DDG Glut May Be On The Way

08/10/2007 1:15:28 PM

By Todd Neeley DTN Staff Reporter

ST. PAUL, Minn. (DTN) -- Ethanol industry growth in Eastern Corn Belt states could eventually pose a problem: A glut of dried distillers grains.

While DDGs have gained international popularity as an animal feed, states such as Indiana, Illinois, Ohio and Michigan just don't have enough animals to keep up with supply, said Jim Hansen, chief operating officer of Poet Nutrition based in Sioux Falls, S.D.

DDGs are the remaining co-product of ethanol production. The grain consists mostly of starches and proteins and is considered to be a viable ruminant feed substitute for corn.

"This could create a supply/demand imbalance," Hansen said during the American Coalition for Ethanol conference in St. Paul, Minn., Wednesday. "We cannot slow the ethanol industry down because we are not feeding the product," he added.

DTN, August 13, 2007