Domestic Fuel

POET is targeting dairy producers with the introduction of a new low-fat distillers grains product.

The South Dakota-based ethanol producer notes that research indicates its new Dakota Gold Low Fat dried distillers grains with solubles (DDGS) can be fed to dairy cattle at a higher inclusion rate than traditional DDGS.

According to Kip Karges, PhD, Technical Services and Research Director at POET Nutrition, the product has just a 5 percent fat content, which offers a new opportunity for dairy operations that have had to limit DDGS use in the past because DDGS fat content can cause milk fat depression issues. “Dairy operations can feed more low fat DDGS to their livestock by using Dakota Gold Low Fat,” Karges said. “That will allow for optimum milk production while lowering ration cost.”

General research into the subject has shown that increasing concentrations of low-fat distillers grains have correlated to increasing efficiency of milk production. “When feeding regular DDGS you really have to limit feeds with high levels of unsaturated fatty acids and may cause limitations in formulation procedures,” said Paul Kononoff, Associate Professor of Dairy Nutrition/Dairy Nutrition Specialist at the University of Nebraska in Lincoln. “The reduction in fat in low fat DDGS allows for higher inclusion of the co-product without the worries of milk fat depression.” Kononoff and others as the University of Nebraska have performed trials for POET and will be releasing their data to the public this summer.

A deliberate research and development process was followed in bringing Dakota Gold Low Fat DDGS to market. The new Dakota Gold LF DDGS option is possible because of POET’s Voila™ Corn Oil production, which removes oil from DDGS. The resulting low fat DDGS have been researched and will continued to be researched to find new ways in which distillers grains, the second-largest traded feed ingredient on the market, can be used to produce protein for human consumption. Nutritionists at POET are providing animal research data to nutritionists and the feed industry in general regarding Dakota Gold LF DDGS. Research and nutrition details are available at the Dakota Gold website.

There is a lot made about tensions between the ethanol and livestock industries but the distillers grains co-product of ethanol production is providing significant benefits for animal producers even as ethanol has helped prop up corn prices.

A great discussion at the 6th Annual Iowa Renewable Fuels Summit featured corn and cattle organizations on the same panel talking about the “Synergies of Livestock and Ethanol.”

Moderator Iowa Agriculture Secretary Bill Northey opened the discussion by noting that sales of crops and livestock have risen as ethanol production has increased from $12 billion in 2002 – 6 billion in crop and 6 billion in livestock – to $24 billion in 2010, and 2011 is expected to be about $30 billion with at least $13 billion of that for livestock. “$13 billion on the livestock side versus $6 billion nine years ago,” Northey said. “Has ethanol been good for livestock agriculture in Iowa? I think very clearly.”

Listen to a brief interview with Secretary Northey here: Iowa Agriculture Secretary Bill Northey

Iowa Cattlemen’s Association Executive Director Matt Deppe says it’s easy to see the benefits that distillers grains (DDGS) have brought to especially cattle feeders. “We look at it as a corn replacement,” Deppe says about DDGS. “It means that they (feedlot operators) have another option that’s cost effective to put into their rations.”

Listen to an interview with Matt Deppe here: Matt Deppe Interview

The livestock industry has traditionally been the most important market for corn, noted Iowa Corn Growers CEO Craig Floss, although use for ethanol has increased significantly in the past decade. “But a third of every one of those bushels that goes into an ethanol plant goes into DDGS,” he said.

The panel also included Randy Ives, director of ethanol services for the commodity management firm Gavilon Group.

Listen to or download the entire panel discussion here: Ethanol and Livestock panel

Photos from 2012 Iowa Renewable Fuels Summit

The U.S. Grains Council recently held workshops in Guangzhou and Qingdao to promote the ethanol co-product distillers grains (DDGS) in China.

“The day-long sessions were designed to provide an exchange of comprehensive DDGS market information, including discussions and analysis of the value of U.S. DDGS,” said Alvaro Cordero, USGC manager of DDGS.

Cordero says they had 200 to 250 people, including buyers and USGC member companies. “This created a good opportunity for buyers and sellers to make connections,” he said.

