January 9, 2008

US grain association advises against additional distillers grains standards

The National Grain and Feed Association (NGFA) advised the USDA against additional standards for the trading of distillers grains for biofuels.

NGFA said that existing regulatory and industry frameworks are sufficient for approving feed ingredients. NGFA's own Grain Trade Rules, Feed Trade Rules and Arbitration System already provide parameters for the trading of distillers grains and other products from biofuels production.

Michael F. Malecha, NGFA biofuels committee chairman, said that the existing government and industry frameworks are working well to ensure effective trading of these products.

Malecha is particularly not in favor of any additional involvement by GIPSA as this could stifle innovation, reduce the number and quality of products available in the marketplace and ultimately limit the opportunities for either buyer or seller to capture optimal value for these products.

It is important to allow US buyers and sellers of distillers grain products the opportunity to agree contractually to given transactions, the NGFA reiterated.