There are several ways of estimating the value of any feedstuff, including co-products. These range from simple calculations based on the value of one nutrient in one common feedstuff to very specific ration analyses and comparison. The simpler methods may help determine if a feedstuff is generally priced so that it may be a competitive feedstuff.
More sophisticated methods evaluate very specific situations. The following are some general methods of establishing feedstuff value:
1. Simple nutrient value rules of thumb
a. Compare to soybean meal protein value
b. Compare to corn energy value
2. Relative value or shadow prices. This is the maximum value based on the nutrient content in a perfectly balanced ration
3. Situation specific calculations. In this situation, a producer may be contemplating substituting one corn co-product for another with different analyses.
4. Ration-specific calculations. This is comparing
a current ration in detail to an alternative in equal detail.
Source: Iowa State Ag Extension