DDGS:
OVERVIEW AND TRENDS
Kurt A. Rosentrater, Ph.D.
Distillers Grains Technology Council
Iowa State University, Ames, IA USA
OVERVIEW
1.
2.
3.
4.
5.
Motivations
Processes & coproducts
Economics & markets
Evolving processes & new opportunities
Other issues
2
MOTIVATIONS
3
MOTIVATIONS
• Ruminants or monogastrics
Animal
4
MOTIVATIONS
• Ruminants or monogastrics
Other gases
O2
Feed
Water
CO2
Animal
Water vapor
Methane
Feces
Urine
5
DDGS IN THE MARKETS
• As ethanol industry goes, so goes the
supply of coproducts
• Balance = key to sustainability
Livestock
producers
Alcohol
manufacturers
6
PROCESSES
&
COPRODUCTS
7
MANUFACTURING
Dry Grind Process
40 MG/Y = 150 ML/Y
120 MG/Y = 450 ML/Y
8
ETHANOL COPRODUCTS
Condensed Distillers Solubles
Distillers Dried Grains with Solubles
+
Distillers Wet Grains
9
FERMENTATION PRODUCTS
Theoretical Yields
1 kg glucose = 0.51 kg ethanol
+ 0.49 kg carbon dioxide
Practical Yields
90 – 95% of theoretical
+ yeast cell mass
+ secondary products
Anecdotally:
1 kg corn =
1/3 kg ethanol
+ 1/3 kg CO2
+ 1/3 kg DDGS
10
COPRODUCT COMPOSITION
DDGS
Unit
% as fed
% DM
Dry matter
Crude protein
Amino acids
Arginine
% protein
Histidine
% protein
Isoleucine
% protein
Leucine
% protein
Lysine
% protein
Methionine
% protein
Phenylalanine % protein
Threonine
% protein
Tryptophan
% protein
Tyrosine
% protein
Valine
% protein
NDF
% DM
Fat (ether extract) % DM
Ash
% DM
Ca
g/kg DM
P
g/kg DM
K
g/kg DM
Mg
g/kg DM
Na (ppm)
g/kg DM
Zn (ppm)
mg/kg DM
Mn (ppm)
mg/kg DM
Cu (ppm)
mg/kg DM
Fe (ppm)
mg/kg DM
Source: http://www.feedipedia.org/
Avg
89.0
29.5
SD
1.4
1.8
Min
86.6
25.2
Max
91.9
33.5
4.3
2.7
3.8
11.6
3.0
2.0
4.8
3.7
0.8
3.9
5.1
34.2
11.1
5.4
1.6
7.9
10.3
3.3
2.4
62
21
6
123
0.3
0.2
0.3
0.6
0.3
0.2
0.2
0.1
0.1
0.5
0.3
6.8
2.2
1.0
1.6
1.0
1.1
0.4
1.8
16
8
2
41
3.4
2.2
3.2
10.1
2.1
1.7
4.3
3.3
0.6
3.1
4.3
18.3
7.1
3.4
0.2
4.9
7.1
1.9
0.6
43
12
3
70
5.1
3.1
4.3
13.3
3.7
2.7
5.4
4.0
0.9
4.7
5.6
47.4
15.7
7.5
5.5
9.8
12.7
3.9
7.2
105
44
10
239
COPRODUCT COMPOSITION
Dry matter
Crude protein
Amino acids
Arginine
Histidine
Isoleucine
Leucine
Lysine
Methionine
Phenylalanine
Threonine
Tryptophan
Tyrosine
Valine
NDF
Fat (ether extract)
Ash
Ca
P
K
Mg
Na (ppm)
Zn (ppm)
Mn (ppm)
Cu (ppm)
Fe (ppm)
Unit
Condensed Solubles (CDS)
% as fed
32.0
% DM
20.4
% DM
% protein
% protein
% protein
% protein
% protein
% protein
% protein
% protein
% protein
