Ethanol Co-Product Hitting “Feed Wall”

DomesticFuel.com
Posted by Cindy Zimmerman – September 3rd, 2010

We hear a lot about the blend wall for ethanol in the United States market, but there’s also a wall that the ethanol co-product Dried Distillers Grains (DDGS) in hitting with the livestock industry.

“We’ve already run into a feed wall,” says Renewable Fuels Association (RFA) President and CEO Bob Dinneen. “While domestic markets for DDGS continue to expand, quite frankly we’ve grown that market pretty rapidly over the last several years and the opportunity for continued expansion domestically are fewer and farther between.”

So expanding export markets for DDGS is important for the U.S. ethanol industry, and that opportunity is substantial. “We are exporting more and more DDGS these days,” Dinneen says. “But more needs to be done to get suppliers and buyers together.”

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