Relative Value of DDGS

Relative Value of Distillers Dried Grains Plus Solubles (DDGS) was calculated using parametric cost analysis that was programmed with current market values for commonly used feed ingredients. For each broiler diet, a parametric series of calculations were performed to determine the acceptance price and usage level of DDGS. The computer analysis determines the acceptance price and usage level at that acceptance price and then proceeds to determine additional usage levels when the price of DDGS is increased. This procedure is repeated until the price is reached that would result in no additional DDGS being included in the feed formulation. In this study, to include a meaningful (exceeding approximately 5 percent) level of DDGS in broiler diets, a cost of $150-155 per ton would be necessary when market prices for corn ($105.11/ton), soybean meal ($178.35/ton) and animal fat ($265.12/ton), the major competitors for DDGS. If DDGS could be purchased at prices below $150 per ton, usage levels would increase to about 20 percent of the ration in this example. The parametric technique has merit in providing some indication of the relative value of an ingredient in a feed formulation when prices for key ingredients are known. The one caution with DDGS is the extreme variation in nutrient composition that can occur in the market place. The author recommends that nutritionists evaluate each product based on its composition and cost analysis compared to common ingredients before making commitments to purchase and use DDGS in their broiler diets.

Waldroup, Park. 2004. Parametric cost analyzed for DDGS in broiler diets. Feedstuffs, June 7. p15, 35.