April 6, 2007

US expects jump in DDGS output for 2007

US distillers dried grains with solubles (DDGS) production is expected to triple this year compared with the output in 2003/04, according to the National Corn Growers Association.

NCGA Ethanol Committee chairman Bruce Noel said there has been no oversupply of DDGS contrary to popular market expectations, due to strong demand especially from domestic livestock producers for animal feed.

Despite concerns by some economists and policymakers that rising corn prices fuelled by increased ethanol production would affect feed availability for livestock producers, NCGA has expressed optimism that domestic corn production would be sufficient to meet both ethanol and feed demand.