Cottonseed Marketing

Whole Cottonseed: A Super Feed for Dairy Cows

Introduction	Value and Pricing Cottonseed	Central California	Western Washington
Western New York	Southeastern Wisconsin	Central Florida	Merchandising and Distribution
Cottonseed Feeding Limitations	Cottonseed Storage and Handling	Trading Rules for Feed Grade Cottonseed	Terms and Definitions
Tables Index	For further information...	Additional Sources of WCS Information

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Introduction

When seed cotton is ginned, more seed than fiber is produced. For each 480-pound bale of lint, an average of about 780 pounds of cottonseed are produced. Depending on the size of the cotton crop, approximately 5.5 millions tons of cottonseed are produced annually. Texas is the state of largest cotton production followed by California, Mississippi, Louisiana and Arkansas.

Whole cottonseed (WCS) is indeed a very special feedstuff. It has become recognized by dairymen as the premier feedstuff for lactating cows of high genetic merit. WCS has energy, protein, fiber and phosphorus concentrations greater than many other available ingredients. This characteristic makes it ideal for mixing with other, less nutrient-dense, feeds to produce a balanced ration. A comparison of the nutrient profile of WCS with other commonly available protein supplements shows it to be the only one with both high energy and high fiber. This feature is especially attractive to the high producing cow in negative energy balance who is usually starved for both energy and fiber. Its fat content makes it especially valuable for cows under heat stress.

Inclusion of WCS in the diet of the early-lactation cow usually increases the energy eaten while often increasing milk yields. It frequently has a positive effect on milk fat test though a negative effect on milk protein. On balance, the effect on milk price is usually positive. Most computer programs underestimate the true value of WCS because they fail to account for its positive influence on milk production.

WCS does not need to be processed before feeding and it should be mixed with other components of the diet, ideally in a total mixed ration (TMR). The feeding range of 5 to 8 lb per cow per day is usually safe. Careful calculations of free gossypol intakes based on seed analyses should be done if greater amounts are fed, especially for extended periods.

Value and Pricing

The dollar value of any feed ingredient should reflect the nutrients it contains relative to the cost of nutrients in other available feedstuffs. The most comprehensive way to do this is with a computer that solves simultaneous equations given an array of available feedstuffs and their costs. However, these programs have limitations, especially in the case of a special ingredients, such as WCS, which supplies energy in the form of fat, plus protein and a digestible fiber. In addition, the use of WCS will often increase milk fat test, although a small depression in milk protein often occurs. However, the net effect on milk price has usually been positive. Therefore, the value of WCS is often $20 to $40 more per ton than a least-cost computer formulation that ignores milk revenues may show. A simple approximation can be obtained by using prices of: 1) corn to represent the value of energy; 2) soybean meal (44%) to represent the value of protein; and 3) a good coastal bermuda grass hay (CBH) to represent the value of fiber. To arrive at an approximation of the value for WCS, use this formula: price of corn times .90, plus the price of soybean meal (44%) times .25, plus the price of CBH times .50. As a specific example: ($100/ton x .90) + ($180/ton x .25) + ($70/ton x .50) = $170. This value incorporates the contribution of fiber as well as energy and protein, which is crucial to the cow in the first trimester of lactation. During the last half of lactation, fiber is usually not a constraint, and the value of fiber in the formula should be discounted by at least half.

The Value of Whole Cottonseed in Key U.S. Dairy States,
Plus Selected Southern Locations

January 1993*

Table 1.

SAMPLE RATIONS
CENTRAL CALIFORNIA

Whole cottonseed is well positioned in the California market and is priced favorably to other feedstuffs. Of all the feeds offered in the sample rations, whole cottonseed is one of only two feeds that remain in at maximum usage across all three production strings.

Even when cottonseed is used at maximum levels, the price can increase significantly before it is reduced in the ration, given the April 13, 1993 cost of competing ingredients. For example, cottonseed prices would have to rise $3 per ton while prices for other feed remained constant before the amount of cottonseed is reduced in the high-production ration. For low-producing cows, the price for cottonseed would need to jump $14 per ton to reduce the level fed. The amount of all other feeds, except citrus pulp, declines as milk production falls.

California Sample Rations

Table 2.
Milk Price: $11.80
Feed prices: April 13, 1993, Turlock, California

WESTERN WASHINGTON

Wedged between the Pacific Ocean and the Cascade Mountains, western Washington producers generally pay more for feed while receiving lower milk prices. Yet they manage to keep their production levels higher than most other parts of the country. They also take advantage of Canadian feeds and ship in cottonseed from as far away as Arkansas.
Whole cottonseed used in conjunction with home-grown feeds or purchased feeds helps Pacific Northwesterners keep their rolling herd averages well above the national average. Cottonseed, because of its high nutrient density, becomes a more economical feed to ship in than some of the other dairy staples.

