In a letter submitted to the U.S. Department of Agriculture (USDA), the National Corn Growers Association (NCGA) stresses the amount of success U.S. corn growers and ethanol producers have had in developing important coproducts from ethanol and finding markets for them with little government assistance.
When ethanol is fermented, the residual distillers grains make an excellent feed for livestock because of its protein, fat, fiber, vitamins and minerals, according to NCGA Chairman Ken McCauley, who wrote to comment on proposed rulemaking about the agency’s role in distillers grains marketing. In his letter, McCauley cited the strong success the industry has seen in marketing the grains.
“It is important to note that more than 30 million metric tons of U.S.-produced distillers grains have been traded effectively in the last five years with minimal government participation,” McCauley said. “More than 12 million metric tons of distillers grains were produced and sold in 2006/07, up from 8.4 million metric tons in 2005/06. Distillers grains production is expected to top 17 million metric tons in 2007/08.”
Specifically, USDA is considering to what degree the Grain Inspection, Packers and Stockyards Administration (GIPSA) should intensify its involvement in issues related to differentiating grain inputs for ethanol production or the testing and marketing of ethanol co-products. On behalf of NCGA, McCauley said there is no need for this.
“In the case of ethanol input grains and coproducts, it is the opinion of NCGA that ‘the market is working’ and emerging impediments to domestic and international trade are being proactively addressed by industry,” McCauley wrote. “The current market framework for trading distillers grains, which involves minimal government participation, is effective.”