% protein
% protein
% DM
4.2
% DM
17.3
% DM
9.5
% DM
0.11
% DM
1.53
% DM
2.21
% DM
0.67
g/kg DM
2.0
mg/kg DM
61.0
mg/kg DM
24.0
mg/kg DM
5.2
mg/kg DM
76.0
Source: http://www.feedipedia.org/
Thin Stillage
5.0
17.9
DWG
35.0
44.0
3.4
2.4
3.5
12.0
2.6
1.9
4.6
3.2
0.5
4.1
4.4
12.5
9.2
28.8
5.1
6.3
2.6
0.2
4.2
3.9
1.1
1.3
39.0
6.0
3.0
53.0
ECONOMICS
& MARKETS
13
U.S. ETHANOL GROWTH
60000
50000
40
Ethanol Production
35
Corn oil extraction
40000
30
25
30000
20
20000
15
10
Coproducts (t) x 10 6
Coproduct Generation
10000
5
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
0
1982
0
1980
Fuel Ethanol (L) x 10 6
45
Nov. 1, 2016: 214 plants, 15,608 MG/y
RFS: 15,000 MG/y of corn ethanol by 2015
Year
14
MARKETS
Co-products and Products
Dry Mill
Condensed distillers solubles (CDS-syrup)
Corn oil
Distillers dried grains (DDG)
Distillers dried grains with solubles (DDGS)
Modified distillers wet grains (DWG) <65% moisture
Modified distillers wet grains (DWG) 40-64% moisture
Wet Mill
Corn germ meal
Corn gluten feed
Corn gluten meal
Corn oil
Wet corn gluten feed 40-60% moisture
Co-products and Products
Dry Mill
Condensed distillers solubles (CDS-syrup)
Corn oil
Distillers dried grains (DDG)
Distillers dried grains with solubles (DDGS)
Modified distillers wet grains (DWG) <65% moisture
Modified distillers wet grains (DWG) 40-64% moisture
Wet Mill
Corn germ meal
Corn gluten feed
Corn gluten meal
Corn oil
Wet corn gluten feed 40-60% moisture
NASS/USDA MONTHLY CO-PRODUCTS PRODUCTION
Dec 2014
Jan 2014
Feb 2015
172,082
97,380
448,551
1,919,823
1,411,411
503,258
162,626
105,356
438,936
1,862,550
1,341,938
480,134
128,057
96,347
405,025
1,649,534
1,144,177
421,666
75,031
329,431
94,777
44,551
338,077
71,492
321,768
90,617
41,961
313,400
48,546
283,990
80,855
41,020
274,763
May 2015
May 2016
148,757
117,049
418,448
1,861,795
1,368,926
414,956
April 2016
tons
130,324
111,077
374,750
1,717,024
1,264,745
429,972
69,274
348,355
97,139
53,208
323,436
67,530
306,464
84,916
51,455
301,283
63,859
332,975
88,177
50,262
306,424
131,318
121,699
411,467
1,842,182
1,234,315
425,532
Current Feedings Rates in the U.S.
• 1 tonne of DDGS can replace 1.22 tonnes of corn/soybean
meal (or more)
• Estimates may not match current feeding levels
– Prices change
• Potential consumption rates are based on the price of DDGS
not being a barrier to use
Current Feedings Rates in the U.S.
