Circling New Opportunities

by Katie Schroeder (Ethanol Producer Magazine) Ethanol Producer Magazine speaks with pet food industry consultants and representatives of the U.S. Grains Council to learn more about the challenges, benefits and opportunities in the growing aquaculture and pet food markets.

With the rise of technology that enables corn ethanol plants to improve the fiber and protein content of their distillers coproducts, the ethanol industry is looking for outlets for these higher-value outputs. Two industries that have been emerging as premier destinations for these enhanced coproducts are the pet food and aquaculture markets.

Kent Cooper and Lisa Schole, co-owners of Evolve Consulting, explain the challenges of entering the pet food industry, the benefits of supplying it and key information producers should know before pursuing it. Evolve Consulting does ingredient and product development for the pet food industry.

As ethanol plants look to diversify their product streams, pet food appears to be a great fit for some of the distillers coproducts many producers are now making. However, entering any new market comes with its own unique challenges and requirements for entry, and the pet food industry is no exception.

The play comes with more scrutiny than supplying livestock feed due to more stringent regulatory requirements, high consumer expectations and media attention.

Plant-based proteins and sustainability are selling points that could help change negative perceptions about corn-derived pet food.

Because ethanol plants are not consistent across the board in how their process works and what enzymes, yeasts, cleaners and other elements are used in their process, it can be more complicated to get into pet food because every producer’s coproducts have slightly different makeups.

Schole explains that in order to start conversations about selling to the pet food industry, producers need to have detailed information on the makeup of their high protein coproduct, at a bare minimum including protein, moisture, ash content, fiber and amino acid content. These numbers also need to be average values that the producer can meet consistently on a typical production day.

For those serious about entering the industry, she recommends sending out the potential ingredients for certain types of testing, such as checking to make sure there are no residual chemicals or processing agents left, and testing for the palatability and digestibility of the ingredient, will help ethanol producers give the pet food industry assurances that adding the ingredient will be safe.

Schole also says that producers should be prepared to have their plant audited by potential buyers.

If a producer is able to get into the ingredient deck, they are in for the long-term. The pet food industry is growing steadily, five percent year over year, and if a producer is able to get in, they will be able to grow with it.

Aquaculture Opportunities
Ronnie Tan, regional aquaculture consultant for the U.S. Grains Council, and Caleb Wurth, regional director for Southeast Asia and Oceania, outline the state of the aquaculture markets around the globe and explain what it takes to pursue these opportunities. Tan explains that the ethanol industry is consistently able to provide three “high value meals” including DDGS, high protein coproduct and corn fermented protein.

The opportunity for ethanol plant products in the aquaculture industry is high due to consumers wanting sustainability from aquaculture and the rise of input costs, Tan explains.

The three species within aquaculture that have a high demand for feed include shrimp, salmon and tilapia. Tan and Wurth explain that the demand for shrimp is centred in Asia and Latin America reaching 7 million metric tons.

Corn fermented protein products have great potential as an ingredient for both shrimp and salmon. Currently, the feed for both utilize fish meal, corn gluten meal and various plant meals.

Ethanol producers may be able to sell both DDGS and corn fermented protein products into this market.

The challenges producers face on entering the aquaculture market include a lack of data on fish resistance to mycotoxins as well as a general lack of research on distillers grains coproducts in aquaculture feed, poor past experience, filet discoloration and high variability.

However, Tan and Wurth also outline the strengths these coproducts bring to the aquaculture market, including the protein components they can contribute, available phosphorous, yeast and beta-glucans, xantophyll and more. Producers that want to participate in the aquaculture market globally will need a certificate of analysis at point of export, Tan explains. READ MORE