Ethanol boom lowers feed costs for animal feed makers
In short
Rising supplies of DDGS from grain-based ethanol production are helping feed makers cut costs. Poultry, dairy and aquaculture feed manufacturers are using it as a cheaper alternative to soybean meal.
What the reporting says
Rising supplies of DDGS from grain-based ethanol production are helping poultry, dairy and aquaculture feed manufacturers cut costs. The by-product is emerging as a cheaper alternative to soybean meal. The shift could affect domestic soybean meal demand as feed makers adjust ingredient use.
Why it matters
Rising DDGS supplies from grain-based ethanol production are giving poultry, dairy and aquaculture feed makers a lower-cost input than soybean meal. The change could influence ingredient buying patterns across the feed sector and pressure domestic soybean meal demand.