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 Distillers Grains Technology Council www.distillersgrains.org Presentation Overview •DGTC Association & Activities •Ethanol & DDG Production •DDG Composition & Definitions •Handling, Transporting & Storage •Uses & Benefits In Animal Feeds •Currant Industry Challenges Distillers Grains Technology Council www.distillersgrains.org 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 Distillers Grains Technology Council “ETHANOL & FEED” Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org 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 Grain USDA May 13, 2010 Estimates Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org STATUS GRAIN FUEL ETHANOL PLANTS OPERATIONAL NOT OPERATING ON HOLD CANCELED 179 23 37 17 http://dtnethanolcenter.com/index.cfm?show=478.mid=48 Distillers Grains Technology Council www.distillersgrains.org PRODUCTS DRY MILL DISTILLERY CORN – 56LB BUSHEL PRODUCTS APPROX. AMT.(LBS) ETHANOL 18 (2.72gal) CARB. DIOXIDE 16 DDGS 17 Distillers Grains Technology Council www.distillersgrains.org TERMINOLOGY CONFUSION WITH 1. CORN GLUTEN FEED 2. CORN GLUTEN MEAL 3. BREWERS GRAINS 4. CORN Flour Distillers Grains Technology Council www.distillersgrains.org 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 Distillers Grains Technology 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 PRODUCED YEAR ETHANOL DRY MILL DDGS (GAL) (%) (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 13.1% Equivalent if dried 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 3,886,727 4,560,653 17.3 COUNTRIES % OF TOTAL DDGS 18.7 15.1 PRODUCED CORN TYPICAL COMPOSIYION DISTILLERS GRAINS COMPONENT, DRY CORN GRAIN (a) CORN DDGS CORN CDS (d) CORN BASIS 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 0.26 0.75 0.91 - DIGESTIBILITY % 81% 70% - 73% METHIONINE 0.18 0.51 0.60 - DIGESTIBILITY % 91% 87% - 85% ME (KCAL/KG) (a) Data from N?RC (1994) 3350(b) 2770 (b) 2836 2605 (b) Data Bregendahl (2009) (8) (c) Applegate (2009) (9) (d) Dairyone (2008) (10) Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org “PLANT DISTILLERS GRAINS STORAGE” Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org “STORAGE OF WET DISTILLERS” Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org Distillers Grains Technology Council www.distillersgrains.org Industry Recommended Analytical Methods Distillers Grains Technology Council www.distillersgrains.org DDGS 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 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 Technology Council www.distillersgrains.org DISTILLERS GRAINS INDUSTRY Continued 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 Distillers Grains Technology Council www.distillersgrains.org BRING ON THE DISTILLERS Distillers Grains Technology Council www.distillersgrains.org % U.S. DDGS USAGE 2010 ESTIMATE Distillers Grains Technology Council 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 Technology 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 Council www.distillersgrains.org 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) Distillers Grains Technology 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 Distillers Grains Technology Council www.distillersgrains.org “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 Distillers Grains Technology Council www.distillersgrains.org 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 Distillers Grains Technology Council www.distillersgrains.org NEED RENEWABE ENERGY SOURCES • FARMERS PRODUCED EXCESS GRAIN • ETHANOL FROM GRAIN • CO-PRODUCT – DISTILLERS GRAINS • USA PRODUCED (PROFITS RETAINED, SECURITY,