The conferences, organized in cooperation with FoodChina Company, included presentations on DDGS use in swine, poultry and dairy rations, in addition to quality control, DDGS supply and demand, and pricing.

The United States continues to export a good volume of DDGS to China, despite an anti-dumping case initiated by the Chinese government last winter. U.S. shipments in the January-to-September period were down 49 percent from the previous year but still totaled almost one million metric tons, making China the number two export market for distillers grains.

A three-year initiative by Nebraska corn growers to fund research into feeding the ethanol co-product distillers grains to cattle has resulted in some new breakthroughs.

The initiative created a beef cattle advisory committee to work with University of Nebraska researchers to identify research projects that would benefit cattle producers and the Nebraska Corn Board then provided funding for the projects.

“We were very pleased with how everything came together, as it allowed the corn checkoff to fund key research and more quickly advance the understanding of feeding distillers grains to cattle,” said Kelly Brunkhorst, director of research for the Nebraska Corn Board. “While this initiative has ended, the Nebraska Corn Board continues to fund research and further expand our knowledge and understanding of feeding distillers grains to cattle. We believe distillers grains, which are produced by ethanol plants, give Nebraska cattle producers a tremendous advantage in the marketplace, so the more we know the better.”

Studies involved both feedlot cattle and forage cattle. Among the findings for feedlot cattle is the drying distillers grains increases production costs and greenhouse gas emissions and has a less positive an impact on cattle performance compared to using wet distillers grains. Modified distillers grains, meanwhile, is intermediate to wet and dry distillers grains. Understanding this has huge implications for Nebraska as Nebraska cattle producers can utilize wet distillers grains due to the proximity of corn, cattle and ethanol plants. “The research provided excellent results on comparing these types of distillers grains,” said Galen Erickson, a beef feedlot specialist with the University of Nebraska.

For cattle on forage, the study found that the energy value of distillers grains in forage based-diets was a major need by the industry. “Thanks to research conducted through the initiative, this is now known and is well established,” said Aaron Stalker, a beef range specialist with the university. The comparison was also made to other major energy supplements in forage diets, such as corn.

Brunkhorst said continued research is necessary as ethanol production technology continues to advance and new techniques like extracting corn oil for other uses results in changes to the make-up of the distillers grains.

Get out your 2012 calendars and mark the date for just under a year from now to attend the next global event to help increase exports of ethanol co-products for livestock feed.

Once again, the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA) are teaming up for the Export Exchange 2012, an international trade conference focused on the export of U.S. coarse grains and co-products, including distiller’s dried grains with solubles (DDGS) and corn gluten. The last such event was held last year about this time in Chicago.

“Export Exchange 2010 was a huge success,” said Wendell Shauman, USGC chairman. “People from all around the world gathered in one central location to make deals and get information regarding these vital commodities. Business contacts made during the conference are still being used today.”

Export Exchange 2012 will be held Oct. 22-24 at the Minneapolis Marriott City Center. Additional information will be posted at www.exportexchange.org as it develops.

A new U.S. Department of Agriculture (USDA) report finds that the ethanol co-product known as distillers grains or DDGS is replacing even more corn and soybean meal in livestock and poultry feed rations than previously thought.

According to the report by USDA’s Economic Research Service (ERS), “We found that, on average, for the past 5 crop years (2006/07-2010/11), 1 mt of distillers’ grains substitutes for about 1.22 mt of corn and soybean meal combined in the United States.”

The report also noted that “Feed market impacts of increased corn use for ethanol are smaller than that indicated by the total amount of corn used for ethanol production because of DDGS.” In fact, ERS found the amount of feed (corn and soybean meal) replaced by the DDGS represents nearly 40 percent (on a weight basis) of the corn used in the associated ethanol production process for a given crop year.

Read the report here.

“The value of the animal feed produced by the ethanol industry has long been misunderstood, understated and misrepresented,” said Geoff Cooper, Renewable Fuels Association Vice President of Research & Analysis. “Distillers grains continue to be the industry’s best kept secret, despite the fact that we are producing tremendous volumes of this high value feed product today. DDGS and other ethanol feed products significantly reduce the need for corn and soybean meal in animal feed rations. Over the past several years, distillers grains have been one of the most economically competitive sources of energy and protein available on the world feed market. While some critics of the ethanol industry attempt to downplay the role of DDGS, the facts simply can’t be ignored.”

