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.

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 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.

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.

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.

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.

“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.

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.

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.

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.

Data from these trials were used to calibrate an existing economic model of ethanol production. The resulting estimates indicated that using the enzymes to dewater the stillage would reduce overall facility water use by 10 percent, reduce electricity consumption by 2.4 percent and reduce natural gas consumption by 12 percent. The model indicated that these reductions would in turn reduce the emission of greenhouse gases equivalent to approximately 8,000 tons of carbon dioxide per year from a mid-sized ethanol facility producing around 50 million gallons of grain ethanol annually.

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.

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.”

“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.

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.

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.”

As part of the ethanol production process, several co-products are produced including distillers grains. For the week ending April 8, ethanol producers consumed 13.62 million bushels of corn daily to produce ethanol and 101,346 metric tons of livestock feed of which 89,484 metric tons were distillers grains (DDGs). Ethanol producers were also supplying 3.88 million pounds of corn oil which can be utilized in the feed or biodiesel markets.

The U.S. ethanol exports and DDG market report was also released and Renewable Fuel Association (RFA) VP of Research and Analysis, Geoff Cooper analyzed the information.

U.S. ethanol exports totaled 59.7 million gallons in February, up 4 percent from January. Exports of undenatured (non-beverage) ethanol increased to 21.8 million gallons in February, nearly double the amount shipped in January. Meanwhile denatured ethanol exports were 37.9 million gallons, down from 45.4 million in January. Because this ethanol is not blended with gasoline prior to exportation, it does not qualify for the Volumetric Ethanol Excise Tax Credit (VEETC), also known as the blender’s credit. Through the first two months of the year, ethanol exports stand at 116.9 million gallons. If the current pace is maintained all year, exports for 2011 could total more than 700 million gallons (compared to 400 million in 2010).

The number one exporter of U.S. denatured ethanol was Canada at nearly 15 million gallons followed by the United Arab Emirates (UAE), United Kingdom, and Brazil. In regards to undenatured ethanol, more than 11 million gallons went to the Netherlands in February. The second- and third-leading destinations for undenatured ethanol were the OPEC nations of UAE and Nigeria.

Distillers grains exports for February totaled 619,744 metric tons, down 13 percent compared to January, but slightly above February 2010 totals. China was the leading importer of U.S. DDGs with 110,976 metric tons. Exports to China were down 14 percent from January and less than half of the amount shipped as recently as October 2010. According to Cooper, erosion of exports to China is likely the result of the nation’s ongoing anti-dumping investigation against U.S. DDGs. Mexico was the second-leading destination, receiving 102,450 metric tons in February. This was less than half of the 223,000 metric tons shipped to Mexico in January. Canada, Spain and Vietnam rounded out the top five.

The company says its corn oil is different than other corn-ethanol plants’ corn oil due to the low-energy BPX fermentation process (cold cook) they use. This process eliminates heat from the process and when the corn oil is captured at the back-end of the process, it is a higher quality product with a lower amount of free fatty acids.

“The corn kernel is an amazing thing,” said POET CEO Jeff Broin. “As we continue research into more and more co-products, our ability to displace foreign oil continues to grow. By selling Voilà to biodiesel producers, we’re providing the feedstock for even more renewable fuel production.”

Scott Weishaar, POET Vice President of Commercial Development added, “Not only is it high-quality corn oil, it is a consistent product, which is important to biodiesel producers. Our customers have been very pleased with Voilà.”

In addition to producing biodiesel, corn oil can also be used as a component in feed production. In the future, POET plans on introducing a new branded distillers product that incorporates its corn oil as an ingredient.

This story from Ethanol Producer Magazine says the National Agriculture Statistics Service will be taking comments until March 28, 2011 with plans to release the results by next January:

NASS expects to contact 70,000 various livestock and poultry operations in early January to gain information related to their distillers co-products use during 2011. The survey will attempt to determine the rate of use of distillers co-products and various aspects contributing to their decision to use the feed, including nutrient values, product consistency, product form, product testing, inclusion rates, economics, shelf life, storage and transportation. The survey has been named the Distiller’s By-Products Survey in order to encompass all by-products, but Olbert said that focus could be narrowed to concentrate only on distillers grains. “That’s another reason why we need some input from the public and from stakeholders on what kinds of information they need from a survey,” he added.

You can submit comments to the USDA through email to ombofficer@nass.usda.gov. Reference docket number 0535-0247 in the subject line of the email.

The first step in the investigation involves helping DDGS producers register as interested parties, a process that must be completed no later than Jan. 17 in Beijing (which is Jan. 16 in the United States) and is further complicated by the need to translate all registrations into Chinese. Nearly 70 companies have already registered with USGC.

Registering as an interested party is an important step, since registered parties can qualify for lower, negotiated tariffs if there is a finding in the investigation. In contrast, unregistered companies could face the highest tariffs of all. Once the registration process is complete, Chinese authorities will begin a fact-finding process that will include investigations of specific company practices. To reach a final ruling against the U.S. trade, China must show evidence that DDGS has been dumped in the Chinese market at prices below what other buyers pay and that Chinese interests have been injured by the dumping. Provisional tariffs on DDGS could begin as early as June 2011. China is expected to make a decision on its findings by Dec. 28, 2011, though that deadline can be extended by six months if needed.

