Feedstuffs Outlook Farm Smart-Jan.24, 2015

Ron Lackey

Feed Ingredients & Byproducts

Feeding Specialist

Things to Consider Going

Forward…

The current world population sits at around 7.2

billion

The population is projected to increase by 1

billion over the next 12 years.

By 2050 the population is estimated to reach 9.6

billion!

It has been suggested that…

The global demand for meat is forecast to

increase by more than 55% by 2020.

This can be viewed as an opportunity as well as a

challenge

“Increased grain for food and feed has to be

generated from increased yields because there is

limited opportunity to increase cultivated land

area without adverse environmental impacts.”

Bio-economy is Creating More

Competition for Traditional Feed

Ingredients or Commodities

That Contain:

• Starch

• Sugar

• Fat

• Oils

• Cellulose (fibre)

$100

$125

$150

$175

$200

$225

$250

$275

$300

$325

- -

2007 2008 2009 2010 2011 2012 2013 2014Data Source: Daily Ontario Commodity Report

Corn vs. DDGS (C$/tonne)

Avg of Huron FOB Farm & Western Ont Feed Corn FOB Chatham, Sarnia, Aylmer Avg. DDGS Prices

$100

$150

$200

$250

$300

$350

$400

$200

$300

$400

$500

$600

$700

$800

- -

2007 2008 2009 2010 2011 2012 2013 2014Data Source: Daily Ontario Commodity Report

Soybean Meal vs. DDGS (C$/tonne)

Soybean Meal (Hamilton + $20) (left) FOB Chatham, Sarnia, Aylmer Avg. DDGS Prices

Extracting Oil from Distillers

An example of competitive use

The majority of ethanol producers in North America are reported to be extracting some quantity of oil from distillers grains.

Normal fat level of DDGS is approximately 11.5 -12%

Using fractionalization –reduces DDGS to 3-5% fat referred to as “low fat or low oil”

Using centrifuging-reduces oil content to 7-9% “reduced fat or oil”

Lower Oil in DDGS

Implications for Feed Industry

A lowered feeding value –particularly for monogastrics.

Lower prices – transparent

Most Ontario DDGS has 10.5% oil content.

As a livestock/feed producer need to know what product they are purchasing.

On going research to evaluate feed value for various species.

Strategies to Deal With Tighter

Feed Supplies

#1 - Grow more/better feed per acre.

#2 - Manage traditional ingredients to maximize

their feed value and optimize animal performance.

#3 - Take advantage of by-products, off spec., feed

grade feed ingredients- when available and cost

effective.

#4 - Produce/make use of new feed ingredients.

#2 - Managing Feed Ingredients…..

Greater use of Feed Additives

R&D and use of feed additives to extract more of

the nutrients from feed ingredients as well as

enhancing gut health and rumen function will

continue to expand.

E.g.- enzymes, yeasts and plant extracts,

probiotics, prebiotics

Potential new developments-Avian Polyclonal

Antibodies for beef cattle (vaccination)

#2 - Managing Feed Ingredients….

Focus on Fibre

There is presently and will continue to be a interest

in the fibre content of feed with the view to

improving it’s digestibility for monogastrics as well

as defining optimum levels as an effective fibre

source in ruminant diets for optimum ruminant

function.

Potential Energy Supplied to Pigs by Various Dietary Constituents

Constituent Crude Protein Crude Fat Starch Dietary

Sugars Fiber

kcal/g.

Gross energy 5.40 9.27 4.18 3.99 4.45

Digestible energy 5.38 7.60 4.37 3.85 0.12

Metabolizable energy 4.71 7.70 4.35 3.80 0.12

Net energy 2.82 6.91 3.54 2.75 -0.21

Source: Noblet and van Milgen, 2004

CAN WE CAPTURE\UTLILIZE

MORE ENERGY FROM FIBRE?

Grain Processing and Exogenous Amylases

for Feedlot Cattle (DiLorenzo et al., 2011)

Diets1 P-value2

Item DRC DRC+En

z

SFC SFC+En

z

Proc Enzyme

Digestibility, %

OM¥ 80.0 78.7 79.4 83.0 ns ns

Starch¥ 94.2 91.5 97.3 98.7 <0.001 ns

NDF 59.2 62.0 41.0 46.1 <0.001 ns

1diets contained 72% corn, DM basis ¥processing X enzyme interactions, P < 0.10.

