Perspective Phillip Smith Ph.D. Tyson Foods, Inc. June 14-16, 2016 - PowerPoint PPT Presentation

Valuing DDGS – A Nutritionist Perspective Phillip Smith Ph.D. Tyson Foods, Inc. June 14-16, 2016 Peru Lima and Trujillo

“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: DDGS • Effects of reduced oil DDGS – reduced calorie • Corn oil from DDGS • Practical concerns and DDGS spec. sheet • Future opportunities

Mid-Missouri Energy Ethanol Plant Malta Bend, MO

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 June 2016

% 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 62 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 O J A J O J A J O J A J O J A J O J

Broiler Average Inclusion of DDGS 9.0 For Only those using: 8.18.28.0 7.87.87.77.87.77.6 8.0 Range 1% – 18% 7.5 7.3 6.9 6.9 7.0 6.66.5 6.5 6.16.16.26.2 6.26.1 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 and Soybean Meal Component Percentage DDGS SBM M.E. Kcals/Kg 2620 2453 Moisture 12.50 12.00 Crude protein 26.50 47.80 Crude fat 7.50 1.00 Crude fiber 7.00 3.00 Phosphorus 0.80 0.64 Potassium 0.90 0.72 Sodium 0.20 0.04 Total lysine 0.80 3.02

Predict Prediction ion equations for TMEn equations for TMEn DD DDGS GS (86 (86% % DM DM b basis asis pe per r 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 Corn Oil Assay Oil Assay Results Results • 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 • Reliance on one plant • Bin 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%

J.V. Caldas*, K. Hilton*, G. Mullenix*, D. Xuemei*, J.A. England*, F. Mussini†, and C.N. Coon* 1 *Center of Excellence for Poultry Science, University of Arkansas, Fayetteville, AR, 72701, USA † Evonik Industries, 1701 Barrett Lakes Blvd., Suite 340, Kennesaw, GA 30144 Tyson, November 25 th , 2015

A Minolta Chroma Meter CR-300 - used to evaluate the color L (li L (ligh ghtn tness) ess) a (r a (red edne ness) ss) b (y b (yello ellowness) wness) 4 3 2 1 Carrollton, Camila, Atchison, MO GA Alexandria, KS IN 7 8 6 5 Menlo, St. Malta Bend, Cloverdale IA Joseph, MO , MO IN

L (Lightness) L (Lightness Cor Corn DD n DDGS GS Supp Supplier lier Mean Std Dev CV, % #1 55.5 0.62 1.12 Alexandria, IN #2 48.6 1.58 3.26 Atchison, KS #3 60.6 0.73 1.20 Camilla, GA #4 60.2 0.32 0.53 Carrollton, MO #5 47.9 0.22 0.46 Cloverdale, IN #6 58.9 1.54 2.62 Malta Bend, MO #7 57.8 0.13 0.22 Menlo, IA #8 55.8 1.19 2.13 St. Joseph, MO

DDGs DDGs su supp ppli lier ers s - U.S. .S. # Su Supp ppli lier er Alexandria, IN 1 Atchison, KS 2 3 Camilla, GA Carrollton, MO 4 Cloverdale, IN 5 Malta Bend, MO 6 7 Menlo, IA 8 St. Joseph, MO DDGS samples - sent to 4 labs for analysis: Tyson University of Arkansas Missouri Evonik

No N Correction!!!! AME, # Supplier SD CV, % Min. Max. Range kcal/lb 1 Alexandria, IN 1067 ab 90 8.8 933 1234 301 2 1101 a 105 10.4 976 1293 Atchison, KS 317 3 1121 a 75 7.1 1028 1260 Camilla, GA 232 4 Carrollton, MO 1051 ab 63 6.3 931 1129 198 5 Cloverdale, IN 1013 ab 108 11.1 813 1151 338 Malta Bend, 6 1077 ab 60 5.9 973 1162 189 MO 7 995 b 65 6.6 886 1080 Menlo, IA 194 8 1103 a 88 7.9 949 1219 St. Joseph, MO 270 Av. AMEn SD CV, % SEM P-value kcal/lb 1070 46 4.5 29.5 0.041

AS IS AMEn, TMEn, # Supplier kcal/lb kcal/lb Dif. Alexandria, IN 1 1002 1100 98 Atchison, KS 2 1018 1312 294 Carrollton, MO 4 974 1076 102 Av. 1073 1163 165 27

Lysine S.Dig Total, SID, A.Dig AA, Supplier AID, % AA, (86%DM) % (86%DM) (86%DM) 0.78 65.5 69.8 0.51 0.54 Alexandria, IN 0.92 69.7 73.0 0.65 0.68 Atchison, KS 0.74 66.6 71.0 0.49 0.53 Camilla, GA 0.90 71.0 74.4 0.64 0.67 Carrollton, MO 0.69 70.5 75.0 0.49 0.52 Cloverdale, IN 0.87 68.8 72.2 0.60 0.63 Malta Bend, MO 0.77 69.6 73.6 0.54 0.57 Menlo, IA 0.75 69.1 73.5 0.52 0.55 St. Joseph, MO Mean 0.80 68.9 72.8 0.56 0.59 SE 2.3 2.21 P-value 0.690 0.726 (AID) Apparent Ileal Digestibility (SID) Standardized ileal Digestibility 28

29.0 % Protein 27.0 # Analyses 48 25.0 Minimum 25.3 23.0 Maximum 28.3 AVERAGE 26.4 21.0 %CV 3 19.0 LCL 25.0 17.0 UCL 27.9 15.0 2/29 3/7 3/14 3/21 3/28 4/4 . 12.0 % Fat 10.0 # Analyses 48 Minimum 7.3 8.0 Maximum 10.1 6.0 AVERAGE 8.4 4.0 %CV 6 LCL 7.3 2.0 UCL 9.4 0.0

Acceptable Mycotoxin Levels in DDGS • Fumonisin - Max. 30 ppm • Vomitoxin - Max. 10 ppm • Aflatoxin - Max. 60 ppb • 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% • Crude protein min. 24% • Crude fat 5-8% • 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 in poultry feeds

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