What is my feed co-product worth? In order to maximize revenue from this important product, every producer of feed co-products should constantly ask this question. The answer may seem simple, but the determination is not. The monetary value of any feeds can be determined from 3 basic Nutrition questions: (1) What is the nutrient profile?, (2) What is the target livestock species?, and (2) Are there any negative aspects to the ingredient?
In order to effectively answer these 3 value propositions, you need to employ a consultant who has a good understanding of chemistry (and nutrient analysis), and he must be familiar with how the ingredient is intended to be used. For example, a simple analytical percentage of “crude protein” will suffice for use in feedlot steer rations whereas swine rations will require numbers for specific digestible amino acids. Once your nutrient analysis is known, you need to understand its intended use. For example, the same ingredient will have a different monetary value for use in different ratios – depending on species, production status, and dietary inclusion rate. Lastly, for certain ingredients (e.g., Distillers Grains), there are negative factors that influence maximum dietary inclusion rates. A good consultant will help you set up appropriate analytical programs as well as determine values from the analytical results for your targeted customers. The bottom line is that your end-user customers are continually evaluating the nutrition of your co-products. You should be doing the same.
Large renewable energy and biochemical consulting firms certainly have experts in feedstocks, like agricultural waste, algae, biogas, co2, construction waste, cooking oils, energy crops, fermentation waste, forest products, glycerin, hemp, lignin, municipal solid waste (MSW), palm waste, railroad ties, sludge, solid recovered fuels, and wood waste. Lee Enterprises Consulting is the world’s premier bioeconomy consulting group, with over 150 highly qualified experts serving in all these areas. Take a look at our experts and the services we provide. Most of our experts are also available to advise and serve as expert witnesses in bioeconomy litigation matters. For the larger projects, we specialize in putting together full-service, interdisciplinary teams with one point of contact. Call us at 1+ (501) 833-8511 or email us for more information.