Cost of Corn Processing for Finishing Cattle1, The

Three corn processing methods were compared for use in 5,000- and 20,000-head capacity feedlots. Processing methods were dry-rolled (DRC), early harvest and ensiling high-moisture (HMC), and steam-flaked corn (SFC). Processing costs were determined to be $1.58, $4.71, and $9.57/t (metric ton; DM basis) for DRC, HMC, and SFC, respectively, for the 5,000-capacity feedlot. Processing costs were less for the 20,000-capacity feedlot at $0.81, $3.07, and $6.23/t (DM basis) for DRC, HMC, and SFC, respectively. Using these economic calculations in an 85% corn diet (DM basis), an improvement of dietary feed efficiency would need to be 2.4 and 6.1% for feeding HMC or SFC, respectively, compared with feeding DRC in a 5,000-capacity feedlot to be of economical value. For the 20,000-capacity feedlot, an improvement of dietary feed efficiency would need to be 1.7 and 4.2% for feeding HMC or SFC, respectively, compared with feeding DRC. Variables such as corn price, feed efficiency response, energy cost, and feedlot size determine economic returns for corn processing. Feeding SFC appears to generate economic return in both sizes of feedlots compared with feeding HMC or DRC. Calculated economic returns involving HMC were more variable than the economic returns generated from DRC data.Corn is a major constituent of diets fed to finishing beef cattle in the United States. The major component of yellow dent corn is starch, which is approximately 72% of the DM (Huntington, 1997). Starch utilization is fundamental to improving efficiency of production of feedlot cattle (Theurer, 1986). Com is processed to increase starch availability to improve cattle performance. GaIyean (1996) surveyed consulting nutritionists and evaluated the 3 major corn processing methods, which were dry-rolling, early harvest and ensiling, and steam-flaking. Several studies (Huck et al., 1998; Cooper et al., 2002; Scott et al., 2003; Macken et al., 2006) and a review (Owens et al., 1997) determined finishing cattle responses to these different processing methods. However, limited work has been reported in the literature to define the cost associated with each processing method. Knowing the costs of processing corn is a critical part in determining economic advantages that can be gained by the different processing methods. A certain processing method may in fact cost more than the improvement in cattle performance justifies. Economic evaluation of corn processing is difficult to define as it can be specific to individual producers. Therefore, objectives of this evaluation were 1) to outline cost of processing corn, 2) to provide general numbers associated with processing of corn, and 3) to discuss potential economic gain from corn processing based on cattle performance.