USDA: Ethanol Creates both Feed and Fuel

Washington, D.C. – Nearly 40 percent of the corn used for ethanol goes directly back into the feed supply as a high-protein animal feed, according to a recently released report by the U.S. Department of Agriculture’s Economic Research Service. Growth Energy, the nation’s leading voice for ethanol, noted that the feed from ethanol production saves money for animal producers because it averages 25 percent cheaper than corn used as feed and can displace a greater amount of corn because of its nutritional value.

According to the report, “Findings demonstrate that, in aggregate (including major types of livestock/poultry), a metric ton of DDGS can replace, on average, 1.22 metric tons of feed consisting of corn and soybean meal in the United States.” You can read the full ERS report here.

“This report reiterates what we have been saying for years: ethanol produces both fuel and food, in the form of high protein animal feed known as distillers grains. The data proves that food-versus-fuel is a myth. This valuable feed displaces a greater volume of field corn and soybeans, is less expensive to the producer and is much more nutritious for the animal,” said Growth Energy CEO Tom Buis.

“Distillers grains are not just a byproduct, they are a co-product. This report should persuade our critics to stop scapegoating ethanol and take a hard look at the true value of our product as a competitive fuel and feed source.”