• Beef Cattle:
– Maximum potential inclusion rate: 20-50%
• 2007 recommendations: 22%
• Dairy Cows:
– Maximum potential inclusion rate: 10-30%
• 2007 recommendations: 8%
• Swine:
– Maximum potential inclusion rate: 10-50%,
• 2007 recommendations: 10%
• Poultry (Layers, Broilers, Turkeys):
– Maximum potential inclusion rate: 10-15%
• 2007 recommendations: N/A
DDGS IN THE MARKETS
Based on data provided by Cheryl Anderson, DTN
18
Based on data provided by Cheryl Anderson, DTN
December - 2014
August - 2014
May - 2014
January - 2014
September - 2013
May - 2013
January - 2013
September - 2012
May - 2012
January - 2012
1.4
September - 2011
May - 2011
January - 2011
Value of DDGS Relative to Corn or Soybean Meal
DDGS IN THE MARKETS
1.6
Price Relative to Corn
Price relative to Soybean Meal
1.2
1
0.8
0.6
0.4
0.2
0
19
DDGS IN THE MARKETS
Based on data provided by Cheryl Anderson, DTN
20
DWG IN THE MARKETS
Based on data provided by Cheryl Anderson, DTN
21
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
DDGS (tonnes) x 10
6
DDGS IN THE MARKETS
35
30
Production
Export
25
20
15
10
5
0
Marketing year
Based on Hoffman and Baker (2010) and U.S. Grains Council (2014)
22
DDGS IN THE MARKETS
Based on Hoffman and Baker (2010) and U.S. Grains Council (2014)
23
EVOLVING
PROCESSES &
NEW
OPPORTUNITIES
24
FRACTIONATION
Proteins
Biofuel
Coproducts
Component
Fractionation
Oils
Fibers
25
FRACTIONATION
26
EVOLVING COPRODUCTS
40
35
30
25
2000
20
2006
15
2012
10
5
0
Protein (%)
Fat (%)
Source: Dairy One, 2015
NDF (%)
Starch (%)
Ash (%)
EVOLVING COPRODUCTS
1.2
1
0.8
2000
0.6
2006
2012
0.4
0.2
0
S (%)
P (%)
Source: Dairy One, 2015
Ca (%)
Mg (%)
K (%)
EVOLVING
PROCESSES
• Oil extraction
– New enzymes
– New chemicals
– New treatments
EVOLVING PROCESSES
• Oil extraction from CDS or stillage
– 10-12% down to 5-8% fat (or less)
– BUT: every 1% fat reduction = $3-$6 /ton livestock diet
increase (impact on the livestock producer)
– Jan. 2012: 47% of ethanol plants extracting oil
– Aug. 2014: ~85%
– Nov. 2016: ~94%
Now:
1 kg corn =
1/3 kg ethanol
+ 1/3 kg CO2
+ 1/3 kg DDGS
+ 0.02 kg oil
30
EVOLVING
PROCESSES
• Fiber & protein
separation
– From the DDGS or DDG
DDGS FRACTIONATION
a) Original DDGS; b) big DDGS; c) pan DDGS
Property
Protein
Lipid
Ash
Carbohydrate
ADF
NDF
Big
Mean
31.85 a
8.65 a
4.70 a
54.80 a
11.60 a
34.55 a
St Dev
1.06
0.07
0.01
1.13
0.71
0.49
Original
Mean
33.00 a
7.95 b
4.70 a
54.35 a
12.40 b
37.80 b
St Dev
0.99
0.07
0.01
0.92
0.57
0.14
Pan
Mean
37.25 b
7.00 c
5.00 b
50.75 b
11.45 a
29.15 c
St Dev
0.21
0.01
0.01
0.21
0.07
0.21
32
DDGS FRACTIONATION
DDGS fiber
• Protein: 42% db
• Lipid: 1.7% db
• NDF: 52% db
• Ash: 4.0% db
33
EVOLVING
PROCESSES
• Fiber & protein
separation
– Upstream may be better
EVOLVING COPRODUCTS
• Using coproducts (wet or dry) to grow
other organisms
– Algae
– Single-cell proteins
– Fermentation of DDGS & soybean meal
– Fungal cells for protein
AQUACULTURE
• Tremendous untapped opportunity – 200 MMT/year
• DDGS ~ 1/10 to 1/20 the price of fish meal
1.2
Tilapia
Perch
Trout
FM: 1000 $/tonne
FM: 2000 $/tonne
1.0
DDGS: 100 $/tonne
Yellow Perch
Relative Feed Cost ($/tonne)
Nile Tilapia
0.8
0.6
0.4
0.2
0.0
0
Rainbow Trout
20
40
60
80
100
120
% Fish Meal Replaced
36
OTHER ISSUES
37
YEAST CELLS
How much protein addition?
