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Economics of processing

Probably more difficult than the decision about of what type processing to use, is whether to process at all. The economics of processing are really a function of the cost to process the grain versus the benefit that you can receive by processing the grain through increased efficiency of animal growth or feed usage. Another way to look at that is that is production improved or is feed use diminished enough to pay for this process. It is important to keep in mind that processing takes energy, could be in the form of heat for heat processing, electricity to run grinders and rollers. It also takes money to buy this equipment, so that equipment investment must be figured into the price of processing. The equipment must be maintained. There is labor to run the equipment during the processing time. There is also storage of both the raw product prior to processing and the processed product and the need to control waste during the processing program. As you grind grain, for example, a significant amount of dust is formed, can blow away, and over time this can account for a significant amount of the grain that you buy. So looking at the change in production versus the cost of processing grain is the best way to determine your economics of processing and the best method to use with your livestock in your situation.

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