January 28, 2013

The value of US potatoes for animal feed is about US$3.20 per hundredweight, according to a study by economist, Joe Guenthner.

Guenthner concluded the feed value of spuds rises US$0.40 for every US$1 increase in the price of a bushel of corn.

Guenthner acknowledged spud feed prices are well below growers' production costs. Nonetheless, the feed market has been a welcome channel for growers recently, given the large 2012 crop has depressed fresh prices.

Low-quality spuds and potato processing waste have long been used as animal feed.

This year, however, Guenthner said many good tubers are being fed to cattle. He anticipates more spuds will be used for feed than in past years with large potato crops because of strong corn prices, inflated by corn ethanol production and drought in the Midwest.