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October 1997
Vol. 6, NO. 4

STILL RIDING HIS HORSE

Man ascending ladder on 10,000 gallon tanks

Image of Ben Steensma

Ben Steensma ascends 10,000-gallon tanks filled with Alcomp, a patent-pending livestock feed supplement containing ethanol and urea. The liquid feed is manufactured by Steensma's southwest Minnesota company, Special Liquids, Inc.

By Andrea Frazeur

Luverne, Minn. -- Ben Steensma was worried. His horse had just eaten a feed ration the Rock County farmer had concocted for his cattle -- a feed containing ingredients that should kill a horse.

Instead, his horse liked the feed and didn't even get sick. When Steensma recovered from the shock, he began to ponder what he'd observed.

Thus began, in 1987, Steensma's long venture to manufacture and market "Alcomp," an "alcohol complete liquid feed supplement." The patent-pending formula contains ethanol, ethanol byproducts and urea.

Normally, single stomach animals like pigs, poultry and horses cannot digest urea, but Steensma claims they thrive on Alcomp. Today, sales of the still-controversial feed continue to grow, and Steensma is optimistic.

"It's been a roller coaster ride," he says. "Things are happening fast right now."

Setup in the southwest
Steensma's company, Minnesota Special Liquids, Inc., is located in the southwest corner of Minnesota. He recently brought in his brother, former Minnesota legislator Andy Steensma, as president. Their operation, set up in a former car dealership, ships several semi-loads of Alcomp each week. Feed stuffs and finished product are stored in 10,000- gallon tanks on site.

Livestock producers in Minnesota, Iowa, South Dakota and Texas are using Alcomp. Recently, farmers from Illinois and Missouri visited Special Liquids and asked Steensma to open a plant in their area. Veterinarians and nutritionists throughout the nation have expressed interest in learning more about the feed.

Steensma's tests show that feeding Alcomp increases meat, milk and egg yields while lowering production costs. Academic studies show ethanol can increase weight gains in cattle. Scientists also proved that urea, a colorless crystalline compound formed in the body or made synthetically, can supply part of a ruminant animal's protein needs when fed with corn or molasses.

But researchers have yet to figure out why single stomach animals thrive on Alcomp. Steensma has difficulty convincing scientists his product works.

There were times in the last 10 years when he wanted to quit. When he was really down, Steensma relied on Duane Krueger, a Minnesota West Small Business Management instructor in Pipestone and a good friend. Krueger led Steensma to AURI in the early 1990s.

"Developing new products is not easy," affirms Steve Olson, manager of AURI's Marshall office. "But Steensma's persistence in marketing a unique product is paying off."

AURI steps into the fray
Steensma first received AURI financial and technical assistance in 1992. "I couldn't get a small business loan. It was too risky initially. There really is no funding mechanism outside of AURI for a business like this."

In 1990 Steensma began conducting his own feeding trials and consulting with experts to revise his formulation.

His swine tests showed an increase in average daily weight gain, more pounds of salable meat, less fat, and enhanced flavor and taste with less feed cost. The product also decreased ammonia in animals' blood, which could be partially why barn odor is reduced when the feed is used. Because it's a liquid, the feed also reduces dust in swine barns.

Broiler hen tests showed similar results, and laying hens produced more eggs. Cows had increased milk production, decreased feed costs and were more lean and muscular.

Steensma is working with large turkey and swine production companies. He's dealt with several producers who are making their own assessments of Alcomp. He also completed tests with the University of Minnesota-Morris showing simply that Alcomp did not cause death in hogs. "That was a big thing," Steensma says, "to prove the validity of our product."

Sales are increasing, although Steensma isn't at capacity -- about four semi-loads per day. The machinery is simple, however, and he sees little difficulty with expanding at the current site or in an area that has both an ethanol plant and producers interested in Alcomp.

"Good things do not come fast," Steensma maintains. "It's been tough, but in the last year, it's beginning to pop."

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