RFA believes the report has important implications for discussions regarding ethanol’s impact on feed grains availability, feed prices, land use effects, and the greenhouse gas (GHG) impacts of producing corn ethanol.

Read more about the report from RFA here.

In a cost-cutting measure, USDA’s National Agricultural Statistics Service (NASS) is planning to cancel the Distiller Co-Products for Feed Survey announced in March slated to be done in January 2012. The report, which was designed to better calculate the use of the ethanol co-product known as DDGS in livestock feed, is one of several that USDA plans to eliminate or reduce in light of funding reductions for the current fiscal year and expected reductions in FY 2012.

“We were very disappointed to hear the survey is being cancelled,” said Geoff Cooper with the Renewable Fuels Association. “NASS staff had prepared an excellent survey that was set to go out to thousands of livestock and poultry feeders in January 2012. Pulling the plug on this survey means many of the questions about how co-products are actually being used in the real world will remain unanswered. The feed industry, ethanol producers, and regulators alike desperately need the type of information this survey would have provided.”

NASS conducted a limited survey of DDGS use in 2007, funded by the Nebraska Corn Board, this report was anticipated to be much more comprehensive in scope. A Federal Register notice regarding the NASS program changes is expected to be published soon.

Ethanol exports took a dive in August, but exports of the ethanol co-product distillers grains (DDGS) set a new record, according to a post on the Renewable Fuels Association E-xchange Blog.

RFA’s Geoff Cooper quotes new government figures that show exports of denatured and undenatured (non-beverage) ethanol totaled 52.1 million gallons (mg) in August, down from 127.4 mg in July and the lowest monthly total of the year. Still, year-to-date (Jan.-Aug.) ethanol exports stand at 640.7 mg, nearly triple the amount exported during the same period last year. The United States remains on pace to export more than 900 mg in 2011.

Exports of denatured ethanol totaled 43.3 million gallons in August, with Canada receiving 26.4 million gallons. The United Kingdom (10.5 mg) and the Netherlands (5.1 mg) were other top destinations. Notably, Brazil and the United Arab Emirates, which have been leading markets for ethanol exports in 2011, did not import any U.S. product in August.

While ethanol shipments swooned in August, distillers grains (DDGS) exports hit their highest level of the year. DDGS exports for the month totaled 829,489 metric tons (mt), up 29% from July. Mexico was the leading destination for U.S. DDGS exports, receiving 196,685 mt (24% of total shipments). China was second with 151,204 mt. This marks the highest level of exports to China since December 2010. Canada, Japan, ad Ireland rounded out the top five DDGS export customers in August. Year-to-date DDGS exports stand at 5.25 million mt, and the industry is on pace to ship nearly 8 million mt in 2011.

Read more from the E-xchange Blog.

More corn stocks than expected showed up in the latest report out from USDA on Friday, which was a pleasant surprise for the ethanol industry.

Despite the fact that corn stocks are reported to be 34% lower than a year ago, it was expected to be much worse, even just a few weeks prior to the Friday Grain Stocks report. Earlier this year, USDA was predicting corn stocks would finish the year at just 675 million bushels, less than a three-week supply. But as of September 1, stocks instead totaled 1.13 billion bushels, with disappearance over the summer months indicated at 600 million less bushels than last year.

The immediate effect of the report was lower prices and a little more breathing room for the industries that rely on corn, like ethanol. “Pushing corn stocks back above one billion bushels is important for the psyche of the market,” said Renewable Fuels Association Vice President Geoff Cooper. “Having more corn available should somewhat ease supply concerns brought on by poor growing conditions this year and provide more of a buffer until farmers complete the harvest of this year’s crop.”

With corn prices higher this summer, livestock producers may have been using more distillers grains (DDGS), the by-product of ethanol production. When the amount of corn used for ethanol feed co-products is combined with feed and residual demand, total feed demand becomes 6.35 billion bushels, or 47 percent of expected use in 2011/12.

