluses beef producerscan draw upon.

DelCurto’s research has shown thatsupplemented protein, such as canola meal,stimulates the intake of the high-fiber residuewhile improving overall rumen function.

“By feeding a 35%-protein canola meal,you can meet a gestating cow’s protein needson 3 pounds a day,” he says. “Then that cowis going to maximize its intake of low-qualityforage.”

The addition of high-energy feed such ascorn actually depresses both the intake anddigestibility of low-quality forage. AsDelCurto explains, energy supplements tendto replace or substitute for the intake of low-quality forages. As a result, energysupplementation of low-quality forage oftenexerts little or no influence on beef cattleperformance.

He notes that responses to supplementalprotein are usually observed when the crudeprotein (CP) content of the basal forage isless than 8%, adding that if forageavailability is limited, responses tosupplemental protein are often not observedbecause of the animal’s inability to expressincreased intake.

Biodiesel Protein 02.07:Louisville Preview 1/9/07 11:58 AM Page 0091