Washington Sample Rations

Table 3.
Milk Price: $12.30
Feed prices: April 13, 1993, Lynden, Wash.

SAMPLE RATIONS
WESTERN NEW YORK

Cottonseed proves both cost-effective and nutritionally effective for high-production strings in New York. Balancing for 100 lb of daily milk at maximum dry matter intake levels, gives all energy sources an even chance. Still, cottonseed is the best choice for high-energy rations in New York. Supporting high levels of production can be accomplished using either cottonseed or another high-energy source. But the cottonseed ration proves more economical, with feed costs at only 28.8 percent of milk income, compared with 29.6 percent for a sample ration using a rumen inert fat.

New York Sample Ration

Table 4.
Milk Price: $12.50
Feed prices: April 13, 1993, North Java, N.Y.

SOUTHEASTERN WISCONSIN

In the heart of dairyland, where most producers grow a large share of their feed, imported feeds still play a critical role. Whole cottonseed, because of its unique nutrient profile, is cost competitive and nutritionally effective for high-producing cows. At lower-production levels, cottonseed has a more difficult time competing with on-farm feeds.

In the Wisconsin sample rations, the cost of the cottonseed ration for high-producing cows drops to only 25.2 percent of milk income, compared with 27.1 percent for the ration supporting only 75 lbs. of daily milk.

Wisconsin Sample Rations

Table 5.
Milk Price: $12.50
Feed prices: April 13, 1993, Johnson Creek, Wis.

SAMPLE RATIONS
CENTRAL FLORIDA

Dairying in Florida, a forage deficit state, can be a real challenge. High feed costs, especially for premium-quality alfalfa, and hot humid summers, cut into profits. Despite those hardships, Floridians have two advantages: lower whole cottonseed prices and higher milk prices.

Even for lower-producing strings in the heat of summer when feed intakes are low, cottonseed in Florida is a good low-cost ingredient because it provides an array of nutrients, such as fiber, energy, and protein. Cottonseed meal is also priced right in the South, however, special attention should be paid to gossypol levels when cottonseed is fed in conjunction with cottonseed meal or cottonseed hulls (see Cottonseed Feeding Limitations).

Florida Sample Ration

Table 6.
Milk Price: $15.50
Feed prices: April 13, 1993, Okeechobee, Fla.

Sample Rations developed by

• Dairy Profit Weekly
  DPW Publishing Co.
  Trilogic Systems, St. Paul, Minnesota
  

WHOLE COTTONSEED: ANALYTICAL VALUES

Table 7.

MERCHANDISING AND DISTRIBUTION

Since the movement of large quantities of WCS into the feed trade is a relatively recent phenomenon, its distribution channel is in a state of evolution. During the early 1980's, large cotton production in the West resulted in large quantities of WCS moving into the feed trade. This created competition for the cottonseed oil mills' raw material. Less than half the number of oil mills operating just a decade ago are in existence today. The older, inefficient mills have closed and others have become WCS merchandisers. The remaining mills are large, highly efficient and vertically integrated operations that focus on value-added products and customer service.

In very general terms, about 60% of the WCS produced each year is processed into the products, oil, meal, hulls and linters. Of the approximately 40% of the crop sold for feed, about half is handled by cottonseed oil mills or former oil mills. The other half enters the feed trade directly from cotton gins. The distribution channel includes commodity dealers, brokers, feed dealers, truckers and others. In the West, where most of the WCS supply enters the feed trade, a couple of former crushing cooperatives have become efficient and reliable merchandisers of WCS. It stands to reason that merchandisers of WCS who have a crushing background would be proficient at storing, handling, and maintaining the quality of WCS.

During the past few years there have been some wild swings in the WCS market. This was largely the result of inadequate storage capacity, particularly in the South East. Several years ago a similar situation was observed in the West. A large crop produced excess seed and low prices at harvest. The following year, storage capacity was increased. Excess storage capacity has, over time, tended to stabilize the market. Likewise, as more storage capacity is put in place in other parts of the country, the result will be a more stable market beltwide.

The forces of supply and demand determine the price of WCS -- willing buyers and sellers establish the market price for WCS relative to available supplies. Occasionally speculators take large positions that may tend to influence the market, but this is also true of all other commodities since position taking is indeed a major component of supply and demand.
Purchasers of feed grade cottonseed are well advised to deal only with reputable suppliers. Those who are established in the business of storing and handling cottonseed are more likely to provide high quality seed that is traded under established Trading Rules. WCS should not be stockpiled for extended periods unless one is thoroughly familiar with proper storage conditions ( See Cottonseed Storage and Handling, Page 9). If one wishes to have a guaranteed supply of WCS for several months or a year, then a more logical approach would be to forward contact for future delivery. This places the responsibility of proper storage on the supplier.

