provided by: 
Book cottonseed now, and be ready to receive it earlier. That's the long and short of what's shaping up to be a shorter cotton harvest and a much shorter cottonseed supply compared to recent years, says Cottonseed Merchandiser Austin Rose, Cape & Son, Abilene, TX.
In August, USDA forecast 1 million fewer tons of cottonseed would be harvested compared to the past two crops. July crop condition reports showed 31 percent of the current cotton crop in very poor or poor condition, compared to 12 percent a year ago; 40 percent was in good to excellent condition, compared to 60 percent a year ago.
"We continue to see these extremely high temps — and a faster-maturing crop," Rose says. "Cotton gins are getting started earlier than normal, and the gin runs will be shorter than normal because of crop losses and abandonment.
"Our concern is that a lot of the production will be harvested in a 60-day period as opposed to a 90-day period. Buyers and sellers alike are going to have to be ready to take their cottonseed during that time period," he says, adding that ginning could be done as early as late November, as opposed to December. "If they don't take it, contracts could be washed or canceled."
Rose encourages dealers to look at the wording of their cottonseed contracts written for Oct.-Nov.-Dec. delivery. "If the clause is for 'as ginned' or 'as available,' dealers are responsible to pick up their cottonseed as the ginner is ginning," he says. "This puts pressure on the dealer to make sure he's got enough trucks. He might need 60 truckloads instead of 40 in a month."
Dairy producers also should be prepared to receive their cottonseed if buying "as-ginned," to avoid likely post-harvest price hikes, he says.
Larry Johnson, Cottonseed LLC in La Crosse, WI, concurs. "Transportation is going to be an issue. We're telling producers to book their needs through January. The reason is you have a smaller crop. A lot will be stored, and once harvest is done, there won't be that many sellers until late winter or early spring."
How small is small?
Johnson puts the anticipated smaller crop into perspective, citing USDA's most recent report of 20.43 million bales, compared to last year's 23.89 million bales.
"Twenty plus million bales is not that small of a crop; small maybe compared to the last two bumper crops. Although, many people in the industry believe the crop in the end will be below the 20 million bale mark," he says. "The 20.43 million bale crop equates to about 7.1 million tons of cottonseed vs. 8.1 million tons last year. New crop prices are 20 to 30 percent higher compared to last year in the January forward time frame.
"We feel the fall will stay fairly strong," he continues. "We're seeing people waiting and looking to buy more hand-to-mouth in the January forward period."
Both Johnson and Rose agree that once the gins are done, they're done.
According to Rose, "What they've produced will go into storage and immediately we'll see an increase in prices because of storage costs. Anyone with the ability to store cottonseed needs to take advantage of buying and taking delivery during harvest."
In late August, Rose was encouraging cottonseed users to book at least 50% or more of their needs.
Unique 3-in-1 feedstuff
Triple checking your cottonseed contracts now will help ensure high-producing cows continue to benefit from cottonseed's unique triple-nutrient source, which includes energy, fiber and protein, says Dr. Paul Chandler, retired dairy nutritionist, Dresden, TN.
"From a nutrition standpoint, it is very difficult to find an immediate replacement for whole fuzzy cottonseed when it has to leave the diet as a result of economics," Chandler says.
"Whole fuzzy cottonseed in the diet of a high-producing dairy cow was meant to be," he says. "Cottonseed has a remarkable amount of energy due to its oil content. At the same time, a dairy cow needs fiber to keep the rumen healthy. Lo and behold, whole cottonseed has a remarkable amount of fiber.
"We have to feed milking animals a good amount of protein," he continues. "Whole cottonseed provides a modest amount of protein — in the 20 percent range."
Oftentimes, producers reach a point where they are struggling to get enough energy into the cow and not violate the fiber balance in the rumen, he explains. "Plain old fuzzy cottonseed provides these in the proper balance."
Unlike finely ground corn, he adds, cottonseed does not cause starch buildup in the rumen.
