While ethanol production consumes the grain's starch, the protein, minerals, fat and fiber are concentrated during the production process to produce a highly valued and nutritious livestock feed. For dry mill ethanol refineries, which make up the majority of production, most feed is dried and sold as Distillers Dried Grains with Solubles (DDGS). Approximately 20-25% of the feed is shipped wet locally, reducing energy input and transportation costs and providing another market for producers.

A modern dry-mill ethanol refinery produces approximately 2.8 gallons of ethanol and more than 17 pounds of distillers grains from a bushel of corn. In 2007, ethanol biorefineries produced approximately 14.6 million metric tons of distillers grains.

Historic Distillers Grains Production from U.S. Ethanol Biorefineries:

Year	Metric Tons
1999	2.3 million
2000	2.7 million
2001	3.1 million
2002	3.6 million
2003	5.8 million
2004	7.3 million
2005	9.0 million
2006	12.0 million
2007	14.6 million

In addition to expanding consumption among traditional markets, new markets and new uses (fertilizer, pet litter, packaging materials, food, etc) are being considered.

Exports also represent an opportunity for new market growth.  The largest importers currently include Ireland, the United Kingdom, Europe, Mexico and Canada.

"The use of wet distillers grains has been tremendously positive with regard to the average daily gain of our high stress cattle.  The greatest benefit has been the ability to get them on the growing ration in half the time as previously." Greg Gleue, Neosha Valley Feeders, LeRoy, Kansas

"Research conducted at several universities as well as the University of Minnesota has shown that corn DDGS contributes several valuable nutrients in poultry diets including energy, amino acids and phosphorous. In Minnesota, DDGS is used regularly in turkey diets as an economical feed ingredient and high quality products are in demand." Dr. Sally Noll, Professor of Poultry (Turkeys) Science, Department of Animal Science, University of Minnesota

New Testing Guidelines:New guidelines for the analysis of distillers dried grains with solubles (DDGS) has been released.  The report is the result of a year-long study funded jointly by RFA, the National Corn Growers Association, and the American Feed Industry Association (AFIA).  Specifically,it offers recommended test methods for determining the moisture, crude protein, crude fat, and crude fiber content of DDGS. These factors are often viewed as the key determinants of the market value of the product. Historically, the lack of “standard” empirical DDGS test methods has led to results that vary significantly from laboratory to laboratory, causing product uncertainty for producers, marketers, nutritionists, regulatory bodies and—most importantly—distillers grains customers.  RFA believes the widespread voluntary adoption of recommended test methods will reduce market confusion and add more structure to the DDGS marketplace.  Click here to view the report.

Useful links:

Feed Associations

• American Feed Industry Association
  www.afia.org
• National Grain and Feed Association
  www.ngfa.org

Publications

• AFIA Educational Materials
• Distillers Grains Testing Guidelines (RFA, NCGA, AFIA)
• NCGA's CORN Distillers Grains Brochure
• RFA's Comments on GIPSA's Proposed ANOPR, "The Role of USDA in Differentiating Grain Inputs for Ethanol Production and Standardizing Testing of the Co-Products of Ethanol Production"

Resources

• AAFCO
  www.aafco.org
• Distillers Grains Technology Council
  www.distillersgrains.org
• FDA's Center for Veterinary Medicine
  www.fda.gov/cvm/default.htm
• Grain Inspection, Packers and Stockyards Administration (GIPSA) www.gipsa.usda.gov
• Iowa Department of Agriculture and Land Stewardship
  Office of Renewable Fuels and Co-Products
  www.distillersgrains.com
• National Corn Growers Association
  www.ncga.com/ethanol/co_products/
• National Grain Sorghum Producers
  www.sorghumgrowers.com
• University of Minnesota DDGS
  www.ddgs.umn.edu
• U.S. Grains Council
  www.grains.org