The Cost of Corn Processing for Finishing Cattle1

Three corn processing methods were compared for use in 5,000- and 20,000-head capacity feedlots. Processing methods were dry-rolled (DRC), early harvest and ensiling high-moisture (HMC), and steam-flaked corn (SFC). Processing costs were determined to be $1.58, $4.71, and $9.57/t (metric ton; DM basis) for DRC, HMC, and SFC, respectively, for the 5,000-capacity feedlot. Processing costs were less for the 20,000-capacity feedlot at $0.81, $3.07, and $6.23/t (DM basis) for DRC, HMC, and SFC, respectively. Using these economic calculations in an 85% corn diet (DM basis), an improvement of dietary feed efficiency would need to be 2.4 and 6.1% for feeding HMC or SFC, respectively, compared with feeding DRC in a 5,000-capacity feedlot to be of economical value. For the 20,000-capacity feedlot, an improvement of dietary feed efficiency would need to be 1.7 and 4.2% for feeding HMC or SFC, respectively, compared with feeding DRC. Variables such as corn price, feed efficiency response, energy cost, and feedlot size determine economic returns for corn processing. Feeding SFC appears to generate economic return in both sizes of feedlots compared with feeding HMC or DRC. Calculated economic returns involving HMC were more variable than the economic returns generated from DRC data.