Economic evaluation of potato waste as a feed ingredient for beef cattle finishing rations Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/1z40kx261

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  • Potato waste is processing residue generated as a byproduct from the production of frozen and dehydrated potatoes. Although feedlots have fed potato waste to cattle for years, very little information is available to provide guidance to potential buyers and sellers for determining prices. The value of potato waste in beef finishing rations can be estimated to provide an indication of the maximum prices which feedlots should offer, and which processors can expect to receive for the waste. The objectives of this thesis are: (1) to estimate the value of potato waste to the feedlot when fed in beef cattle finishing rations, (2) to compare the methods for evaluating the feedlot value of potato waste for reliability purposes, and (3) to estimate the value of potato waste at the processing plant and at the feedlot when there is competition among spatially separated feedlots of different size and location. Objective (1) was met by determining the shadow price values of potato waste from the linear programming models. Model 1 evaluated potato waste in least cost ration formulations based on various nutrient specifications. Models 2 and 3 evaluated potato waste in optimal feeding programs using cost minimization and profit maximization per animal as the model objectives (Model 2), and using profit maximization per year as the model objective with full feedlot capacity (Model 3). The results of the models were compared to satisfy objective (2), whereupon it was verified that Model 1 is as reliable a method of evaluation as Model 2, since both models produce similar results. For most rations, potato waste values differed by 7 percent or less, but differed by 25 percent for rations exceeding 50 percent potato waste content. Objective (3) was met by modifying Model 2 to include potato waste shipment activities between a potato processing plant and three feedlots. This allowed potato waste to be evaluated on the basis of its value to feedlots and processors. A processor price for potato waste was determined as the size of processors and feedlots varied, and as the quantity of potato waste changed. The evaluative and allocative methodology was examined, and implications for allowing processors to estimate approximate potato waste prices were discussed.
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