U.S. shipments of DDGS to China skyrocketed from almost nothing three years ago to more than 2 million metric tons in 2010 and may reach as much as 3-5 million tons in 2011.

So, although the U.S. Grains Council (USGC) felt that this was the normal progression in trade in a market that is growing exponentially, it didn’t completely come as a surprise when the China’s Ministry of Commerce has launched an anti-dumping probe into the ethanol co-product DDGS. This according to Rebecca Bratter, the USGC director of trade development during a press call to give an update on the status of the situation, which was brought to you on DomesticFuel when the story first broke.

The case was initiated on December 28, 2010 and will take at least a year before a decision is made. In the meantime, the interested parties were only given 20 days to register their interest in the case.

“We understand the consequences. We know what’s at stake for registering or not registering,” said Bratter during the call. “We know this is just the first step in what will be a long process which will include both an injury investigation and on a separate track, a dumping investigation.”

Bratter continued to say that they would be communicating an industry response back to the Chinese government that could be as soon as today.

“We consider China a very important market, a very strategic market and we place a very high level of importance on our trade relationship with China,” Bratter stressed.

During the investigation, the Chinese government has the authority to impose higher duties on the exports. Today, there is a 5 percent duty on DDGS but this could climb as high as 50 percent or higher, which would have a major negative impact on trade.

During the course of the investigation, Bratter said, “The Grains Council intends to operate as normal in China.”

“The U.S. Grains Council has a 25 year history of market development and capacity building programs in China and values the U.S./China market and trade relationship,” said USGC President and CEO Tom Dorr in a statement today. “China’s investigation of U.S. DDGS imports is surprising and could be disruptive to trade. China’s unusual market and supply volatility over the last two years has resulted in new global trade flows. As trade flows change, it should perhaps not be surprising there would be an adjustment period in response to unprecedented demand.”

It was only a few weeks ago that U.S. corn growers were in China on a USGC-sponsored trade mission to promote both corn and DDGS for livestock feed in that country. According to a post about the mission on the USGC blog The Grain Board, “Many of the feed companies that the delegation met with are increasing their DDGS use in their livestock feed rations. They stated they would continue to import, dependent on price. DDGS is easily imported into China, yet it is a feed ingredient that requires a “per plant registration” which is difficult to deal with at the port.”

China is the number one market for DDGS and is expected to import nearly three million metric tons this year, up more than 500 percent compared to a year ago. It is estimated that China produces about 3.5 million tons of DDGS domestically each year.

According to a statement from the Chinese Ministry, they initially plan to look for any evidence of dumping of DDGS, both with and without solubles, between July 2009 and June 2010, but may go back as far as 2007. The investigation is expected to take 12 to 18 months to complete.

It’s called the Load Toad™ and it was designed to allow rail cars to be packed more densely by forcing DDGS to the sides of the rail car, a process that is usually done by hand with a shovel. By distributing the DDGS load more evenly and efficiently, POET plants have been able to pack 3%-5% more DDGS into each car.

“The Load Toad not only allows us to put more DDGS in a railcar, which increases our production efficiency, but this device also allows the commodities team to more safely load a railcar,” said Dave Hudak, general manager at POET Biorefining – Alexandria (Ind.). “We no longer have to shovel any product nor stand on the top of the car to load it. The potential for a back injury has been eliminated.”

Commodities Assistant Ryan Schroeder from POET Biorefining – Leipsic in Ohio developed the first prototype of the Load Toad as a solution to a common loading problem that led to cone-shaped pileups in the rail cars. These pileups dramatically lowered efficiency in each rail car and created a great deal physical work for staff. “It felt good knowing that not just our plant would benefit, but the commodities people at all the POET plants would benefit,” Schroeder said. The Load Toad is currently being used at POET plants, but the company is exploring opportunities to market the technology to other ethanol producers in the future.

Here’s a video of the Load Toad in action from the POET website.

A new edition of “Feeding Corn Milling Co-Products to Feedlot Cattle,” a popular publication that provides feedlot operators, animal nutritionists and others with the latest research and sound recommendations on feeding corn co-products like distillers grains to cattle, is now available from the Nebraska Corn Board and University of Nebraska-Lincoln.

“Feeding Corn Milling Co-Products to Feedlot Cattle” is a 36-page printed publication that is available free by request to the Nebraska Corn Board. Electronic copies are also available for download at NebraskaCorn.org under the publications section, or at the university’s beef.unl.edu website.

More information here from the Nebraska Corn Board.

Dr. Phillip Smith, a nutritionist with Tyson Foods, spoke at the recent Export Exchange event sponsored by the Renewable Fuels Association (RFA) and the U.S. Grains Council about the value of DDGS in the poultry sector.