USDA Agricultural Research Service (ARS) scientists are studying a new yeast that could help make cellulosic ethanol production less expensive and a commercial enzyme that could reduce overall costs linked with producing ethanol from grain.

Molecular biologist Zonglin Lewis Liu with ARS’ National Center for Agricultural Utilization Research in Peoria found a biorefinery yeast that successfully ferments plant sugars from cornstalks, wheat straw, and other rough, fibrous, harvest-time leftovers into cellulosic ethanol. According to Liu, the yeast overcomes some of the troublesome compounds in these materials that are created during dilute acid pre-treatment of the crop leftover. The compounds tend to damage yeast cell walls and membranes, disrupt yeast genetic material such as DNA and RNA, and interfere with yeast enzymes’ fermentation abilities, ultimately reducing potential cellulosic ethanol yields.

In research that began in 2003, Liu and his colleagues have worked with dozens of strains of S. cerevisiae, a yeast species already used to make ethanol from plant starch to speed up the microbe’s natural adaptation to the hostile environment created by the inhibitors.

Meanwhile, other research being done at the ARS Eastern Regional Research Center in Pennsylvania is looking at a commercial enzyme that helps extract water from an ethanol byproduct used to make dried distillers grains with solubles (DDGS). This could significantly reduce the amount of electricity, natural gas, energy and water needed for production of grain ethanol and its marketable byproducts.

The study was conducted at Center Ethanol Company in Sauget, Ill., a commercial facility that produces 54 million gallons of ethanol and 172,000 tons of DDGS every year from corn. In the study, the scientists added one pound of an experimental dewatering enzyme for each 1,000 pounds of corn. The enzyme was supplied by Genencor, a major developer and manufacturer of industrial enzymes that is now part of DuPont Industrial Biosciences. After the grain had been fermented into ethanol, the researchers transferred the leftover slurry of corn solids and water, called “stillage,” into a centrifuge, where much of the water was extracted.
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With the latest USDA forecast showing tighter grain supplies, the House Agriculture Subcommittee on Livestock, Dairy, and Poultry is holding a hearing Wednesday on the concerns of livestock and poultry producers about feed availability and ethanol is likely to be a target for blame.

In advance of the hearing, officials with Growth Energy have sent a letter to the committee leadership urging them to remember that the ethanol industry produces animal feed in the form of distillers grains (DDGs). “More than one-third of all grain used in the production of ethanol is returned as a nutritious distillers’ grain, which is 25 percent cheaper than corn and can displace a greater amount of corn in feed rations, ultimately saving livestock producers’ input costs,” wrote Growth Energy CEO Tom Buis and president Jim Nussle in the letter to sub committee chairman Rep. Thomas Rooney (R-FL) and ranking member Dennis Cardoza (D-CA).

Growth Energy noted that there are many factors that are contributing to tighter grain supplies and higher prices, but stressed that the productivity of American agriculture is capable of meeting all demands for feed, food and fuel. “Consider this, despite the worst weather conditions in recent history, from cold spring rains to searing summer droughts followed by early autumn floods, our nation’s farmers are expected to deliver a near-record harvest of corn,” they wrote. Corn production this year is now forecast to be 12.5 billion bushels, just slightly more than last year and the third largest crop on record.

Scheduled to testify at the hearing on Wednesday at 1:30 eastern are representatives from the beef, dairy, pork, and poultry industries.

POET had announced that they are now selling antibiotic-free dried distillers grains (DDGS) with solubles. Today, they sell more than 4 million tons of Dakota Gold DDGS to a variety of feed markets. On occasion, fermentation can be disrupted due to things such as a bacterial infections, and an antimicrobial agent can be used to control the contamination.

Over the last few years, POET has developed and tested a new process that eliminates the need for antibiotics to control fermentation disruptions. The testing was done with participation of egg-farming customers and support from the United Egg Producers (UEP).

“POET partnered with UEP in a recently completed study showing that adding DDGS to layer diets can dramatically reduce ammonia emissions from the farm,” said Chad Gregory, Senior Vice President at United Egg Producers. “Their antibiotic-free process is another example that demonstrates POET’s commitment to animal agriculture.”

