Ethanol Co-Product Use in U. S. Cattle Feeding
Ethanol Co-Product Use in U. S. Cattle Feeding

Author: Kenneth H. Mathews

Publisher: DIANE Publishing

Published: 2010

Total Pages: 14

ISBN-13: 1437921744

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The byproducts of making ethanol, sweeteners, syrups, and oils were considered less valuable than the primary products. But the increased livestock-feed market for such byproducts has switched that perception to one of the ethanol industry making grain-based ¿co-products (CP)¿ that have market value separate from the primary products. CP such as dried distiller¿s grains, corn gluten feed, corn gluten meal, corn oil, and brewer¿s grains have become economically viable components, along with traditional ingred., in feed rations. The CP have limitations, such as variable moisture content, product avail., nutrient excesses or deficiencies, and nutrient variability. These limitations affect how they must be handled and stored and how much they cost. Illus.

Impact of Ethanol Expansion on the Cattle Feeding Industry
Impact of Ethanol Expansion on the Cattle Feeding Industry

Author: Erin Daley

Publisher:

Published: 2007

Total Pages:

ISBN-13:

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The U.S. has a history of producing surplus corn, but the current and projected growth in ethanol production combined with strong feed and export demand is causing an overall increase in corn utilization. Although livestock feeders are projected to remain the largest users of corn, corn utilization can be reduced if ethanol co-products are used to replace a portion of corn in finishing rations. The objective of this study was to determine the economic trade-offs for cattle feeders when facing higher corn prices and increasing supplies of ethanol co-products. A stochastic partial budget model was used to determine the impact on the cost of gain when ethanol co-products are substituted into rations at varying inclusion rates. The model was built for all four major cattle feeding states: Texas, Nebraska, Kansas, and Colorado. Ration scenarios were developed for each state, based on the research results of feedlot nutrition and personal communication with feedlot operators. The various scenarios were simulated to determine the impacts of changing corn prices, corn processing costs, cattle performance, and feeding and transportation costs for Wet Distiller's Grains with Solubles (WDGS) on the key output variable, cost of gain. The model results indicated when 15 percent WDGS (on a dry matter basis) replaces a portion of corn and protein supplement, the simulated cost of gain is lower than the base ration scenario when the feedlot is located within 200 miles of ethanol production. When feedlots are located more than 200 miles from an ethanol plant, Dried Distiller's Grains with Solubles (DDGS) can be fed to lower the cost of gain; therefore, ethanol co-products can be fed to help offset potential increases in corn prices. The partial budget model is a useful tool for livestock, corn, and ethanol producers who are attempting to determine the impacts of ethanol expansion on corn price and utilization. Policy makers can also benefit from the model analysis as they face decisions in the future regarding ethanol and farm policy alternatives.

Market Issues and Prospects for U. S. Distillers' Grains Supply, Use, and Price Relationships
Market Issues and Prospects for U. S. Distillers' Grains Supply, Use, and Price Relationships

Author: Linwood A. Hoffman

Publisher: DIANE Publishing

Published: 2011-04

Total Pages: 37

ISBN-13: 1437981062

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Growth in corn dry-mill ethanol production has surged in the past several years, simultaneously creating a co-product distillers' grains (DDGS). Many in the U.S. feed industry were concerned about the size of this new feed source and whether it could be used entirely by the feed industry, but they also worried about the price discovery process for the product. Provides a transparent methodology to estimate U.S. supply and consumption of DDGS. Potential domestic and export use of U.S. DDGS exceeds current production and is likely to exceed future production as ethanol production continues to grow. Identifies the DDGS price discovery process along with the price relationships of distillers' grains, corn, and soybean meal. Illus. A print on demand report.

