Feed cost comparison: energy versus protein

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Published: October 28, 2004

When deciding on a feed to buy, all of its properties and nutrients need to be taken into consideration to determine its value. It is impossible to set the full worth of a feed based on just one nutritional aspect.

“Feeds are often valued on the basis of either their energy or protein content, as compared to the cost of common energy sources available, such as corn or barley, and protein sources such as soybean meal or canola meal,” says Susan Markus, a beef specialist with Alberta Ag-Info Centre in Stettler.

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“Most feed cost calculations base the full cost of corn or barley on the value of the energy content, while using the protein content as the full value of soybean meal or canola meal. These types of cost calculations are too simplistic to allow the user to accurately compare feeds.”

The first step is to determine whether energy or protein is the more desirable trait. This will depend on the type of animal being fed.

Generally, maintenance rations for mature cows require low protein levels and moderate energy levels, whereas grower or feeder calves need higher levels of protein and energy.

Therefore, the type of feed required by each can be different.

“If you need a high energy feed or need to supplement energy in the ration, the cost of that nutrient can be compared to other like feeds so that a price comparison can be made amongst your options,” Markus said.

“In an extremely simplified way, if you are using total digestible nutrients (TDN) as the energy estimate, you can first determine the price per kilogram of product and then divide by the percentage of TDN present. This will result in the price per kg of TDN. If you are concerned with feeding mature cows, your energy sources may be forages, whereas in a calf feeding program energy sources should be grains.”

For example:

  • Alfalfa grass hay with 60 percent TDN priced at $70 a tonne has a value of 12 cents per kg (70/1,000 = 0.070/60 = 012) of TDN.
  • Barley greenfeed with 56 percent TDN priced at $55 a tonne has a value of 10 cents per kg (65/1,000 = 0.065/56 = 012) per kg of TDN.

In this case, the barley greenfeed is a more economical buy than the alfalfa mixed hay.

“Based on their energy source, barley and grain screening pellets are a good pair to compare for feeder calves,” Markus said.

“However, be aware that pellets may have added minerals or vitamins that will have to be taken into account before determining the final value of the feed.”

  • Barley priced at $115 a tonne with 83 percent TDN has a value of (115/1,000 = 0. 115/83 = 0. 14), meaning the barley energy costs 14 cents per kg of TDN. Processing costs also need to be factored in the final value.
  • Grain screening pellets priced at $95 a tonne with 72 percent TDN works out to 13 cents per kg TDN, making the pellets the more economical energy source.

“Once a price comparison is made, the ration needs to be balanced to ensure the feed ingredients will work in the amounts you are willing to provide. As an example, having to provide twice as many grain pellets compared to barley grain to balance the ration makes the pellets uneconomical.”

Protein cost comparisons can be done in the same way. For calves, an example may involve comparing a 32 percent protein beef supplement worth $325 a tonne to a 34 percent protein canola meal priced at $225 a tonne.

“With this comparison, remember the beef supplement likely contains added minerals and vitamins that will have to be taken into account in any purchase decision,” Markus said.

“The 32 percent beef supplement would have a protein value of (325/1,000 = 0.325/32 =) $1.02 a kg protein, while the canola meal would have a value of (225/1,000 = 0.225/34 =) 66 cents a kg protein.”

She said this system should be followed as long as the feed being compared meets the needs of the livestock.

While some products may provide more protein and energy at less cost, Markus said it is false economy and bad management to choose the cheapest source of protein and energy unless care is taken to adequately supplement both minerals and vitamins in the total diet.

“Be sure to factor in the value of the minerals and vitamins that may be added in some prepared feeds. Some products will contain added macro and trace minerals and vitamins, and these need to be taken into account before deciding to buy. The price of any supplemental mineral and vitamins must be added to the protein or energy source cost to arrive at a true price for the feed.

“Once cost comparisons between products are made, the rations must be balanced to meet the needs of the animals. This process of valuing the energy and protein components of the feeds will help you to eliminate overly expensive feeds and narrow your choices to the most economical ones for your specific situation.”

A new beef feed value calculator is being developed and will soon be available on Alberta Agriculture’s internet site. This calculator is being designed to value all the nutrients in the feed so more accurate comparisons can be made.

For more information on this calculator, or to help compare livestock feed, contact a beef or forage specialist at 866-882-7677.

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