"Each cottonseed is like a time-release capsule," he says, describing how the feedstuff slowly breaks down in the rumen. "It has to get hydrated; then it has to get inoculated by rumen organisms that produce enzymes that break down the seed and through the seed coat. Hours later, the inner part of that cottonseed is released into the digestive process. By that time, we may be post-rumenal, so a lot of the fats and oils are being released and becoming available in a way that optimizes feed utilization."
Feeding strategy
Chandler says the reputation of cottonseed has "changed immensely" since he was a boy in the Southeast where whole cottonseed was a waste and fed to stocker cattle, dry cows and beef cattle.
"That is not the way things are today," he says. "We have these 8 to 9 million dairy cows in the hands of professional nutritionists who are under pressure to maximize production.
"Today, more than half of the whole fuzzy cottonseed supply goes directly to animal feeding," he continues. "We now have direct competition between the dairy producer and the cotton processing industry as far as who gets the supply."
For producers faced with cutbacks due to a shorter cottonseed supply or higher prices, Chandler says to "make certain to feed the cottonseed at the place it's giving the greatest benefit."
He suggests prioritizing cottonseed this way:
- Feed it to the high-producing cows that would best benefit from this premium product. You don't have to feed it to dry cows or heifers.
- Feed a reasonable amount. A minimum of 3 pounds/cow/ day is recommended (5 to 8 pounds is generally recommended). He adds that "there is no justification for feeding 8 to 10 pounds because the ration will get out of balance."
Go with the Flo
Chandler admits there are challenges to handling whole fuzzy cottonseed for the feed industry and dairy producers, alike. "It's bulky," he says, meaning you cannot get a high-density load, and "it doesn't flow exactly like shell corn or soybean meal."
No doubt, the feedstuff can clump together and clog milling equipment, which can impact on labor and management costs. These facts prompted Cotton Incorporated to find a solution. In 1998, it introduced EasiFlo™ cottonseed, which eliminates the flowability problem.
A patented coating process seals cottonseed lint with a light paste of water and feed-grade cornstarch, which keeps the seed from sticking together.
According to Tom Wedegaertner, director of cottonseed research and marketing for Cotton Incorporated, EasiFlo cottonseed provides all the nutritional benefits of fuzzy cottonseed, but without the transportation and handling issues.
"EasiFlo cottonseed can be handled much more efficiently and effectively than fuzzy cottonseed," Wedegaertner says. "Fuzzy cottonseed is generally moved with a bucket loader and a live-bottom truck. EasiFlo flows freely and can easily be augered through traditional grain handling equipment, which greatly reduces handling time and labor costs."
Additionally, EasiFlo cottonseed offers storage advantages. The coated seed has a greater bulk density than other cottonseed products. Whole fuzzy cottonseed and mechanically delinted cottonseed weigh 21 and 25 pounds/cubic foot, respectively. EasiFlo cottonseed weighs 27 pounds/cubic foot. This allows feed companies and dairy producers to store up to 25% more EasiFlo cottonseed in the same amount of space originally used for fuzzy cottonseed.
From a shipping standpoint, the higher density saves EasiFlo cottonseed users about $20 a ton over fuzzy cottonseed on every 1,000 miles of freight. Plus, EasiFlo cottonseed can be moved in hopper-bottom trucks and railcars vs. the more expensive live bottoms.
Bottom line
Wedegaertner adds that research conducted at the University of Tennessee showed EasiFlo cottonseed to have a slight advantage over the traditional seed in both dry matter intake and feed efficiency.
"EasiFlo cottonseed can help boost milk production when added to the rations of lactating dairy cows," he notes. EasiFlo cottonseed can be fed at the same rate as fuzzy cottonseed — 5 to 8 pounds/cow/day.
Like Chandler, he underscores that a minimum of 3 pounds/cow/day should be maintained in the ration of the high-producing milking string.
With its all-in-one source of essential nutrients and easy handling characteristics, EasiFlo cottonseed is ideal for mills that are currently unable to handle fuzzy cottonseed.