Di Diets ets Phillip Smith Ph.D. P.A.S. 17 th Distillers Grains - PowerPoint PPT Presentation

Th The Current e Current Usag Usage of D e of DDG DGS S an and d Corn O Corn Oil il in Pou in Poultr ltry y Di Diets ets Phillip Smith Ph.D. P.A.S. 17 th Distillers Grains Symposium Bloomington, MN May 15 & 16, 2013

“The greatest dilemma that the (animal) agriculture industry has faced in the last 50 years is ethanol and corn prices” Rod Smith, Feedstuffs, December 2006

The outline of my presentation today: • Basics of ethanol production and co-products • Production and Usage estimates of DDGS • List the locations currently using DDGS • Typical analysis • Effects of reduced oil DDGS – reduced calorie • Corn oil from DDGS • Practical concerns and DDGS spec. sheet • Future opportunities

Dry Milling Fuel Ethanol Process

Mid-Missouri Energy Ethanol Plant Malta Bend, MO

U.S.DDGS Outlook 35.0 30.0 25.0 Million Tons 20.0 15.0 10.0 5.0 0.0 2000 2001 2003 2004 2005 2006 2007 2008 2010 Year

Potential domestic use of DDGS Potential DDGS Demand 30 25 20 15 10 5 0 Catfish Layers Broilers Swine Ruminant Total Million Tons

Tyson Mills Currently Using Distillers • South Fulton, TN April 2004 • Robards, KY April 2004 • Ramsey, IN February 2005 • Pine Bluff, AR (Blending) February 2005 • Cullman, AL (Blending) February 2005 • Sedalia, MO March 2005 • Bergman, AR March 2005 • Gonzales, TX April 2005 • Estill Springs, TN July 2005 • Fairmount, GA July 2005 • Aurora, MO July 2005 • Clarksville, AR August 2005 • Pottsville, AR August 2005 • Nacogdoches, TX July 2005 • Springdale, AR April 2006 • Westville, OK June 2006 • New Market, VA July 2006 • Neshoba County, MS July 2006 • Hope, AR November 2006 • Nashville, AR November 2006 • Grannis, AR November 2006 • Currently in all 30Tyson Mills May 2013

% Broiler Complexes Using DDGS 100 888688909089899090 90 8584848382848685858585 8484 79 80 80 7877 80 78767472716969696867 74 7072 71 68 70 68 62 6462 64 6262 % 60 58 53 464749 50 43 40 30 20 10 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2 3 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 - - - - - - - - - - - - - - - - - - - J J J J J J J J J J O A O A O A O A O

Broiler Average Inclusion of DDGS 9.0 For Only those using: 8.18.28.0 8.0 7.87.87.77.87.77.6 Range 1% – 18% 7.5 7.3 6.9 6.9 7.0 6.66.5 6.5 % 6.26.1 6.16.16.26.2 5.75.85.96.16.15.96.06.16.2 5.96.1 6.1 5.95.9 6.0 5.55.55.4 5.4 5.15.25.2 5.0 4.9 5.0 4.7 4.64.64.6 4.44.5 4.3 4.24.2 4.2 4.0 3.0 O-08 A-09 O-09 A-10 O-10 A-11 O-11 A-12 O-12 J-08 J-09 J-09 J-10 J-10 J-11 J-11 J-12 J-12 J-13

Average Nutrient Spec for DDGS Calories lb/kg 1224/2693 Protein 29.69 Lysine 0.87 TSAA 1.05 Trp 0.23 Arg 1.34 Thr 1.06 A.Phos 0.44 Calcium 0.08 Sodium 0.17

Nutritional composition of DDGS Tyson Samples 2013 Component Min. Max. Average % Moisture 12.28 18.44 14.75 Crude protein 26.94 31.46 29.45 Crude fat 4.49 11.47 7.58 Crude fiber 5.68 7.41 6.49 Ash 3.74 7.97 5.46 Data from 837 DDGS samples from 50 plants

Corn Corn Oil Extraction? Oil Extraction? Dr. Bob Loar’s comments • Been happening for some time (since 2005) • Currently more than half the industry deoiling to some degree • Extraction rate hasn’t been that extreme • Rapid expansion due to fat/oil price and technology

De De-Oil Oil DDGS DDGS Dr. Bob Loar’s comments • Practices typically involve a centrifugation step performed on the condensed distillers solubles (syrup) • Results in a DDGS product with a lower crude fat value and subsequent calorie value • Extraction process can be modified to create different fat levels of de-oiled DDGS (7% or 5% oil content) • Oil is an excellent source of energy in livestock and poultry diets • Increases variability of fat content in DDGS by plant and within individual plants

Calorie V alorie Value alue of of Red educ uced ed O Oil il DDGS? GS? • Research conducted at Iowa State Univ. showed a one percent reduction in oil in DDGS lowered AMEn by 45.6 Kcals per pound (IPSF Abst. M23 2013) • Research conducted at Univ. of Georgia showed lowering the oil content from 10% to 5% reduced the TMEn value 16.5% (38.6 Kcals/lb per 1% drop in oil content) (IPSF Abst. T112 2013)

How How do does es the de the de-oili oiling ng effect effect DDGS GS value? value? • If the price of fat is $0.40 per pound and we remove 1% oil from a ton of DDGS that we be 20 pounds of fat times $0.40 per pound or $8.00 per ton reduction in value • While this is not completely correct it is one way of looking at the effect of de-oiling.

Pred rediction iction eq equa uations tions for for TMEn MEn DDGS GS (86% D (86% DM bas basis is per per Kg) Kg) TMEn= 2732.7 + 36.4 (fat) – 73.6 (fiber) + 14.5 (protein) – 26.2 (ash) Batal and Dale 2006 J. Appl. Poultry Res 15:89-93

Corn oil from DDGS C

Corn orn O Oil il A Ass ssay ay Res esults ults • Linoleic acid 53.30% • Monounsaturated fat 27.76% • Polyunsaturated fat 56.13% • Saturated Fat 15.24% • Free Fatty Acids 4.69% • Insolubles <0.01% • Moisture 0.72% • OSI 8.20 hr • AME calculated 3900-4000 Kcals/lb

Practical issues with Distillers • Logistics • Truck vs Rail • Reliance on one plant • Bin/rail track allocation at mills • Consistency • Moisture levels • Mycotoxins • Pellet quality

Potential uses of DDGS in broiler diets continued: • The usage of distillers will depend on whether it will cost into the ration when the formulas are optimized – Competition from other ingredients – Consistency – Nutrient value

DDGS Specification Sheet • Consistent high quality – Free flowing – Absence of syrup balls – Golden color • Minolta Color Lightness L>50 • Minolta Color Yellowness b>40.0 • Novus IDEA value for Lysine dig. >65%

Acceptable Mycotoxin Levels in DDGS • Fumonisin - Max. 30 ppm • Vomitoxin - Max. 10 ppm • Aflatoxin - Only utilize corn with a maximum of 20 ppb of aflatoxin in the ethanol processing plant. • Zearalenone – no standard set

DDGS Specification Sheet • Moisture max. 15.00% • Crude protein min. 24% • Crude fat 4.5-12% • Crude fiber max. 8.50 • Sodium 0.15-.30% • Phosphorus (total) 0.70-0.80%

Summary • DDGS with low, medium, and high oil effecting calorie value and subsequent usage • Consistency between suppliers/plants is affecting product image • Corn oil from DDGS process is a valuable energy source • Economics will determine the future usage of DDGS and Corn Oil in poultry feeds

Thank You for your attention • Phillip Smith Tyson Foods, Inc (479)290-4795 phillip.smith@tyson.com