Distiller's grain set to ride ethanol coattails

Reuters
Tue Nov 3, 2009 4:48pm EST
By Michael Hirtzer - Analysis

CHICAGO (Reuters) - Demand for distiller's grain, a byproduct of distilling corn into ethanol, will continue to grow domestically and abroad as livestock producers turn to the feed as a cheaper alternative to corn, analysts said.

And with the ethanol industry gearing up for a better year in 2010 after the financial crisis of 2008 triggered by corn prices hitting record highs, more distiller's grain should be making its way into the U.S. livestock sector.

"If we are going to ramp up (ethanol production), we have to find a home for DDGS (dried distiller's grain with soluables)," said Darrel Good, extension economist at the University of Illinois.

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