Coping with co-products

16th January, 2008

The rise of US maize ethanol production is giving new prominence in the grain and feed industry to a commodity that has been around for centuries: distillers’ grains. Because of the need to store and transport huge quantities of the co-product, most ethanol plants dry the wet distillers grains after mixing in the solubles from the process, resulting in dried distillers grains and solubles (DDGS).

Grain traders, animal nutritionists and feed millers worldwide are now adjusting to an unprecedented increase in the supply of this feed ingredient.

US ethanol production during 2006 was 18.6 million tonnes (4.9 billion gallons) at 110 plants, according to the US Renewable Fuels Association (RFA). This amount would have required about 44 million tonnes (1.7 billion bushels) of maize, and yielded nearly 15 million tonnes in DDGS equivalent, because for every tonne of maize used for ethanol, about one-third remains in the form of DDGS. Production in 2007 was up by about one third over the previous year, but total annual ethanol capacity at plants in operation or under construction or expansion is now 50.9 million tonnes (13.5 billion gallons), double the current production level.

The USDA is forecasting that 82 million tonnes (3.2 billion bushels) of a record maize crop of 338 million tonnes (13.2 billion bushels) for the 2007-08 crop year (Oct-Sept) will go to ethanol production. This means that DDGS production volumes in the US could approach 30 million tonnes within a couple of years.

The traditional use of distillers’ grains is for cattle and other ruminants, but its availability and low cost have created the opportunity to include it in feed formulations for monogastric livestock. This process is well under way in the US, where extensive research is permitting DDGS to partially displace both maize, and to a much lesser extent, soybean meal in swine and poultry feed rations.

However, according to Erick Erickson of the US Grains Councils (USGC): ‘The inclusion rates are still quite limiting: around 15% for swine and 5% for poultry. The limits in cattle feeding are 40-50%, so it is not a complete substitute for corn and soybeans.’

Countries that are traditional markets for US maize exports may find their supply reduced. To partially compensate, many countries are beginning to import DDGS as they learn about its benefits. US DDGS exports will be around 2 million tonnes in 2007, an increase of about 60% from the previous year.

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