THE NEW PARADIAM OF DISTILLERS GRAINS WITH ITS … · the grain distilling industry. ... STARCH, db 5.1 7.4 LIPID, db 11.4 11.8 NDF, ... this responsibility from the inbound corn

Distillers Grains Technology Council

www.distillersgrains.org

THE NEW PARADIAM OF DISTILLERS

GRAINS WITH ITS MYTHS AND REALITIES

CHARLIE STAFF

EXECUTIVE DIRECTOR/CEO

DISTILLERS GRAINS TECHNOLOGY COUNCIL

Presentation: Fertilizer & Pesticide Conference

Oklahoma City, Oklahoma

June 22, 2010

Presentation Overview

•DGTC Association & Activities

•Ethanol & DDG Production

•DDG Composition & Definitions

•Handling, Transporting & Storage

•Uses & Benefits In Animal Feeds

•Currant Industry Challenges




DISTIILLERS GRAINS TECHNOLOGY COUNCIL

ACTIVITIES

• PROMOTE DISTILLERS GRAINS

- NATIONAL ANIMAL SCIENCE MEETING

- WORLD DAIRY EXPO

- GRADUATE STUDENT SCHOLARSHIPS

• INFORMATION DISTRIBUTION

- DISTILLERS GRAINS BROCHURES

- ANNUAL SYMPOSIUM

- SPEAKER ON DISTILLERS GRAINS

• DISTILLERS GRAIN DATABASE

- 50+ YEARS FEEDING STUDIES

- WEB SITE: WWW.DISTILLERSGRAINS.ORG

• FULL MEMBER BOARD MEETINGS



“ETHANOL & FEED”



ETHANOL INDUSTRY GRAIN UTILIZATION

•2010 Production Estimate Corn- 13.4 Bil Bu.

•Ethanol Usage Estimate- Corn- 4.6 Bil Bu (34%)

•2010 Production Estimate Sorghum- 383 Mil Bu.

•Ethanol Usage Sorghum- 140 Mil Bu (37%)

•Therefore 3% of Fuel Ethanol From Sorghum

•Over 98% of Ethanol Now From GrainUSDA May 13, 2010 Estimates





STATUS GRAIN FUEL ETHANOL

PLANTS

OPERATIONAL NOT OPERATING ON HOLD CANCELED

179 23 37 17

http://dtnethanolcenter.com/index.cfm?show=478.mid=48





PRODUCTS

DRY MILL DISTILLERY

CORN – 56LB BUSHEL

PRODUCTS APPROX. AMT.(LBS)

ETHANOL 18 (2.72gal)

CARB. DIOXIDE 16

DDGS 17

TERMINOLOGY CONFUSION WITH

1. CORN GLUTEN FEED

2. CORN GLUTEN MEAL

3. BREWERS GRAINS

4. CORN Flour



Distillers Grains

Technology

GRAIN DISTILLERY

PRODUCTS

27.4 - DISTILLERS DRIED SOLUBLES*

27.5 - DISTILLERS DRIED GRAINS*

27.6 - DISTILLERS DRIED GRAINS WITH SOLUBLES*

27.7 - CONDENSED DISTILLERS SOLUBLES*

27.8 - DISTILLERS WET GRAINS*

BARLEY RYE

CEREALS SORGHUM

MAIZE WHEAT*Predominate Feedstock

27.6 DISTILLERS DRIED GRAINS

WITH SOLUBLES is the product

obtained after the removal of ethyl

alcohol by distillation from the yeast

fermentation of a grain or a grain

mixture by condensing and drying at

least 3/4 of the solids of the resultant

whole stillage by methods employed in

the grain distilling industry. The

predominating grain shall be declared as

the first word in the name.

HOW MUCH DDGS WAS

PRODUCEDYEAR ETHANOL

(GAL)

DRY MILL

(%)

DDGS

(TONS)

2006 4,900,000,000 79 12,194,000

2007 6,500,000,000 84 16,845,000

2008 9,200,000,000 89 26,574,000

2009 10,600,000,000 90 30,051,000

INCREASE 3,477,000

Equivalent if dried13.1%

DDG PRODUCTION

GROWTH (ESTIMATED)

DDGS EXPORTS

2008 2009 %

CHANGE

MEXICO 993,714 1,195,145 20.3

CANADA 670,554 603,280 -10.0

CHINA 5,583 347,593 6125.9

TOTAL ALL

COUNTRIES

3,886,727 4,560,653 17.3

% OF TOTAL DDGS

PRODUCED

18.7 15.1

COMPONENT, DRY

BASIS

CORN GRAIN (a) CORN DDGS CORN CDS (d) CORN

HP-DDGS (c)

