Biofuel co-products as livestock feed - Opportunities and challenges

An outlook on world biofuel production and its implications for the animal feed industry 11stalks, wheat straw), algae, jatropha, pennycress, municipalsolid waste, forestry residues and other materials.KNOWLEDGE GAPS AND FUTURE RESEARCHNEEDSWhile animal feed co-products from biofuels productionhave played an important role in the global livestock andpoultry industries for many years, several critical knowledgeand information gaps remain. First, as highlighted byTaheripour, Hertel and Tyner (2010b), many studies examiningthe impact of biofuels demand on commodity pricesand livestock and poultry markets do not properly accountfor the sustained price discount of co-product feeds versustraditional feedstuffs. There appears to be a general lack ofunderstanding of how pricing trends and fluctuations affectco-product feeding decisions and dietary inclusion levels.The dynamic pricing relationship among animal feed coproductsfrom biofuels processes and traditional feedstuffs,and the impacts of pricing relationships on substitutionrates, is an area for further future research.Additionally, understanding of the impact of biofuelfeed co-products on livestock and poultry markets has beengreatly hindered by a lack of public data and informationon co-product production volumes by type and geography.Government agencies that track and publish public marketdata for traditional feedstuffs and commodities generallydo not provide adequate coverage of co-product feed productionvolumes, types, etc. This is a significant informationgap that, if filled, would enhance the collective understandingof co-product animal feed markets.Finally, little is known about the effect of maize oilextraction on feeding and pricing of DDGS. This again is anarea for future research.CONCLUSIONSRecent years have seen a tremendous increase in the productionof biofuels from agricultural commodities. Growthin biofuel production has been accompanied by increasedoutput of animal feed co-products from common biofuelprocesses. Globally, these feed co-products are growing involume and importance. While the increased use of agriculturalcommodities for biofuels is generally expected tocontribute to slightly higher input costs for certain livestockand poultry feeds, the impacts are expected to be modestand can be mitigated in part by increased substitution ofco-products for traditional feedstuffs. Increased agriculturalproductivity has allowed the global supply of crops availablefor non-biofuel uses to continue to grow over the long term.Growth in the use of agricultural commodities for biofuelsis expected to continue through to 2020, but growth rateswill slow in key producing countries as government-imposedlimits on grain use for biofuels are reached and new nonagriculturalfeedstocks are commercialized.ACKNOWLEDGEMENTSThe authors would to acknowledge Claus Keller, commodityanalyst at F.O. Licht, for providing data on globalfeedstock use for ethanol and biodiesel; and Ann Lewis,analyst for the Renewable Fuels Association, for assistancein researching and preparing this article.BIBLIOGRAPHYAnderson, J., Schingoethe, D., Kalscheur, K. & Hippen, A.2006. Evaluation of dried and wet distillers grains includedat two concentrations in the diets of lactating dairy cows.Journal of Dairy Science, 89: 3133–3142.Arora, S., Wu, M. & Wang, M. 2008. 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