Enzyme was Ronozyme RumiStar (DSM Nutr. Prod) added to provide 600 units/kg DM.

DiLorenzo et al. 2011. Livestock Sci 137:178-184

Grain Processing and Exogenous

Amylases for Dairy Cows (Weiss et al.,

2011)

Low Starch(26%)1 High Starch(31%)1 P-value2

DRC DRC+En

z

SFC SFC+En

z

Proc Enzyme

Total tract digestibility, %

OM 63.2 63.8 64.9 64.9 <0.05 ns

Starch 88.4 88.1 86.9 87.8 ns ns

NDF 49.2 51.2 50.1 50.7 ns 0.07

8 cows, Latin square design

1LS diet: 40% corn silage + 15% coarse-grind corn grain; HS diet: 30% corn silage + 26%

coarse-grind corn grain 2Starch X enzyme interactions, P > 0.10

Enzyme was amylase Ronozyme RumiStar (DSM Nutr. Prod) added at 300 units/kg DM.

Weiss et al. 2011. JDS 94:2492-2499

Promising New Enzymes

Exciting research by Ming Fan and others at the U

of G.

Identification and isolation of novel alkaline

phosphatase – an important enzyme for gut

health of weanling pigs – antibiotic replacement.

Cellulase enzyme isolated from hindgut of pig

Beneficial in fibre digestion in pigs, as well has

potential to be used in ethanol from cellulose.

Looking for company to further develop and

commercialize –a business opportunity!

Managing Feed Ingredients….

Real Time Feed Analysis

Variability in nutrient content in traditional and especially by-products is an ongoing challenge.

The use of technology for more precise/timely ingredient management needs to become more commonplace.

An example is real time feed analysis-using on farm NIRA.

Managing Feed Ingredients…..

Field Testing NIRA

NIRA “on farm” technology is being advanced/promoted by a group in Alberta.

ACIDF & Alberta Gov’t. provided funding to cover 50% of the cost of NIR technology (max.$20,000)

Approx. 24 units purchased, a NIR focus group formed, sharing info to make technology more useful and feasible.

Project led by Dr. Mary Lou Swift at University of Alberta

HarvestLab is an NIR moisture sensor and constituent

sensor used both in the field on a Self Propelled Forage

Harvester and in the office as a stand-alone unit.

Moisture Calibrations

HarvestLab measures moisture/dry matter for the following

crops:

• Corn

• Alfalfa

• Grass

• Whole crop

Constituent Sensing Calibrations

Additional constituent sensing calibrations are available to

measure constituents for the following crops:

• Corn (fresh and ensiled). Measure ADF, NDF, Protein,

Starch

Coming soon

• Alfalfa (fresh and ensiled). Measure ADF, NDF, Protein,

Sugar

HarvestLab: Overview

HarvestLab

Timeline for

development Mitigation practice for the dairy industry

Expected

reduction in

methane

Immediate

Feeding oils and oilseeds 5 - 20%

Higher grain diets 5 - 10%

Using legumes rather than grasses 5 - 15%

Using corn silage or small grain silage rather than grass silage or grass hay 5 - 10%

Ionophores 5 - 10%

Herd management to reduce animal numbers 5 - 20%

Best management practices that increase milk production per cow 5 - 20%

5 years

Rumen modifiers (yeast, enzymes, directly fed microbials) 5 - 15%

Plant extracts (tannins, saponins, oils) 5 - 20%

Animal selection for increased feed conversion efficiency 10 - 20%

10 years Vaccines 10 - 20%

Strategies that alter rumen microbial populations 30 - 60%

Methods of reducing methane emissions from

dairy cows and expected timeline

New Feed Ingredients……

Aqua plants - Algae

- Duckweed

Larvae - Good Nutrient Content

- Regulatory Hurdles?

Biomass Crops - Re Purposed

- Tropical Maize

- Switch Grass

- Miscanthus

- Sweet Millet

-Sweet Sorghum

Larvae as Feed Ingredient

The Milinator!

