Posted By Cindy
June 19, 2009
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.
Posted By Cindy
May 11, 2009
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.
Posted By Cindy
April 23, 2009
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.
Posted By Cindy
April 13, 2009
New research indicates that dried distillers grains (DDGS) can help hog producers looking for new feed supplements for younger swine.
According to studies by Agricultural Research Service (ARS) scientists, feeding the ethanol by-product to piglets can give their immune systems an extra boost.
The majority of DDGS are fed to beef and dairy cattle but livestock producers also use DDGS to supplement the diet of older pigs. So Tom Weber, a physiologist at the ARS Swine Odor and Manure Management Research Unit in Ames, Iowa, partnered with research leader Brian Kerr and microbiologist Cherie Ziemer to study the effects of feeding DDGS to young pigs.
What they found was an increase in cytokine expression in the pigs’ small intestine, which they linked to DDGS consumption. Cytokines are chemical messengers that are essential for proper immune function. This response reinforced findings of previous DDGS studies showing that pigs consuming diets supplemented with DDGS exhibited reduced levels of ileitis, a common inflammation of the small intestine.
Because too much fiber can reduce the growth of piglets, the key is to feed them just enough DDGs to boost their immune systems, which the researchers capped at about 7.5 percent, compared with up to 40 percent for adult pigs.