DRY MATTER 89.0 87.0 31.0 94.1

CRUDE PROTEIN 8.5 28.5 20.3 53.4

CRUDE FAT 3.8 10.5 10.5 3.5

CRUDE FIBER 2.2 9.1 1.7 7.3

PHOSPHORUS, TOTAL

0.28 0.77 1.5 0.32

SODIUM 0.02 0.20 0.31 0.02

LYSINE, TOTAL

DIGESTIBILITY %

0.26

81%

0.75

70%

0.91

-

-

73%

METHIONINE

DIGESTIBILITY %

0.18

91%

0.51

87%

0.60

-

-

85%

ME (KCAL/KG) 3350(b) 2770 (b) 2836 2605(a) Data from N?RC (1994)(b) Data Bregendahl (2009) (8)(c) Applegate (2009) (9)(d) Dairyone (2008) (10)

CORN TYPICAL COMPOSIYION DISTILLERS GRAINS









“PLANT DISTILLERS GRAINS

STORAGE”











“STORAGE OF WET

DISTILLERS”





Industry Recommended

Analytical Methods



Moisture/Loss on Drying

NFTA 2.2.2.5 Lab Dry Matter (105 ºC / 3 hr)

Crude Protein aAOAC 990.03 Protein (Crude) in Animal Feed - Combustion

aAOAC 2001.11 Protein (Crude) in Animal Feed and Pet Food

(Copper Catalyst)

Crude Fat

AOAC 945.16 Oil in Cereal Adjuncts (Petroleum Ether)

Crude Fiber

AOAC 978.10 Fiber (Crude) in Animal Feed and Pet Food (F.G.

Crucible) aMethods are statistically similar and either is acceptable for use on

DDGS

DDGS RECOMMENDED ANALYTICAL

METHODS

DISTILLERS GRAINS & ETHANOL

ARE CO-PRODUCTS

• 100% FROM DRY MILL DISTILLERIES

• DDGS: 77% CORN 13% SORGHUM

• DDGS: RETURN 21% BACK TO FARM

• DISPLACES ADDITIONAL CORN & SOYMEAL

- CATTLE/DAIRY: SOYHULLS, CORN

STOCKS, GRASS, ETC.

• DDGS: 70 – 90% CORN VALUE

• CORN DISPLACEMENT VALUE $600,000,000



DISTILLERS GRAINS INDUSTRYContinued Growth Greater Utilization

• Global Economic Recovery And Higher Oil Prices

• Ethanol Industry At or Above Profit Margins

• Most Bankrupt Plants Restarted, Mega Large Plants

• Back-end DDG Corn Oil Removal Growing

• Greater DDG Utilization; Domestic and Export

• Challenges From Localized Corn Mycotoxins



DDGS CONSUMERS

BRING ON THE DISTILLERS




% U.S. DDGS USAGE

2010 ESTIMATE

Distillers Grains

Technology

DAIRY/BEEF ADVANTAGES

• HIGH PROTEIN & HIGH ENERGY

• DISPLACES CORN & SOYMEAL

• HIGH BYPASS PROTEIN

• LOWER ACIDOSIS POTENTIAL

• 20-25% YEAST PROTEIN

• HIGH DIGESTIBLE FIBER

Distillers Grains

Technology

DAIRY/BEEF RATION LEVELS

MAXIMUM %

DAIRY CATTLE 20

BEEF CATTLE 35-45

COW/CALF (PASTURE) 10-15

CALVES 20

*High Forage-Lower Phosphorus-Max. Fat 6%

Distillers Grains

Technology

SWINE

RECOMMEDED LEVELS

MAXIMUM %

GROWER/FINISHER 20-30

GESTATION 40

LACTATION 30

NURSERY 5*Add Lysine-Remove Tricalcium Phosphate

DISTILLERS GRAINS

• LONG HISTORY OF SUCCESSFUL ANIMAL FEEDING

STUDIES

• THE FASTEST GROWING FEED INGREDIENT

• ALL NATURAL FERMENTED FEED INGREDIENT

• THE ONY FEED INGREDIENT CONTAINING YEAST

CELLS



Distillers Grains

Technology

COMPOSITION CORN &

SORGHUM DDGS

COMPOSITION, % CORN DDGS SORGHUM DDGS

DRY MATTER 92.2 91.4

CRUDE PROTEIN, db 29.2 31.4

STARCH, db 5.1 7.4

LIPID, db 11.4 11.8

NDF, db 51.3 51.1

ASH, db 2 1.8

ADF(a) 25.5 28.4

NDF (a) 42.3 41.3

Lodge, S.L. et al, J. of Am. Sc. P 41 (1997)

