November 4, 2009

Distillers grains production, use expanding

Reuters has published a good article on distillers grains -- the feed product produced by corn ethanol plants.

The article explains that as ethanol production expands into the next year, the supply of distillers grains will increase as well. In fact, estimates in the article are that distillers grains production will increase during the 2009-10 crop year to 28 million to 30 million tonnes, up from about 24 million to 25 million tonnes in the 2008-09 crop year.

It then goes on to explain that distillers grains, which is an outstanding feed ingredient, can help livestock producers save money on feed costs.

(Check out this related post on how distillers grains can bolster cattle producers' bottom lines.)

The Reuters piece, written by Michael Hirtzer, includes quotes from Darrel Good, extension economist at the University of Illinois; Darrell Mark, extension livestock marketing specialist at University of Nebraska-Lincoln, and Dan Keefe, manager of international operations for distillers grains at the U.S. Grains Council. Hirtzer was in Nebraska earlier this year for a crop tour.

The article notes that distillers grains costs some 22 percent less than corn -- on a per ton basis. However, distillers grains actually has a higher feeding value than straight corn in many feed rations, so that value - the savings potential - is actually greater than that.

Mark noted that some hog producers have increased the amount of distiller's grain in feed formulations to as much as 20 percent, up from about 10 percent. Cattle producers can use double that (or more), depending on their access to the product.

Meanwhile, while domestic demand for distillers grains is expected to grow, exports are expected to increase from 5 million tonnes to 6 million tonnes this crop year, Keefe said.

For more details, be sure to check out the article.

The Nebraska Corn Board also has a series of handbooks on feeding and storing distillers grains.

No comments:

Post a Comment