Feedstuff Selection Decisions in the

Future

“While overall feed costs and animal

performance/product quality may be priorities for

feed ingredient selection, the list of other things

that need to be factored in will continue to grow.”

For more information..

Ron Lackey

Feed Ingredients & By-Products Feeding Specialist

Stratford Resource Centre

Ontario Ministry of Agriculture ,Food

and Rural Affairs

Phone: (519)271-7407

Fax: (519)273-5278

e-mail: ron.lackey@ontario.ca

Forage

Peter Johnson

Provincial Cereal Specialist

OMAFRA

peter.johnson@ontario.ca

OPPORTUNITIES!

@WheatPete

Ron

Peter

Elora July 16 2014

27

No S No S

No S + S

+ S + S

3890 kg/ha 2730 kg/ha

Ball, 2014

28

Mitchell 2014

K2SO4 8700 kg/ha KCL 5600 kg/ha

Sulphur! Crop S lb/ac Source

Canola 20 NH4SO4, ATS

Alfalfa 50? K2SO4, Elemental

Wheat 10 NH4SO4, ATS

Clover ? Elemental?

Corn ? NH4SO4, ATS

Soybean 0 None

2015 suggestions, accurate

sulphur soil test not yet available.

CORN

• HUGE silage yields

• Two Crops?

• Mother’s Day

• End May…

• 4 Days <4ºC

• 161 bu/ac (2nd)

Low Test Weight Corn

Morris, 1993

A, B: Corn, Kent County

C: Huron slow dried (no carmelization)

D: Huron carmelized

Diet A B C D

Corn Test Weight

(lbs/bu) 54 52 48 48

Average daily gain

(kg) 0.93 0.97 1.04 1.05

Average daily feed

intake (kg) 2.92 2.77 2.90 3.13

Feed: Gain Ratio 3.22 2.84 2.79 2.99

Low Test Weight Corn

Diet A B C D E F

Corn Origin/

Hybrid

Ontario

Control

(1991)

Indiana

Control

(1992)

Ontario

Funks

4021

Ontario

Pioneer

3787

Ontario

Pioneer

3790

Ontario

Funks

4023

Test Weight

(lbs/bu) 57.4 58.7 50.6 43.7 43.6 45.7

Average daily

gain (kg) 0.55 0.57 0.59 0.60 0.48 0.51

Average daily

feed intake (kg) 1.32 1.22 1.38 1.41 1.24 1.23

Feed: Gain

Ratio 2.4 2.14 2.34 2.35 2.58 2.41

Patterson, Tuitoek and Young, 1993

2014 Cereals 680,000 winter wheat 78 bu/ac (93%)

Spring wheat LATE planted 115%

Fusarium, falling number

Barley, oat 105%

600,000 winter wheat planted 2015

STRAW!!!

Crops 2015??

• Tough fall: winter wheat 600,000 ac

• Corn acres down?

• Soybean acres up?

• Spring Cereals - up west, down east?

• Forages ? (lots of fall harvest)

Which one of these things

is NOT like the others??

Other Forage

Options?

After Corn…

Rye

Triticale

Winter barley

Winter wheat

Johnson, McClure 6 sites 2013/2014

Johnson, McClure 6 sites 2013/2014

Relative Feed Value

Johnson, McClure 6 sites 2013/2014

Crude Protein

Johnson, McClure 6 sites 2013/2014

Beef !! (lbs/ac)

Johnson, McClure 6 sites 2013/2014

Johnson, McClure 6 sites 2013/2014

Potash Removal (lbs/ac)

Johnson, McClure 6 sites 2013/2014

Revenue! (8¢/lb DM)

After Cereals…

Red Clover

Oats

Oats/Peas

Barley

Sorghum/Sudan grass?

Seeding Rate

Nitrogen

Nitrogen (opt seed)

Dairy Impact!

Milk!

Beef Impact!!

% K (Potash)

Cover Crops?

% K

Yield

t/ac

K2O

lb/ac

Oat 2.45 4786 141

Oat/pea 2.78 4818 161

Barley 2.39 4145 119

Johnson 2012

Concerns?

Nitrates

Moisture at harvest

Potash

Forage value