Study: Waiving RFS Could Increase Feed Costs for Livestock, Poultry Producers
(Renewable Fuels Association) Waiving the Renewable Fuel Standard (RFS) in 2013 could actually result in higher net feeding costs for livestock and poultry producers, according to a new analysis conducted by Cardno-ENTRIX and commissioned by the Renewable Fuels Association (RFA). The study found that if a waiver of the RFS did reduce biofuel output, trivial corn price reductions would be partially or fully offset by increased prices for other feed ingredients like distillers grains (DDGS) and soybean meal.
Distillers grains, corn gluten feed and corn gluten meal are co-products of ethanol production that are fed to livestock and poultry across the country. Every bushel of corn processed by an ethanol plant produces 2.7-2.8 gallons of ethanol and approximately 16-17 pounds of animal feed. The U.S. ethanol industry produced some 40-42 million tons of animal feed in 2011, including 37-38 million tons of distillers grains. Additionally, increased production of biodiesel from soybean oil has facilitated growth in soybean meal production in recent years. Soybean meal is a valuable source of protein for livestock and poultry worldwide; it is produced as a co-product of soybean oil. Thus, increased demand for soybean oil drives increased production of, and lower prices for, soybean meal. Obviously, if a waiver of the RFS reduced production of ethanol and biodiesel, it would also reduce production of these important animal feed co-products. READ MORE and MORE (Kearney Hub) and MORE (TripleCrisis.com) and MORE (Ethanol Producer Magazine) and MORE (Global Meat News) Download study