Council Begins Lower-Oil DDGS Education Efforts

The supply of lower-oil distillers dried grains with solubles is increasing.

Published on: Nov 11, 2011

As more U.S. ethanol plants add oil extraction capacity either at the front end or back end of their processes, the supply of lower-oil distillers dried grains with solubles is increasing, and with it, the need to educate foreign DDGS users about its different characteristics.

"The lower oil content means a difference in how this DDGS will perform in livestock rations," explained Sean Callanan, USGC manager of programs. "The Council has spent a lot of resources on building an international market for DDGS. Now we're taking steps to educate people about lower-oil DDGS."

In a first step, Council international directors who administer DDGS programs and international DDGS nutritionist consultants met in Minneapolis last week with ethanol and DDGS industry contacts and leading U.S. livestock nutritionists to discuss lower-oil DDGS.

"For many of the attendees, this was the first they had heard about lower-oil DDGS," said Callanan.

The two-day program began with an exploration of ethanol industry dynamics, including the differing financial successes of plants with and without oil extraction. At one time, DDGS oil content was 10-15% , but as extraction becomes more efficient, oil-content is likely to be much lower.

Nutritionists from the swine, beef, dairy and poultry industries reported that only preliminary data is currently available for feed formulations with lower-oil DDGS, but new testing is already under way. When research results are available beginning next February, the Council will determine its next steps, including possible conference calls or webinars.

"As this newer form of DDGS moves into the marketplace, we want to make sure our customers aren't surprised by the difference in its performance," said Callanan. "We will need to begin re-educating them about what to look for and how to recalibrate feed formulas for different levels of oil in DDGS."