August 15, 2007

Ethanol to create DDG glut

The ethanol boom in Eastern Corn Belt states could create a glut of dried distillers' grains (DDG).

While DDGs are considered a better alternative animal feed in the wake of rising corn prices, 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.

Hansen said the glut could result to a supply/demand imbalance as the ethanol sector continues to rise.