Mark Giesemann, Ph.D., Director of Technical Services at POET Nutrition added, “Since it was introduced more than 15 years ago, Dakota Gold has built a reputation for consistency and quality. “We had to ensure that any adjustments in our process didn’t compromise that reputation. After a few years of testing and development, we’ve found that the DDGS from the antibiotic-free process are of the highest quality.”

A new way to remove fiber from corn has been discovered by a professor from Mississippi State University (MSU). He calls his process Elusieve and has filed for a patent. The process was invented by Dr. Radhakrishnan Srinivasan of the MSU Department of Agricultural and Biological Engineering with some help from University of Illinois professor Dr. Vijay Singh who believe the process will improve both ethanol production efficiency as well as dried distillers grains (DDGS).

“Corn has mainly starch, fiber and protein. We are removing the fiber, so the starch is increased in concentration. Therefore, you can produce more ethanol,” Srinivasan said in an interview with Mississippi Business Journal.

Srinivasan explains that pigs and chickens cannot digest fiber well. By removing the fiber from its feed, which consists primarily of DDGS, ground corn flour and soybean meal, the energy content of the feed is improved and reduces the need for expensive ingredients such as fat and enzymes. He believes the Elusieve process will be adopted by feed mills to separate fiber downstream of the bins where the feed is stored.

Today, there is one pilot plant using the Elusieve technology at MSU and its using a combination of sieving and air classification, called elutriation, to separate out the fiber. From there, the feed is sieved into four sizes and air is blown through the three biggest to carry away the fiber. Ultimately this process increases protein of feeds like DDGS and also increases starch content.

Other researchers are working on technologies to remove fiber from corn but Srinivasan said his is less expensive and less complicated. His has already received the patent for DDGS via Elusieve.

Despite flooding of farm land and delayed planting in many areas, USDA is forecasting a record corn crop for this year.

The World Agricultural Supply and Demand Estimate for May represents USDA’s initial assessment of U.S. and world crop supply and demand prospects. The report projects corn production for 2011/12 “at a record 13.5 billion bushels, up 1.1 billion from 2010/11 as a 4.0-million-acre increase in intended plantings and a recovery from last year’s weather-reduced yields boost expected output. The 2011/12 corn yield is projected at 158.7 bushels per acre, 3.0 bushels below the 1990-2010 trend reflecting the slow pace of planting progress through early May.”

The report increases projected corn use for ethanol by 50 million bushels “reflecting slow expected growth in gasoline consumption and continued export demand for ethanol in the coming year.” Ethanol exports set another record in March, as 84 million gallons of product (denatured and undenatured, non-beverage) were shipped to destinations around the world, according to the latest data from the USDA Foreign Agricultural Service. Through the first three months of the year, the U.S. has exported 201 million gallons of ethanol, equivalent to half of the amount exported in all of 2010 and almost twice the amount exported in 2009. Year-to-date exports have been equivalent to about 6% of total U.S. production.

Renewable Fuels Association Vice President of Research and Analysis Geoff Cooper says that export markets present real demand opportunities that the ethanol industry will continue to explore. “Artificially constrained markets in the U.S. and fears of instability in the policies that impact domestic ethanol production and use are forcing ethanol producers to seek other markets,” he said.

March was also a strong month for exports of the ethanol by-product distillers grains. Shipments totaled 686,098 metric tons, up 11% from February, but down 2% from March 2010 levels.

The livestock feed generated as a by-product of ethanol production is enough to make 50 billion quarter-pound hamburgers each year, according to a new report from the Renewable Fuels Association.

According to the report, America’s ethanol producers supplied nearly 35 million metric tons (mmt) of livestock feed in the 2009/2010 marketing year, which is greater than the total amount of grain consumed by all of the beef cattle in the nation’s feedlots. For the current 2010/2011 marketing year, feed production from the ethanol industry is projected at 39 mmt.

According to RFA, that amount is equivalent to the 4th largest corn crop in the world, enough feed to produce 50 billion quarter-pound hamburgers – seven patties for each person on the planet – or enough to produce one chicken breast for every American every day for a year

Read the RFA report “Fueling a Nation; Feeding the World.”