1983 views
4 comments
Cereal price pressure predicted during EU biofuel boom
Dr Ioannis Mavromichalis
If the European Union follows the example set by the
United States in mass ethanol production, then we can only expect the biofuel
industry to become a major consumer of local and imported cereals competing
heavily with the animal industry.
If the European Union follows the example set by the United States in mass
ethanol production, then we can only expect the biofuel
industry to become a major consumer of local and imported cereals competing
heavily with the animal industry.
Unless a new breakthrough in
cereal crop
production is achieved before the boom of biofuel in the European Union,
cereal prices will eventually go up.
Nevertheless, there is always a bright side to each story and, in this case
it regards the by-products of ethanol production. These by-products, termed
ethanol distiller's grains, include spent grains, bran, and soluble fractions -
that is, the grain without most of its starch content. As such, they are quite
high in crude protein (around 30% for wheat distillers' grains) and very low in
starch (7-12%) and subsequently energy (8.5 MJ NE per kg) compared to whole
cereals.
Thus, it is rather difficult to completely replace cereals (rich energy
sources) with ethanol distiller's grains. In addition, along with protein and
fiber, certain undesirable cereal components are also concentrated in ethanol
distillers' grains, and these include mycotoxins.
Moreover, from experiences gained in the United States, nutritional value of
such by-products may vary considerably among production sites and quite often
even among batches from the same factory. Thus, these facts further reduce the
potential inclusion rate of ethanol distillers' grains in a typical feed for
pigs.
In my opinion, we can expect pig feeds to include between 10 and 30% of
ethanol distillers' grains, depending on animal age and product quality. Cereals
and other energy sources (tapioca, fats and oils) will continue to be used in
pig feeds in considerable quantities, whereas a down pressure on the price of
soya beans and its by-products (major protein sources) should also be expected.
Unless producers of ethanol decide to keep their by-products for internal
combustion (electricity), then it is most likely that the balance between the
price of cereals and ethanol distillers' grains will result in lower feed
cost.
4 comments
To comment, login here
Or register to be able to comment.