COTTONSEED FEEDING LIMITATIONS

When WCS is a particularly good buy, a reasonable question is: how much can one feed?

Most dairymen in the South and West feed from 5 to 8 lb per cow per day. As a percentage of the total diet dry matter in a TMR, this is about 15%. But this doesn't really tell one how much could be fed for extended periods, say more than 6 months. The concern about the safety of high levels stems from the presence of a compound called gossypol. Research conducted at Auburn University suggests that 24 grams of free gossypol is the approximate upper limit for the lactating cow. This would allow the feeding of up to 10 lb per cow per day if the free gossypol is 0.50% or less in the whole seed. When feeding more than 8 lb per cow per day, one should have an analysis for gossypol run in order to determine the exact amount of free gossypol being fed. The analyses are usually expressed as a percentage of the kernel (meal plus oil); to convert the percentage of gossypol in the kernel to the percentage present in the whole seed, multiply by .68. For example; if a kernel contains 0.92% gossypol, the equivalent amount in the whole seed would be 0.63%. If cottonseed meal and/or cottonseed hulls are also being fed, their contribution to the total free gossypol intake needs to be included also, even though they have much less free gossypol than WCS.

Problems have also been encountered with aflatoxin production by molds in cottonseed. Molds may develop either in the field or in storage. Purchasing agreements should state clearly that the WCS should have less than some specific amount of aflatoxin (20 ppb is the legal limit for feed used in dairy rations). Then the seed should be stored on a well-drained pad protected from rain.

COTTONSEED STORAGE AND HANDLING

Characteristics of Cottonseed
The bulk density of gin-run cottonseed averages about 25 lb/ft3. Cottonseed is hygroscopic and therefore absorbs moisture from, or gives up moisture to, the surrounding air. Storage temperatures below 60°F and 10% moisture content wet basis (mc w.b.) provide best storage conditions. Over many months of storage, cottonseed will retain its greatest value under conditions where it is covered and air is drawn through the pile to reduce and control the temperature and moisture level.
Whole, fuzzy cottonseed has some unique characteristics which make it difficult to handle with common grain handling facilities. Unlike grain, cottonseed has a variable angle of repose. The angle of repose when an unrestricted pile of cottonseed is formed is about 45°. However, after the seeds have settled, they will bridge -- an indication that the angle of repose is greater than 90°. This can create a hazardous situation. Extreme caution must be exercised when handling large volumes of cottonseed to ensure that hazardous situations do not jeopardize worker safety.

Basic Properties of Cottonseed and Cottonseed Products

Table 8.

TRADING RULES FOR FEED GRADE COTTONSEED

(1) National Cottonseed Products Association (NCPA)

The NCPA is a national trade organization that represents cottonseed crushers, WCS merchandisers, dealers, brokers, chemists, and other allied interests.

Chapter XIII Article 2. Grade and Quality
Rule F-4: Prime Feed Grade Cottonseed.

Prime Feed Grade Cottonseed shall meet the following criteria: Foreign substances shall not exceed 2 percent. Moisture shall not exceed 13 percent. Free fatty acids in the oil shall not exceed 3 percent. Crude protein and crude fat (dry matter basis) will be at least 34 percent when the separate totals for each are combined.
Cottonseed of the Pima variety or other varieties of long staple cotton containing 3 percent or less residual lint on seed after ginning, or admixtures containing such seed must be identified as such at the time of sale.

Rule F-5: Delinted Prime Feed Grade Cottonseed.

Delinted prime feed grade cottonseed shall be mechanically delinted. Lint on seed shall not exceed 5 percent. Foreign substances shall not exceed 1 percent. Moisture shall not exceed 13 percent. Free fatty acids in oil shall not exceed 3 percent. Crude protein and crude fat (dry matter basis) will be at least 37-1/2 percent when the separate totals for each are combined.

Rule F-6: Feed Grade Cottonseed, Off Quality.

Feed Grade Cottonseed, off quality, are those that do not meet the specifications of Rule F-4.

(2) American Cottonseed Association (ACA)

The ACA is a national trade organization that primarily represents WCS interests such as suppliers, brokers and dealers.

SECTION 11 -- COTTONSEED STANDARDS
Rule 52 -- Grade

A. COTTONSEED
1. Premium Cottonseed shall be sound, not musty, and free of offensive odors. Foreign matter shall not exceed one (1) percent. Moisture shall not exceed eleven (11%) percent. Free fatty acids in the oil shall not exceed three (3%) percent. Crude protein and crude fat will be at least thirty-eight (38%) on a dry matter basis when the separate totals for each are combined.
2. Prime Feed Grade Cottonseed shall be sound, not musty, and free from offensive odor. Foreign substances shall not exceed two (2%) percent. Moisture shall not exceed thirteen (13%) percent. Free fatty acids in the oil shall not exceed three (3%) percent. Crude protein and crude fat (dry matter basis) will be at least thirty-four (34%) percent when the separate totals for each are combined.
3. Gin Run Cottonseed shall be sound, not musty and free of offensive odors.

