This report examines the extent to which least cost feed rations are not 

 energy minimizing rations. It considers the magnitude of the energy savings that 

 are possible in the short run (given current ingredient supply levels) if energy 

 minimizing rations were fed. Further, the report analyzes the consequent 

 economic implications of feeding these rations to livestock and poultry in six 

 farm production regions of the U.S. The report examines the particular 

 ingredient composition of least cost and least energy feed rations for dairy and 

 beef cattle, swine, layers, broilers and turkeys for a specific point in time 

 (February, 1976). Suggestions are also made as to the direction for future 

 research. 



Procedure 



A linear programming model was developed that would allow the comparison 

 of both least cost and least energy feed rations for six species of livestock and 

 poultry. Particular feed rations were minimized with respect to cost and then 

 with respect to energy (measured in terms of the BTU's required to produce, 

 process and transport the feed ingredients^) per hundredweight of ration subject 

 to constraints for crude protein, feed energy, fat, fiber and amino acids (for 

 poultry). The analysis was simplified by excluding constraints for minerals and 

 vitamins; the justification for such an approach lies in the availability of vitamin 

 and mineral supplements that can be added to feed rations to meet specific 

 needs. Tables 1 and 2 present the minimum and maximum constraints used in 

 the linear programming model for the particular rations considered. Quantities 

 of the individual ingredients in the various feed rations were further constrained 

 by (1) the ability of the particular species to consume the ingredients and (2) the 

 historic availability of the ingredients in the consumption regions considered. 

 Corn grain and soybean oil meal were the only feed ingredients that were not 

 constrained in the analysis. The consumption regions examined were the 

 Northeast (encompassing New England, New York, New Jersey, Pennsylvania, 

 Delaware and Maryland), the Lake States (Minnesota, Wisconsin and Michigan), 

 the Corn Belt (Iowa, Missouri, Illinois, Indiana and Ohio), the Pacific States 

 (Washington, Oregon and California), the Southern Plains (Texas and Oklahoma) 

 and the Southeast (Alabama, Georgia, South Carolina and Florida). ^ 



Commercial feed manufacturers in these six regions were contacted and asked 

 to provide a list of feed ingredients that they used in formulating their rations. 

 They also provided prices paid for these ingredients in February of 1976. These 

 prices were used in developing the regional least cost feed rations. USDA 



A British thermal unit (BTU) is the quantity of heat required to raise the 

 temperature of one pound of water one degree Fahrenheit at, or near, its point 

 of maximum density. The energy content of the various power sources is 

 commonly measured in terms of BTU's. For example, one kwh of electricity is 

 rated at 3,413 BTU; gasoline at 125,000 BTU per gallon; diesel fuel at 140,000 

 BTU per gallon; L.P. gas at 95,000 BTU per gallon; and natural gas at 100,000 

 BTU per therm. 



^These regions correspond to the Farm Production Regions identified by the 

 Economic Research Service. 



