is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist
Higher DDG margins benefit ethanol producers

Higher DDG margins benefit ethanol producers

The increased corn harvest in 2013 brought lower corn prices, lowering the corn input costs for ethanol producers. Those producers are also benefiting from improving margins for dried distillers grains, an important supplement for animal feed that is the major co-product of ethanol production from corn. Sales of dried distillers grains provide a significant portion of the total revenue received by ethanol facilities, underpinning the economic feasibility of ethanol fuel production.

 

Get more news from CSD! Subscribe to CSD Extra and get the latest news right to your inbox!

 

In addition to supplying the domestic agricultural sector, demand for DDGS is growing in foreign markets. During 2013, total DDGS exports reached 9.7 million metric tons, more than double the 4.5 million metric tons of total exports in 2008. China has played a key role in driving this growth, with total DDGS exports to China rising from 1.4 million metric tons in 2011 (18% of total U.S. export volumes), to 2.2 million metric tons in 2012 (29% of total U.S. exports), and 4.5 million metric tons in 2013 (46% of total U.S. exports), according to U.S. Department of Agriculture data.

Read more about the higher DDG margin from the EIA.

 

Other stories you might like:

Max corn yield needs max ears per acre

Crop insurance decision time

Seed treatments reduce early-planting risks

TAGS: Marketing
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish