Comparing Cost versus Benefits of Corn Processing for Feedlot Cattle

Corn processing techniques differ in their effects on feedlot performance and carcass characteristics of finishing cattle. Capacity of a feedlot (critical mass) can dictate which processing method is most feasible economically due primarily to fixed costs for equipment. The local and regional corn pricing basis and availability of other ration ingredients also can influence which corn processing equipment/methodology is preferred at different feedlots. Energy cost also will have a major impact on choice of grain processing techniques. The preferred corn processing technique also may differ when ethanol by-products are included in the finishing diets of feedlot cattle. Processing costs were compared with cattle performance benefits based on published data summaries. Processing costs adjusted to a bushel of #2 corn (85% DM) were $0.03, $0.05, -$0.11, and $0.20 per bushel for dry-rolled corn (DRC), finely-ground corn (FGC), high-moisture corn (HMC), and steam flaked corn (SFC), respectively. Steam flaked corn was the only processing method economically feasible to apply to finishing feedlot cattle diets when using traditional feedlot diets, applying modern processing and energy costs. However, when processing techniques were applied to feedlot diets including corn ethanol by-products, HMC, a combination HMC/DRC, or DRC yielded superior economic returns when compared to SFC. With the rapid expansion of the ethanol industry, an examination of grain processing techniques and costs may be justified, especially with increasing energy costs/inputs.