The event will focus on increasing exports of both coarse grains and the emerging growth market of the ethanol co-product dried distillers grains with solubles (DDGS), and features an array of international leaders in ag commerce, including Dr. Bob Thompson with the National Center for Food and Agricultural Policy and Gary Blumenthal, president and CEO of World Perspectives Inc.
Dr. Thompson is scheduled to deliver the keynote address on the first day of the conference to provide perspective and insight on the world supply and demand situation will give attendees a better understanding of the world market. Blumenthal’s remarks during the second day luncheon will focus specifically on the growing global demand for U.S. DDGS. “As long as global population continues to grow, the demand for meat, milk and eggs will increase, and subsequently the demand for livestock and thus for DDGS will climb as well,” Blumenthal says.
More than 170 international buyers of U.S. DDGS and coarse grains are scheduled to attend the event, including representatives from China, Japan, Taiwan, Korea and Vietnam. Why should a corn farmer plan to attend? Consider this. The United States grows 42 percent of the world’s corn and supplies more than 60 percent of the world’s corn exports. Nearly 2 billion bushels of corn were exported last year to about 60 different countries and the current forecast for this year is just over 2 billion, according to USDA. Exports of DDGS to Southeast Asia doubled last year over 2008 and were already up nearly 75 percent over 2009 at the beginning of this year. With yet another record corn crop expected this year, it is more important than ever to expand our exports.
Join more than 300 other U.S. producers and agribusinesses for the Export Exchange. Registration is available on-line with a $100 discount for registrations received before September 4.
In the last, but certainly not the least, of our posts from the recent 2010 Corn Utilization and Technology Conference (CUTC) in Atlanta, we hear from Steffen Mueller, principal research economist at the University of Illinois-Chicago Energy Resources Center.
Mueller did two presentations at the CUTC, both related to the increasing efficiency of ethanol production that continues to improve its carbon footprint under life cycle analysis. For one, Mueller says, the more useful co-products that can result from ethanol production, the better its carbon footprint. “With corn ethanol you also produce an animal feed product simultaneously, to which you have to assign a co-product credit, meaning you subtract the emissions to produce that feed product from the life cycle of corn ethanol,” Steffen explains in an interview. “Now, we’re also looking at other co-products. For example, a lactate which is a solvent that can substitute for petroleum-based solvents in the marketplace.”
Mueller also presented his findings from a recent study showing how ethanol plants are improving in efficiency. “We did a large survey of corn ethanol plants and assessed the energy consumption and showed that the thermal and electric energy that plants require to turn bushels of corn into corn ethanol has decreased by 30 percent over the last eight years,” he said. (read about that survey here)
Mueller says there is a lot of updated industry data coming together that shows that corn ethanol is becoming more efficient, which should help when it comes to regulations for low carbon emissions on both the national level and in states like California.
Listen to an interview Chuck Zimmerman did with Steffen Mueller at CUTC here:
Download the interview here: Steffen Mueller Interview
By replacing up to 20 percent of the flour used in a recipe with distillers dried grains, the scientists have managed to up the protein and fiber content of traditional breads such as naan and chapatti. People in Asia and the Indian Subcontinent are then able to increase the nutritional content of their diet despite lacking the money to purchase more expensive foods, particularly meat.
Many in the world fight malnourishment caused by lack of fiber and protein. Most are children who need even more nutrients during their vital years to even survive. With research showing that distillers dried grains and ethanol are part of the solution, it is unconscionable to insinuate that they are part of the problem.
Tell those with vested interests and poor science that you have thought about it already. As a humanitarian, you realize it is time to put rhetoric aside and push for a real change that can save lives and help our environment. Tell them you back ethanol.
You may be interested to know how grain quality affects ethanol production and DDGs. If so, then you would interested in Leland McKinney’s presentation at the Corn Utilization and Technology Conference. I spoke with him to learn about his research on this topic. Leland is Extension State Leader in the Dept. of Grain Science at Kansas State University.
To start with he says that getting information presented a challenge since there’s not a lot of it publicly available. So, without much data to work with he visited personally with industry representatives to find out their thoughts and put together an overview presentation on the subject. He says moisture and how it impacts grinding efficiency and water balance in an ethanol plant were mentioned as well as quality attributes like fermentable starch and test weight. When it comes to the DDGs he says mycotoxins came up frequently as a concern. The bottom line though is that there needs to be research on how grain quality effects the production of ethanol. Hopefully that will be done before another CUTC!
You can download (mp3) and listen to my interview with Leland here:
The ethanol by-product known as dried distillers grains, or DDGs, is being fed more often these days to all types of livestock. At first, it was mainly beef and dairy cattle producers that utilized the product, which is rich in protein, fiber and oil. Now more hog producers are using the product, which serves to recapture about one third of the corn that goes into making ethanol for the livestock feed market. Each bushel of grain used in the ethanol-making process produces about 18 pounds of DDGS.
