The US drought-induced price increase of corn is closing US ethanol plants. The plants produce distiller’s dried grains with solubles (DDGS), as a co-product with ethanol. With the closure of these plants DDGS in swine feed has declined.
Jerry Shurson, professor of swine nutrition and management at the University of Minnesota explains, “DDGS has typically been priced at 75 to 85 % of the value of corn, making it a good alternative ingredient to reduce feed costs. Now it is being priced around 100% of the value of corn, making it less attractive.”
Pork Network says that there are indications that some Iowa pork producers, faced with the shut down of their local supplier, have been travelling an extra one hundred miles (~160 km) to find DDGS to supplement their feed.
Source: Pork Network