B. DELINTED COTTONSEED
1. Premium Delinted Cottonseed shall be sound, not musty, and free from offensive odors. Foreign matter shall not exceed one (1%) percent. Moisture shall not exceed eleven (11%) percent. Crude protein and crude fat shall be at least thirty-nine (39%) percent on a dry matter basis when the separate totals of each are combined. Retained lint shall not exceed five (5%) percent.
2. Prime Delinted Feed Grade Cottonseed shall be sound, not musty, and free from offensive odor. Lint on seed shall not exceed five (5%) percent. Foreign matter shall not exceed three (3%) percent. Crude protein and crude fat (dry matter basis) will be at least thirty-seven and one-half (37-1/2%) percent when the separate totals for each are combined.
3. Gin Run Delinted Cottonseed shall be sound, not musty, and free of offensive odors.

C. PIMA COTTONSEED
1. Premium Pima Cottonseed shall be sound, not musty, and free of offensive odors. Foreign matter shall not exceed one (1%) percent. Moisture shall not exceed eleven (11%) percent. Free fatty acids in the oil shall not exceed three (3%) percent. Crude protein and crude fat will be at least thirty-nine (39%) percent on a (dry matter basis) when the separate totals for each are combined.
2. Prime Feed Grade Pima Cottonseed shall be sound, not musty, and free from offensive odors. Foreign matter shall not exceed four (4%) percent. Moisture shall not exceed thirteen (13%) percent. Free fatty acids in the oil shall not exceed three (3%) percent. Crude protein and crude fat will be at least thirty-seven and one-half (37-1/2%) percent on a (dry matter basis) when the separate totals for each are combined.
3. Gin Run Pima Cottonseed shall be sound, not musty, and free of offensive odors.

D. OFF QUALITY COTTONSEED
1. Off Quality Cottonseed shall be such cottonseed not meeting the standards as set froth in A, B and C of Rule 52.

NOTE: When cottonseed is traded under any of the above rules, the sales contract should indicate the organization and the specific grade designation.

Terms and Definitions

Whole Cottonseed (WCS) -- This term refers to fuzzy seed from upland varieties of cotton.
Pima Cottonseed -- This is the seed from pima varieties of cotton, also known as extra long staple (ELS) cotton. It represents a small percentage (about 2%) of US cotton. Pima seed is genetically devoid of linters, the fuzz that covers the seed of upland varieties. Some nutritionists recommend that Pima seed be cracked prior to feeding.
Delinted Cottonseed -- There are two processes used for delinting cottonseed, mechanical and acid. Mechanically delinted is the most common form of delinted seed available in the feed trade. Mechanically delinted seed retains about 1-2% residual linters which usually appear on the ends of the seeds. Acid delinting is a process that completely removes all linters. This process is used for the production of planting seed. At certain times during the year, quantities of culled, or leftover planting seed, become available to the feed trade. Beware of such planting seed unless one can demonstrate that it does not contain chemical seed treatments.

Tables Index

This is a list of all the tables in this report. Click on the text to jump to that table.

1. Value of Whole Cottonseed in key U.S. Dairy States.
2. California Sample Rations
3. Washington Sample Rations
4. New York Sample Ration
5. Wisconsin Sample Rations
6. Florida Sample Ration
7. Whole Cottonseed Analytical Values
8. Basic Properties of Cottonseed and Cottonseed Products

For further information please contact:

Tom Wedegaertner
Cotton Incorporated
6399 Weston Parkway
Cary, NC 27513
Phone: 919-678-2220
Fax: 919-678-2230

This publication was printed by Cotton Incorporated. Additional copies may be requested by calling the Agricultural Research Division of Cotton Incorporated. Telephone 919-678-2220.

The statements, recommendations and suggestions contained herein are based on experiments and information believed to be reliable only with regard to the products and/or processes involved at the time. No guarantee is made of their accuracy, however, and the information is given without warranty as to its accuracy or reproducibility either express or implied, and does not authorize use of the information for purposes of advertisement or product endorsement or certification. Likewise, no statement contained herein shall be construed as a permission or recommendation for the use of any information, product or process that may infringe any existing patents. The use of trade names does not constitute endorsement of any product mentioned, nor is permission granted to use the name Cotton Incorporated or any of its trademarks in conjunction with the products involved.