Companies like Novus International are helping to increase the use of DDGs in pork production by researching how much DDGs can be included in hog rations at different ages for proper nutrition. “We’ve increased the inclusion rates of distillers from just a few years ago, somewhere around ten percent, now to 30-40 percent in some diets,” says Brad Lawrence, Technical Manager for the Novus pork business in North America.
During the recent World Pork Expo in Des Moines, Lawrence said that has fundamentally changed the nutritional content of the pig’s diet, so Novus did some modeling and research and found that including oxidative balance additives in the feed helped get optimum performance from the animals. “Ethanol is here to stay,” Lawrence said. “There’s some concerns about corn availability, but as we put corn into an ethanol plant, we’re getting distillers back out. As swine nutritionists, that means we have to learn what the optimum nutritional technologies are that we can implement to get the most value out of the distillers.”
Listen to an interview with Brad Lawrence from World Pork Expo here:
The day after USDA forecast a three percent increase in corn exports this coming year, China gave that prediction a boost by purchasing 14.5 million bushels, with the promise of more. The 369,000 tons, bought by China’s state-owned Cofco Limited, was the country’s second major purchase in less than a month, according to USDA.
This is a big deal because China is a big user of corn and normally an exporter, not an importer. The last time China was a net importer of corn was 14 years ago when the country’s crop was hit by drought. This actually marks the first time China has bought U.S. corn in nearly a decade.
It’s also a big deal because we have plenty of corn on hand and another record crop expected, so increasing exports is important for farmers to get some decent prices.
The U.S. Grains Council (USGC) thinks it’s a pretty big deal. “If this is true, and we certainly hope it is, we view it as good news,” said Thomas Dorr, president and CEO of USGC. “This may be the beginning of some opportunities to trade more consistently with China.” Dorr says it’s possible as many as 15 U.S. cargoes have been sold to the Chinese.
China has been an increasingly good market for dried distillers grains (DDGs), the by-product of ethanol production, and Dorr says he expects that to continue. “As a matter of fact, there is still very strong demand for DDGs,” said Dorr. China bought 524,000 tons of DDGs in 2009 and so far this year they have already puchased 240,000 metric tons.
It is pretty hard to improve upon corn-fed beef, but research coming out of the University of Illinois shows that there may be a way to maintain the delicious flavor and reasonable cost while improving farmer profitability.
Beef lovers know that high marbling makes a great steak. Just by looking at the cut in the butcher’s case, they can see the quality. Corn-fed beef offers better marbling than any alternative.
Now, farmers can achieve the same succulent steak by utilizing the ethanol co-product distillers dried grains. Created when starch is removed from corn to make ethanol, DDGs are rich in essential nutrients such as protein, fat, minerals and vitamins. As one bushel of corn produces 2.8 gallons of ethanol and 17 pounds of distillers grains, they offer an economical, environmentally friendly alternative.
The research indicates that beef produced using this product can improve farmers’ bottom lines without compromising quality. Following the feeding guidelines that the trial recommends even cuts the time needed to prepare the cattle for market.
“We believe feeding a high-grain ration to cattle at a young age and finishing them on co-products is the most profitable way to produce high-quality beef,” said University of Illinois animal scientist Dan Shike.
Research from the University of Nebraska- Lincoln shows that feeding “reproducing cows corn co-products is beneficial to their post calving gain, reproduction and may improve beef production sustainability.” Again, corn co-products produce a win-win situation as growers can improve profitability implementing suggestions in the while increasing industry sustainability.
With growers increasing profitability and consumers enjoying the same corn-fed taste that they already love, everyone wins.
Some may argue that food and fuel are at odds, but DDGS provide a perfect example of how we can have domestically produced ethanol and a functional and efficient feed product. The more facts that emerge, the more evident it becomes that corn can meet these needs making both refiners and livestock growers profitable while sparing consumer pocketbooks.
Food companies that rely on cheap corn are running around like chickens with their heads cut off and crying foul again with so-called “studies” submitted to the EPA that “prove” food prices will increase if the blend rate for ethanol in gasoline is increased to 15 percent.
But wait just a minute. The latest Consumer Price Index shows consumers are paying less for groceries today than they were just six months ago. The May index for meats, poultry, fish, and eggs was down almost a full percentage point from April and eggs index declined 6.5 percent. The index for dairy and related products fell 0.5 percent in May and has declined 5.6 percent over the past year.
What’s up here, Chicken Little? Because, despite the fact that a number of ethanol plants have closed over the past year, ethanol production is still increasing. The most recent figures from the Energy Information Administration (EIA) were for March and they showed that American ethanol facilities produced 640,000 barrels per day in March 2009 – up 79,000 barrels, or 12 percent from a year ago! Assuming that continues, the ethanol industry will once again produce a record amount of ethanol and distillers grains in 2009.
