October 21, 2008

Expanded US ethanol production to increase '09 DDGS exports


Continued expansion of the US ethanol industry in 2009 would bring about a substantial increase in the supply of distiller's dried grains with solubles (DDGS) the US Grains Council said.

According to Ken Hobbie, USGC president ethanol production increased in 2008 by approximately 3 billion gallons to 9.3 billion gallons compared to last year. Production next year is expected to reach 11.9 billion gallons.

Hobbie was speaking at the USGC's International Distillers Grains Conference (IDGC) in Indianapolis, Indianna.

Roughly one-third of the grain weight that goes into ethanol production comes out as DDGS.

This translated to 22.8 million tonnes of DDGS for the 2007/08 marketing year, nearly a 50 percent increase from the 2006/2007 marketing year, according to Senior Vice President of Informa Economics Scott Richman.

For the 2008/2009 marketing year, which just began on Oct. 1, the industry would likely experience an additional 50-percent increase in the availability of DDGS, reaching 31.3 million tonnes, he added.

Richman expects more DDGS to be pushed into export markets. The US Grains Council's efforts promoting US DDGS and opening several new markets across the globe is helping the US ethanol industry in a big way. As production increases, the Council will have more opportunities to expand markets, he said.

Hobbie said the USGC made DDGS the top priority in 2006 and since then DDGS exports have exceeded 2 million tonnes annually.

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