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Ruminant Feeding
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Ruminants are the only animals that make their own protein. They do this with the bacteria in their rumen. They can digest foods that are inedible to other types of animals.
Paunch in Feed
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Paunch manure is partially digested ruminant feed taken from the rumens of slaughtered cattle. It can be separated, dried, ground and mixed with other ingredients to create extruded cattle feed (pellets).
Argument for Use
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Proponents argue that since paunch manure comes from cattle rumen, it's already a cattle feed product.
Argument Against Paunch
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The argument against use of paunch in feed is that it's a slaughter byproduct and can spread disease.
Legality
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Currently most use of animal tissues as feed for ruminants is banned to prevent the spread of bovine spongiform encephalitis, or mad cow disease. Paunch manure isn't an animal tissue and therefore not banned.
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Use of Paunch in Animal Feed
Paunch manure, commonly called paunch for short, is the contents of the rumen, which is the first stomach chamber in cattle, goats and sheep.