Point being, at the same time ethanol production is increasing, food prices are heading back downward (finally!). In other words – no correlation. The sky is not falling.
Iowa corn growers are investing in a corn oil and animal feed processor plant to add value to corn ethanol.
The investment in Merrill, IA-based Plymouth Oil Company is being made through Iowa Corn Opportunities, an equity fund established by the Iowa Corn Growers Association for investment and business development. “Plymouth Oil Company represents an important step forward for the corn ethanol industry which is currently suffering from depressed margins. Adding value to corn made ethanol is critical right now,” says Pam Johnson, President of ICO and corn grower from Floyd, Iowa. “Plymouth Oil Company is creating high value human food, high value animal feed while demonstrating that both food and fuel can be economically produced from the same kernel of corn.”
Under the agreement, Plymouth will purchase corn germ for further value-added processing in the Merrill facility. The raw germ will be converted into crude corn oil for human consumption and the resulting de-oiled germ will be incorporated into high value livestock feed. The production plant uses proven hexane extraction technology that efficiently extracts corn oil with targets to produce approximately 60 tons per day of crude corn oil and about 240 tons per day of corn germ meal.
“We are able to increase the protein content of the distillers’ grains, making them more useable as a feed source in the poultry, swine and dairy markets,” says Dave Hoffman, President of POC. Hoffman also says that “corn oil is a high value vegetable oil product that is increasing in demand as food processors switch from hydrogenated soybean oil in an effort to reduce trans-fats.”
Iowa Corn Opportunities made the decision to invest in Plymouth Oil Company because it “ultimately represents an important value added opportunity for the ethanol industry, livestock producers, consumers and corn growers alike.” With the investment, Iowa corn growers will also retain a seat on the Board of Managers for Plymouth.
Dairy farmers and livestock producers from southern Missouri gathered at the McCallister Farm last week to explore nutritional considerations, storage techniques and the economic advantages for feeding livestock the ethanol co-product dried distillers grains (DDGs). Sponsored by the Missouri Corn Merchandising Council (MCMC) and University of Missouri Extension, the field day drew a crowd of 75 producers and guests from across the state.
“As a feed source, distillers grains offer economic and nutritional benefits to Missouri’s livestock producers,” said Gary Wheeler, Missouri Corn director of business development. “This field day allowed dairy producers to see those benefits firsthand. We hope they will take advantage of this value-added feed and apply what they learned at this event in their own operations.”
During the field day, producers learned the proper storage and handling techniques for dried distillers grains from the McCallisters, who utilize the ethanol co-product in their operation. Jeff Drost (pictured), animal nutrition sales manager with LifeLine Foods of St. Joseph, Mo., explained the latest technology and uses of corn and its co-products and LifeLine also provided the distillers grains for the field day.
The event will focus on increasing exports of both coarse grains and the emerging growth market of the ethanol co-product dried distillers grains with solubles (DDGS), and features an array of international leaders in ag commerce, including Dr. Bob Thompson with the National Center for Food and Agricultural Policy and Gary Blumenthal, president and CEO of World Perspectives Inc.
In the last, but certainly not the least, of our posts from the recent 
You may be interested to know how grain quality affects ethanol production and DDGs. If so, then you would interested in Leland McKinney’s presentation at the Corn Utilization and Technology Conference. I spoke with him to learn about his research on this topic. Leland is Extension State Leader in the Dept. of Grain Science at Kansas State University.
The ethanol by-product known as dried distillers grains, or DDGs, is being fed more often these days to all types of livestock. At first, it was mainly beef and dairy cattle producers that utilized the product, which is rich in protein, fiber and oil. Now more hog producers are using the product, which serves to recapture about one third of the corn that goes into making ethanol for the livestock feed market. Each bushel of grain used in the ethanol-making process produces about 18 pounds of DDGS. 
Companies like 
The day after USDA forecast a three percent increase in corn exports this coming year, China gave that prediction a boost by purchasing 14.5 million bushels, with the promise of more. The 369,000 tons, bought by China’s state-owned Cofco Limited, was the country’s second major purchase in less than a month, according to USDA. 
But wait just a minute. The latest 
The investment in Merrill, IA-based 
Under the agreement, Plymouth will purchase corn germ for further value-added processing in the Merrill facility. The raw germ will be converted into crude corn oil for human consumption and the resulting de-oiled germ will be incorporated into high value livestock feed. The production plant uses proven hexane extraction technology that efficiently extracts corn oil with targets to produce approximately 60 tons per day of crude corn oil and about 240 tons per day of corn germ meal.