(a) NEB Dairy Report MP 74-A (1999-2000)

Industry Challenges

Impacting Distillers Grains

Utilization

ISSUES

• Antibotics- Why A “Hot Button”

• Product Consistancy

• Product Flowability

• Sulfur Content

• Mycotoxins

• E. Coli 0157:H7

A Sight Seen To Often 2009





“As a licensed feed manufacturing plant of

distillers grains, we routinely test for toxins,

whether, don, aflatoxin, or zerelanone. Our

obligation and responsibility in providing a

product suitable for consumption is sampling,

testing and informing our customers the quality of

our product. 2009 certainly has helped redefine

this responsibility from the inbound corn to the

distillers grains.”

Jeff Goetz, Abengoa Bioenergy at May 12, 2010, Distillers

Grains Symposium, Indianapolis, In

SULFUR CONTENT

• Sulfur Content Limits Cattle Ration Amount

• >0.4-0.5% Causes Animal Health Problems

• Dr. Zhang’s Presentation Indicates Plant Issue

• Need Better pH Control And Cleaning Method

• Reducing or Eliminating Sulfur Compounds

• Nutritionists Can Partially Reduce Problem

PRODUCT FLOWABILITY

• A Major Issue That’s Less Of A Problem

Now

• Most Plants Are Aware To Cool And Hold

• Railcars Built To Improve Flowability

• Major Customers Special Unloading

Equipment

• Recent Research Information Helpful

PRODUCT CONSISTENCY

• Every Animal Requires Certain Feed Requirements

• Formulating Requires Education And Experience

• Distillers With Different Nutrients A Problem

• Varying Solubles And Particle Size A Problem

• Over And Under Formulating Costly For Feeder

Antibiotics A Media Issue

• Antibiotics Used Over 15 Years In

Fermentation

• Virginiamycin FDA/CVM No Objection Letter

Less then 0.5 ppm in DDGS

• Current Legislative Efforts To Remove All

Antibiotics From Animal Feed- WHY

• FDA/CVM Presentations This Morning

• Magazines And Blogs “DDGS Antibiotics

Problem”

DOES DDG CAUSE E. COLI 0157:H7

• MANY FEEDIN STUDIES: KSU, UN, USDA

• ALL CATTLE SOME LEVEL; MANURE & HIDE

• DDG + STEAM FLAKED CORN - INCREASED

• TESTING RESULTS VARY & INCONCLUSIVE

• RESEARCH CONTINUING; VACCINE AVAILABLE



NEED RENEWABE ENERGY

SOURCES

• FARMERS PRODUCED EXCESS GRAIN

• ETHANOL FROM GRAIN

• CO-PRODUCT – DISTILLERS GRAINS

• USA PRODUCED (PROFITS RETAINED,

SECURITY, ETC.)

• NEED ENERGY FROM NON-FOOD BIOMASS



DISTILLERS GRAINS –

PART OF SOLUTION

• 16-20MM TONS FOR ANIMAL FEED

• PROTEIN CONCENTRATE THAT REDUCES

RATION COSTS

• GROWING DEMAND FROM FARMERS

• DISTILLERY INCOME REDUCES COSTS

• FARMER - DISTILLERY- FARMER



DISTILLERS GRAINS –

UNTOLD STORY• ETHANOL CO-PRODUCT THAT

REPLACES GRAIN

• CO-PRODUCT THAT REDUCES FEED

COSTS

• THEREFORE – MAINTAINS LOWER

FOOD COSTS

• CO-PRODUCT – THAT COULD

BECOME FOOD INGREDIENT



DISTILLERS GRAINS INDUSTRYGrowing Despite Adversity

• Global Economic Recession And Depressed Oil Prices

• Ethanol Industry At or Below Profit Margins

• Some Ethanol Plants Slowed, Delayed Start-Up or Bankrupt

• Causing Distillers Grains Availability Disruptions

• Disgruntled And Unfair Media And Economic Reports



DISTILLERS GRAINS SYMPOSIUM

WESTIN CROWN CENTERKANSAS CITY, MISSOURI

MAY 11 & 12, 2011

EXHIBITING & SPONSORSHIP OPPORTUNITIES

AVAILALBEDistillers Grains

Technology Council

Documents

THE NEW PARADIAM OF DISTILLERS GRAINS WITH ITS … · the grain distilling industry. ... STARCH, db 5.1 7.4 LIPID, db 11.4 11.8 NDF, ... this responsibility from the inbound corn