World Grain - April 2009 - 58

BIOFUELS QUARTERLY: BIOFUELS NEWS REVIEW

Marketing of distiller's grains vital to U.S. ethanol
SAN ANTONIO, TEXAS, U.S. - Experts
told participants of the Renewable Fuels
Association's 14th Annual National Ethanol Conference in San Antonio, Texas, U.S.
that the current economic situation is causing people to realize the importance of distiller's dried grains with solubles (DDGS) to
the profitability and sustainability of the U.S.
ethanol industry.
Charlie Staff, executive director of the
Distillers Grains Technology Council, said it
is vital for the survival of the ethanol industry to get the most profitability possible out
of marketing DDGS.
"DDGS is the best part of the fuel ethanol
industry currently. If it wasn't for distiller's
grains, given where we are right now with
profit margins, there wouldn't be an ethanol
industry," said Staff.
Despite the ethanol slowdown, the output of DDGS continues to increase, making
marketing efforts of the U.S. Grains Council
pertinent to the industry, according to Scott
Richman, senior vice-president for Informa
Economics. He said DDGS production is
reaching "ever higher levels." He said 26
million tons of U.S. DDGS were produced in
2008 and 29 million tons, possibly 30 million
tons, will be generated this year. This is representative of a 10% growth in DDGS output
each year. Richman said the increase is making exports of DDGS "more and more" important for the U.S ethanol industry and corn
growers as the Midwest becomes "saturated"

with the ethanol co-product.
"Exports have increased significantly as
production has reached new heights. The
tremendous increase is due to the efforts of
the U.S. Grains Council, which has substantial programs going on in different countries
around the world. Mexico and Canada have
grown into huge markets for the co-product

(1,188,766 tonnes and 771,797 tonnes in
2008, respectively)," said Richman. "A little
more unusual is the success in Asia, where
the U.S. Grains Council has focused a great
deal of its efforts. With this comes challenges with the availability of containers. This
keeps DDGS marketers and the U.S. Grains
Council on their toes."

YENAR
ROLL EXPERIENCE

POET begins expansion of
ethanol plant
SIOUX FALLS, SOUTH DAKOTA, U.S. -
POET Biorefining - Laddonia, Missouri,
U.S., is undergoing a $2 million expansion
that will increase the plant's capacity and
provide a larger market for locally produced
corn (maize).
Work has already begun on installation of
a sixth fermenter at the plant. It is expected
to be completed in April 2009.
POET Biorefining - Laddonia was built in
September 2006 with a capacity of 45 million
gallons per year (MGPY), but it actually is producing almost 52 MGPY, according to General
Manager Robin Venn. The expansion will add
another 5 million gallons of capacity.
The additional capacity will allow the
plant to purchase another $3 million worth
of corn per year at today's prices, Venn said,
boosting the local economy even as the
country is facing difficult financial times.

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World Grain - April 2009

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