Probiotic/prebiotic effects?
• Bauerfeind et al. (1944)
– 4 x 109 cells/g dried syrup (CDS)
– ~ 20% of syrup
• Ingeldew (1999)
– DDGS by mass: 3.9%
– 5.3% of the DDGS protein
• Belyea et al. (2004)
– 50% of the DDGS protein
• Han and Liu (2010)
– Up to 20% of the DDGS protein
• Giving away protein in the DDGS
Saccharomyces cerevisiae
1.0E+06
YEAST CELLS
CFU/dry g
1.0E+05
A
1.0E+04
1.0E+03
1.0E+02
1.0E+01
How many residual microbes?
1.0E+00
1.0E+09
CFU/dry g
1.0E+08
0
2
B
4
9
Days
1.0E+07
1.0E+06
1.0E+05
1.0E+04
1.0E+03
1.0E+09
1.0E+08
C
0
2
4
9
4
9
Days
A. Lactic-acid bacteria
B. Aerobic heterotrophs
C. Yeasts and molds
CFU/dry g
1.0E+07
1.0E+06
1.0E+05
1.0E+04
1.0E+03
1.0E+02
1.0E+01
0
2
Days
U.S. DDGS Exports to China Halted
CHINA
July 31, 2014
On Wednesday, July 23, the Chinese import inspection agency, the General Administration of
Quality Supervision, Inspection and Quarantine (AQSIQ), issued a notice requiring all
shipments of U.S. distillers dried grains with solubles (DDGS) destined for China be
accompanied by a test report with an official stamp certifying the shipment is free from the
Syngenta Agrisure Viptera (MIR 162) biotech-enhanced trait. The notice took effect
immediately and brings serious concern to the industry because not only does such
documentation with an official stamp not exist, either does confidence in the testing results of
MIR 162 in DDGS.
In 2013, exports of U.S. DDGS to China alone were estimated at $1.4 billion.
While MIR 162 has been approved in the U.S. since 2010 and has been approved for import
into the European Union (and most other importing countries), regulatory approval in China is
still pending. In the unofficial translation of the notice, AQSIQ references more than 963 lots
of U.S. DDGS imports having tested positive for MIR 162 since December 2013. Evidence of
U.S. DDGS imports being rejected by China started last December after China began testing
for MIR 162.
Concerns about this new requirement also exist because it may affect the implementation of
AQSIQ's Decree 118 for plant-based protein feed products, which includes DDGS. Decree
118 requires U.S. exporters of plant-based feed products to meet the following criteria to pass
customs inspection into China:



Exported product must originate from a registered U.S. facility;
Registered facilities may be subject to audits by AQSIQ officials; and
Exported product must be accompanied by a shipment-by-shipment certificate.
Facility audits were to begin in the very near future and the American Feed Industry
Association has obtained U.S. government funding through the U.S. Department of
Agriculture's Foreign Agricultural Service's (FAS) Emerging Markets Program to assist with
the auditing requirements set forth from AQSIQ. However, with the Chinese market currently
shut down for U.S. DDGS, the fate of the pending audit requirement, and therefore the
completion of the implementation of Decree 118 for plant-based feed products (including
DDGS), is unknown.
Without implementation of Decree 118 for plant-based feed products, exports of U.S. DDGS
to China will not be able to continue even if MIR 162 were to get approved in China or if
China were to lift the new MIR 162 test report requirement for all shipments. AFIA continues
to work with FAS and other industry groups to address these market access constraints for
U.S. DDGS.
FDA
INCLUSION RATES
$
42
FINAL THOUGHTS
• DDGS is critical to
– Ethanol plant profitability
– Livestock producers
– Key to business sustainability
• Need to produce a feed ingredient that
livestock producers desire
– Producing quality DDGS (with low variability)
is what livestock need
FINAL THOUGHTS
THANK YOU
Questions?
Comments?
Kurt Rosentrater
Distillers Grains Technology Council
Iowa State University
(515) 294-4019
[email protected]
45