“It’s a very good ingredient for us,” said Dr. Smith. “We’ve used it successfully and the reason we would use a co-product like that is to save money in the diet. It gives us a good cost value, nutrient value, it flows and handles and the birds perform well on it.” He says it can be use as much as 15 percent of the diet for birds, or even more in breeder diets.

He recommended to international buyers who were at the Export Exchange that they try DDGS and work with it. “If it saves money, there’s that incentive, that risk is worth taking,” he said.

Listen to or download an interview with Dr. Phillip Smith here: Phillip Smith Interview

South Dakota State University Extension swine specialist Dr. Robert Thaler talked about the use of DDGS in hogs and how it helps supply phosphorus in the diet. “Phosphorus supplementation to the diet is very expensive,” he said. “The cool thing is that the phosphorus in DDGS is highly available. So, if you’re replacing dical or monocal with phosphorus coming from DDGS, you’re going to have less phosphorus in the manure, it will probably be cheaper and plus, you’re going to have less environmental problems.”

Dr. Thaler says exporters want quality assurances when it comes to DDGS and they are also wondering how high they can go including DDGS in the diet. “A lot of them are at 5-10 percent inclusion rate in swine diets. Here in the United States, on the growth/finish side, we’re probably 20-30,” he explained. “We just have to get them to realize that there’s nothing magical we’re doing to make that 20-30 percent work.”

Listen to Dr. Thaler’s interview here: Robert Thaler Interview

“For every three bushels of corn that comes in, you get a bushel of DDG out, and what we sell that DDG for helps us to create a revenue stream so we can buy more corn,” said Walt Wendland with Golden Grain Energy of Mason, Iowa who serves as secretary on the RFA board.

2010 exports of DDGs are expected to exceed last year’s record 5.65 million tons. “One of the surprising things is that the amount of distillers grains that we’re going to be exporting for the first time is going to exceed the amount of soybean meal,” Wendland says. “We’re recognized now as being a very reliable supplier of DDG around the world.”

Listen to or download an interview with Walt Wendland here: Walt Wendland Interview

The Export Exchange included nearly 500 attendees from 33 countries and the proceedings were translated into 7 languages. Ray Defenbaugh of Big River Resources West Burlington ethanol plant in Iowa says he has been coming to the event since it was started by USGC a few years ago. “It’s just an opportunity for networking and there’s a huge demand in other countries for DDGs,” said Defenbaugh. “If you come here and go away without having met somebody that could help you in transportation or sales from another country, than you’ve not really tried very hard.”

Defenbaugh is chairman of the DDG committee for RFA and is very pleased with the efforts they are making to increase exports of the ethanol co-product.

Listen to or download an interview with Defenbaugh here: Ray Defenbaugh Interview

Export Exchange 2010 Photo Album

In his remarks, Dinneen said, “As a nation, failure to continue the growth of our domestic ethanol industry will not only limit our ability to reduce our dependence on foreign oil, but constrain our ability to provide a high quality livestock feed to our domestic livestock industry and world trade partners. Make no mistake, the success of the distillers grains market is directly tied the fate of American ethanol production.”

Dinneen drew parallels between the markets for fuel ethanol and for distillers grains underscoring the need for expanded trading relationships. “You have heard talk of the ethanol blend wall that limits the amount of ethanol that can be used. In much of the same manner, we are rapidly approaching a feed wall in the U.S. Due to current limits in dietary rations, the livestock feed market will likely be saturated with distillers grains when the industry is producing between 35 and 45 million metric tons. As we spoke about before, we are rapidly approaching the lower end of the “feed wall” estimates.”

You can listen to Bob’s speech here: Bob Dinneen Speech

Export Exchange 2010 Photo Album

I asked Rick what he thought about the conference and its importance to the industry. Rick says it’s critically important and that the DDGS export market is one of the bright spots in the industry. He also says that like with any new product there has been a lot of wait and see from potential buyers and users.

You can listen to the interview with Rick here: Rick Tolman Interview

Export Exchange 2010 Photo Album

We really do have a very large and diverse crowd attending the conference this year. There are at least 7 translators working to provide international guests with simultaneous audio of the general session presentations. Registered attendees will have a chance to go online and access the presentations afterward too.

Export Exchange 2010 Photo Album

Dr. Thompson started off his presentation talking about demand dynamics looking to the future. He presented some amazing numbers when it comes to population growth. Between now and 2050 there will be 2.6 billion more people. That’s twice the population of China and most of that growth will come in low income countries. There are a lot of statistics in his presentation that you will find very interesting.

You can listen to Dr. Thompson’s presentation here: Dr. Robert Thompson Presentation

Export Exchange 2010 Photo Album

Tom says that the opportunity to trade across borders helps to improve lives. That opportunity needs to be done in a transparent way to ensure food security. This Export Exchange is a forum to show that that food security is possible due to the use of new technologies and trade as a means to provide proper nutrition and safe food and economic opportunity for all.

You can listen to Tom’s remarks here: Tom Dorr Remarks

Export Exchange 2010 Photo Album