For more: http://www.extension.org/67648 Ration optimization models currently minimize the purchase price of feeds used to meet nutrient requirements. Not included in optimization models is the value of manure nutrients resulting from ration alternatives. This project extends the linear program that is used to minimize ration cost to include the value of manure excreted and stored. Microsoft EXCEL’s Solver GRG Nonlinear Add-in is used to optimize the integrated decision because of the non-linear aspects of manure excretion as a function of feed fed.

1. Ray Massey, John Lory and Marcia Shannon
University of MissouriCommercial Agriculture Program

2.  Manure is a significant source of value to
livestock producers.
 Manure has moved from a waste product to
a co-product in livestock production.
 Opportunities exist to integrate the value of
manure into the least cost diet decision so
that net income is optimized
 Caveat: cost of diets are certain expense;
value of manure is uncertain revenue.

3. Feeder
Pig, $42.91
Feed, $107.18
Variable
Costs, $22.19
Operating
Interest, $3.32
Fixed
Costs, $8.45
ManureValue is not considered!
Profit/Hog Marketed = -$11.64

4.  Typical Situation: Minimize ration cost
subject to nutritional constraints.
 find the least cost combination of feedstuffs to
meet the dietary needs of the animal.
 Alternative: Minimize ration costs less
manure value subject to nutritional
constraints.
 The objective is no longer least cost ration
formulation but jointly considering ration cost and
manure value.

5.  Manure value is increasing as fertilizer prices
have increased.
 DDGS are entering the diet
 Minimize cost of ration
 Source of P and K that have value as fertilizer
when in the manure
 There is no increased cost for optimizing
manure value – same quantity of manure is
produced and must be land applied.

6. $0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Fertilizer($/ton)
Feed($/ton)
Corn SBM DDGS Anhy N DAP K2O

7. Year Diet Cost
($/ton)
Manure Value
($/ton feed)
Manure as
percent of Diet
2002 $138.47 $12.20 9%
2003 $142.15 $14.88 10%
2004 $157.31 $15.61 10%
2005 $133.30 $17.82 13%
2006 $160.52 $21.12 13%
2007 $175.15 $23.91 14%
2008 $202.69 $41.00 20%
2009 $172.77 $38.54 22%
2010 $206.76 $27.45 13%
2011 $267.62 $37.76 14%

8. 0%
5%
10%
15%
20%
25%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
PercentofRationCost
DDGS No DDGS
50-100 lb phase, manure not yet included in optimization routine

9. Year Manure not in OR Manure in OR Savings
2002 $126.27 $126.07 $0.20
2003 $127.28 $126.64 $0.64
2004 $141.70 $141.70 $0.00
2005 $115.48 $115.32 $0.17
2006 $139.40 $130.98 $8.41
2007 $151.24 $151.24 $0.00
2008 $161.69 $161.69 $0.00
2009 $134.23 $133.62 $0.61
2010 $179.31 $179.00 $0.31
2011 $229.86 $229.47 $0.38

10. Year Manure not in OR Manure in OR Added Cost
2002 $138.47 $143.32 $4.84
2003 $142.15 $148.63 $6.47
2004 $157.31 $157.31 $0.00
2005 $133.30 $133.40 $0.10
2006 $160.52 $162.28 $1.76
2007 $175.15 $175.15 $0.00
2008 $202.69 $202.69 $0.00
2009 $172.77 $172.78 $0.00
2010 $206.76 $206.95 $0.19
2011 $267.62 $267.91 $0.29

11. $0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Manure not in OR
Manure in OR

12. Manure? Corn SBM DDGS Monocal
Phosphate
Limestone L-Lysine
Manure not
in OR
62% 25% 9% 0.98% 1.03% 0.43%
Manure in
OR
25% 33% 40% 0.23% 1.46% 0.09%
Note: these results are consistent across 200-250 lb weight range.

13. Manure? Corn SBM DDG
S
Net Cost
($/ton)
Diet
($/ton)
Manure
($/ton diet)
Manure
not in OR
62% 25% 9% $139.40 $160.52 $21.12
Manure
in OR
25% 33% 40% $130.98 $162.28 $31.30
Note: these results are consistent across 200-250 lb weight range.

14. Manure? Corn SBM DDGS Monocal
Phosphate
Limestone Phytase
(units)
Manure not
in OR 43.12% 14.06% 40.00% 0.12% 1.37% 47
Manure in
OR 43.07% 14.07% 40.00% 0.24% 1.32% 0
Note: these results are consistent across 200-250 lb weight range.

15. Manure? Phytase
(units)
Monocal
Phosphate
Net Cost
($/ton)
Diet
($/ton)
Manure
($/ton diet)
Manure
not in OR 47 0.12% $134.23 $172.77 $38.54
Manure in
OR 0 0.24% $133.62 $172.78 $39.15
Note: these results are consistent across 200-250 lb weight range.

16.  Manure needs to be considered a co-product
rather than a waste product.
 Co-products are managed for optimization.
 Including manure in the feed optimization
routine can decrease net diet cost.
 Usually increases actual diet cost a small amount.
 Increase in actual diet is always realized; value of
manure is less certain.
 Don’t include manure in optimization decisions
without a high probability of realizing the manure
value.