Economic Impact of Ethanol Production on U.S. Livestock Sector
Economic Impact of Ethanol Production on U.S. Livestock Sector

Author: Yapo Genevier N'Guessan

Publisher:

Published: 2007

Total Pages: 191

ISBN-13:

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The production of corn-based ethanol in the U.S. has increased from 1,630 million gallons in 2000 to 4,855 million gallons in 2006, representing a 198% growth over the period considered. This growth is favored by the availability of more efficient technologies in the production process of ethanol and is sustained by the high prices of ethanol in the market. The industry is also supported by a favorable public policy, expressed in the form of laws, mandating an increase in the use of ethanol, and also in the form of tax incentives. The tremendous increase in the use of corn for the ethanol industry is made at the expense of the livestock industry that was the traditional destination for much of the U.S. corn grain. As the ethanol industry continues to expand, concerns are raised in regard to its impact as more and more corn is diverted from the livestock sector. This study investigates the economic impact of the ethanol industry on the U.S. livestock sector. Specifically, a shipping cost model is developed to simulate the impact of the ethanol industry on the shipping cost of corn at the national and individual state levels. The dynamics for major livestock producing states are also analyzed at the crop reporting district level. Different scenarios based on assumptions on the availability of corn and the production capacities of the ethanol industry are displayed. Results from the model indicate that nationwide there is a 5 to 22% increase in the shipping cost of corn for the livestock industry due to the ethanol industry, depending on the scenario involved. At the state level, there is an increase in the transportation cost for most of the states, with shipping cost doubling in some cases. Nevertheless, some states benefit from the dynamics created by the development of ethanol plants and are experiencing a reduction in their livestock industry corn transportation cost.

The Economic Impact of the Demand for Ethanol
The Economic Impact of the Demand for Ethanol

Author: Michael K. Evans

Publisher: DIANE Publishing

Published: 1997

Total Pages: 50

ISBN-13: 0788171798

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Ethanol production is the third-largest user of corn, behind only feed & export uses. Ethanol production uses approximately 7% of the nation's corn crop which increases farm income & generates economic activity nationwide. This report is the first comprehensive analysis of the macroeconomic impacts of ethanol production. The conclusions in this report verify the cost-effectiveness of the federal ethanol program. In short, the partial excise tax exemption provided for ethanol blends is a non-inflationary incentive that creates jobs, stimulates tremendous economic activity, & reduces our trade imbalance.

Economic Research on Ethanol Feed-Use Coproducts
Economic Research on Ethanol Feed-Use Coproducts

Author: Elliott J. Dennis

Publisher:

Published: 2023

Total Pages: 0

ISBN-13:

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During the domestic ethanol boom of the mid-2000s to early 2010s, ethanol coproducts grew to play a crucial role in both ethanol plant profitability and livestock feeding rations. Coproducts from ethanol production have risen from providing a single additional revenue stream to diversified value-added product offerings to increase revenue and thus maintain profit margins. The objective of this paper is to provide a comprehensive review of the economic research on feed-use ethanol coproducts. Existing research finds that traditional feed use ethanol coproducts, consisting largely of distillers' grains products, positively contribute to the livestock feeding industry, especially in their ability to offset the impacts on the grain markets brought on by increased ethanol production. However, much of the research covered appeared during the ethanol boom of the first decade of the 2000s. The market has continued to evolve introducing de-oiled products, corn oil, and high protein distillers has left many current economic questions in the distillers' grains industry unexplored. Very little work has been conducted on non-feed-use products. The physical market has moved well beyond the current academic understanding of market products and structure. Based on this, we provide suggestions for future economic research for value-added distiller grains, government regulation, and different commodities and locations.

Ethanol Expansion in the United States
Ethanol Expansion in the United States

Author: Paul C. Westcott

Publisher: DIANE Publishing

Published: 2010

Total Pages: 20

ISBN-13: 143792171X

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A large expansion in ethanol production is underway in the United States. Cellulosic sources of feedstocks for ethanol production hold some promise for the future, but the primary feedstock in the United States currently is corn. Market adjustments to this increased demand extend well beyond the corn sector to supply and demand for othercrops, such as soybeans and cotton, as well as to the livestock industries. USDA¿s long-term projections, augmented by farmers¿ planting intentions for 2007, are used to illustrate anticipated changes in the agricultural sector. Graphs.