IFB Ethanol Blog

Mexico: Top Importer of DDGs

Building upon three years of increases in broiler capacity in its already strong poultry industry, Mexico imported 708,000 metric tons of distillers dried grains with soluble (DDGS) for livestock feed from the United States in 2007, making it the U.S. ethanol industry’s largest foreign customer for the product.

Canada purchased less than half as much DDGS, importing 317,580 metric tons from the United States in 2007. Mexico, which imports DDGS as feed for poultry, beef cattle, dairy cattle, and swine, is expected to raise the bar in 2008, having already imported nearly 699,000 metric tons of DDGS from the United States during the first eight months of the year, according to Julio Hernandez, U.S. Grains Council director in Mexico and Central America. In the foreseeable future, Mexico has the potential to import as much as 4 million metric tons of DDGS, he added.

(Source: Ethanol Producer magazine)

Dakota Gold is a better feed

A higher quality of distillers’ dried grains not only contains more beneficial nutrients for livestock rations, but may be more digestible than traditional DDGS products. Of great importance is the added savings in feed costs for pork producers that can occur with the use of the new generation of DDGS, which could exceed $8 per head.  The FarmGate blog has more.

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NYT: Obama has close ties to ethanol industry

Surprise, surprise!

U.S. / Politics

Obama Camp Closely Linked With Ethanol

By LARRY ROHTER

Published: June 23, 2008

The ethanol industry has provided some top advisers to Senator Barack Obama, who has delivered ringing endorsements of ethanol as an alternative fuel.

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USDA: Enough Corn for Food and Ethanol

U.S. government data on Friday showed there is sufficient corn for the United States to supply itself with food and ethanol through next year, but the outlook hinges on cuts in exports and less of the grain being used as feed.

It is also hugely dependent on good weather in America's corn country, always a risky bet.

"This morning's crop report is an ominous sign that we are entering dangerous and uncharted waters for food prices," said Scott Faber, vice president of federal affairs for the U.S. Grocery Manufacturers Association, a trade group.

(Source: Reuters)

IFB: No Need to Rollback RFS

With gas prices shooting up again over the weekend, Illinois Farm Bureau President Philip Nelson said the state's largest farm organization strongly opposes any attempt to roll back the nation's renewable fuel standard.

Claiming that it would lower food prices, Texas Gov. Rick Perry asked the Bush administration last Friday to partially waive the standard that requires oil companies to blend ethanol with unleaded gasoline.  Perry is governor to the nation's biggest oil and gasoline producing state.

Download no_need_to_roll_back_rfs_042808.doc

Texas Governor Seeks Waiver of Ethanol RFS

Texas Gov. Rick Perry on Friday asked the U.S. government to cut "skyrocketing" food prices by waiving half of the renewable fuel standard for ethanol made from grain.

The Republican governor from the oil-producing state said in a statement that such a waiver was "the best, quickest way" to ease rising food costs before lasting damage was done.

(Source: Reuters)

What's A Fair Price for DDGs

Both the supply and use of distillers’ grains will increase, providing an alternative feed source for livestock producers, but management of price risk for DG is difficult. There is minimal correlation in price movement within the DG supply network, and cross hedging DG with the corn and soybean meal market does not guarantee success. The lack of dominant markets and the need for better price information about DG may prompt the establishment of a DG futures market.

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WSJ: Ethanol Craze Cools

Little over a year ago, ethanol was winning the hearts and wallets of both Main Street and Wall Street, with promises of greater U.S. energy independence, fewer greenhouse gases and help for the farm economy. Today, the corn-based biofuel is under siege.

In the span of one growing season, ethanol has gone from panacea to pariah in the eyes of some. The critics, which include industries hurt when the price of corn rises, blame ethanol for pushing up food prices, question its environmental bona fides and dispute how much it really helps reduce the need for oil.

A WSJ online poll asking if ethanol is a good alternative to gasoline shows 82% against ethanol, only 18% see ethanol as a good alternative.

Wall Street Journal

USDA: Less Corn for Ethanol

Slower growth in the fuel ethanol industry means less of this year's U.S. corn crop will be used to make the renewable fuel -- 3.2 billion bushels, the Agriculture Department said Friday.  It was the second time in two months that USDA lowered its forecast of corn for ethanol by 100 million bushels.

DDGs in Swine Diets

URBANA - A report providing guidelines for feeding distillers dried grains with solubles to swine is now available at local University of Illinois Extension offices. "Distillers dried grains with solubles (DDGS) in diets fed to swine" was prepared by U of I Extension swine specialist Hans H. Stein.

"DDGS is produced from the fuel ethanol industry and is available for inclusion in diets fed to swine," he explained. "During recent years, several research projections have been completed to investigate the feeding value of DDGS."

Stein's report summarizes those findings and includes tables to help producers make decisions in their own enterprises. He also includes recommendations.

"Because there is some variability among sources of DDGS, it is recommended that producers examine concentrations of nutrients in the product before buying DDGS," he said.  "To confirm that the product is a true DDGS product that has not been diluted with soy hulls or reduced in fat concentration, it is recommended that guarantees for nutrient concentrations be obtained from the supplier."

The crude protein concentration should be at least 27 percent and total fat and total phosphorus should be at least 9 and 0.55 percent, respectively.  Producers should also seek assurances that no mycotoxins are in the DDGS before it is purchased.

An important consideration in feeding DDGS is economic value.

"Because DDGS replaces both corn and soybean meal in diets fed to pigs, the economic value of DDGS depends on the cost of corn and soybean meal," Stein explained. "The maximum price that can be paid for DDGS without increasing diet costs with different cots of corn and soybean meal are detailed in the report.

"With constant costs of soybean meal, the maximum price that can be paid for DDGS increases approximately $9-$10 for each 50 cents per bushel the cost of corn is increased," he said. "Likewise, if the price of soybean meal is increased by $25 per ton, then the price of DDGS can be increased by $11-$12 without increasing diet costs.

"Before including DDGS in diets fed to swine, producers are advised to make their own calculations based on local prices for corn, soybean meal, and DDGS."

Usage of DDGS in swine diets is rapidly increasing, with many producers including 20 percent DDGS in diets fed to all categories of swine.

"While this level of inclusion is generally recommended, some producers are successfully using greater inclusion rates and it is possible that up to 35 percent DDGS can be included in diets fed to nursery pigs and growing-finishing pigs," he noted.

"However, because of the risk of producing pork with soft bellies, the inclusion of DDGS in finishing diets should be limited to 20 percent until more research has been conducted to investigate the effects of higher inclusion rates on belly firmness."