Feeding Distillers Grains -- Enough or Too Much Supply?

This is a very interesting article about feeding Dried Distillers Grains (DDG) -- particularly in beef production. One thing that I believe the article misses is the impact of expanding cellulosic ethanol production as that technology is implemented. The Distillers Grains products are primarily cellulose. It is likely that many corn-based ethanol producers will add a secondary cellulosic ethanol process to convert the cellulose in the co-products to ethanol. This will mean a reduction in the amount of Distillers Grains available to be fed.

Ultimately it will be a price decision. Our livestock and commodities markets are amazingly adept at finding a price level that will fit. The same will apply to the Distillers Grain market. Ethanol prices, the cost of converting DDG to ethanol, the feed market for the DDG, transportation costs, etc. will all be factors in determining where the DDG will be utilized. Will it sit in piles and rot? I think not.

Steady Supplies or Stockpiles? Dried Distillers Grains and U.S. Beef Production

Roxanne Clemens
rclemens@iastate.edu
515-294-8842

Rapid expansion in U.S. corn-based ethanol production has created concern that large surpluses of distillers grains will occur. Expected production levels are indeed high. Using a relatively conservative set of assumptions, a recent CARD study projects that the U.S. ethanol industry will produce nearly 15 billion gallons of ethanol and 40 million metric tons of distillers grains (dry matter basis) per year by 2011. Under a much more aggressive set of assumptions, the CARD study projects that ethanol production could reach nearly 30 billion gallons annually by 2016, generating more than 88 million metric tons of distillers grains per year. (See "Emerging Biofuels: Outlook of Effects on U.S. Grain, Oilseed, and Livestock Markets")

Some U.S. distillers grains are...(complete article here).