Page 14 - MWC 4-23-20s

Distillers’ grains disappear as

The Midwest Cattleman · April 23, 2020 · P14

ethanol plants slow, halt production

By Laurie Bedord
Making a living raising cat- the day,” says John Robinson,
tle isn’t as simple as just buy- vice president of membership
ing a herd and turning it out and communications for the
on pasture. Cattle require a National Cattlemen's Beef
specific diet to maintain prop- Association. “Unfortunately,
er nutrition and weight gain. the impact on cattle produc-
For the past 10 years, Jon ers and feedlots that have for-
Auten has used the co-prod- mulated distillers’ grains into
uct from ethanol production as their feed rations is a side ef-
a source of energy and protein fect. They are faced with a dif-
in his cattle ration. Using wet ficult situation because they
distillers’ grains in his cow- are going to have to find a new
calf operation offers myriad source of feed and reformulate
advantages. rations. That’s really tough on
“Feeding a wet by-product producers and feeders, espe-
provides protein, particularly cially for those who are used
bypass protein or rumen-un- to sourcing locally.”
degradable protein (RUP), Across the U.S., there are
which is helpful for younger, (e.g., stalks/straw instead of plants use more than 700 mil- 202 ethanol plants that have
rapidly growing cattle,” says expensive alfalfa hay).” lion bushels of corn each year 17.1 billion gallons of total
Galen Erickson, cattle indus- Currently the No. 2 produc- and produce more than 6 mil- capacity, according to RFA. In
try professor of animal sci- er of ethanol in the U.S., Ne- lion tons of distillers’ grains. a typical year, eight to 10 of
ences, University of Nebras- braska has grown from one “We estimate feeding wet those may go offline.
ka-Lincoln. “It provides more ethanol plant in 1985 to 25 or modified distillers’ makes Since March 1, 2020, 69
energy than corn. It helps today. Combined, they have producers between $30 and plants, with an annual produc-
with ration mixing (e.g., con- the capacity to produce about $50 more per finished ani- tion capacity of nearly 6 billion
ditioning) and allows for low- 2.3 billion gallons of ethanol. mal,” Erickson says. “This is gallons, have been fully idled.
er-quality roughages to be fed Spread across the state, these due to better performance Another 64 facilities have re-
and cheaper cost of gain even duced output anywhere from
when priced the same as corn 10% to 50%, which takes an-
How Journagan Bulls Help on a dry basis.” other 1.7 billion gallons out of
But as ethanol plants shut the supply.
You Achieve Your Goals... down or reduce output in the “I’ve been involved in the
state because of economics ethanol industry for about 15
• Selection and storage, Auten is forced years, and I've never seen any-
– Journagan Ranch is the Largest Producer of Hereford to consider alternatives for his thing close to this,” says Geoff
Cattle in Missouri Angus herd that he estimates Cooper, CEO of RFA. “It's re-
– Journagan bulls are selected on fescue and raised on fescue. could push his feed costs up ally a devastating time for the
– Journagan bulls are selected for balanced traits including 25% or more. industry.”
phenotype, genotype and EPD’s. “Once I’m not able to get In a normal year – when
– Every Journagan Hereford bull has been calved un-assisted. wet, or even modified wet, every plant is running at nor-
– All bulls will be ultra sounded and semen checked. distillers’ grains, I’m going to mal rates – these facilities
have to buy high-quality hay make about 44 million tons
• Heterosis to replace the protein needs of distillers’ grains annual-
– Add 20-40 lbs. at weaning. of my cattle, which comes at a ly. With nearly 66% of produc-
– Complement your cowherd with a Hereford bull from premium price,” says the Ayr, tion either idled or reduced,
Journagan Ranch. Nebraska, producer. that adds up to a significant
So far this year, seven amount of feed lost.
• Performance plants have idled production
– Steer feedlot and three have slowed out- Losing one-third of feed
performance and put across Nebraska, accord- In Kimball, Minneso-
carcass data is available. ta, Schiefelbein Farms was
ing to the Renewable Fuels thrown for a loop when it was
• Solid Reputation and Guarantee Association (RFA). notified that one-third of its
– Journagan Ranch has been “A 2015 University of Ne- feed would no longer be avail-
in business for 38 years. braska study showed that the able – effective immediately.
ethanol industry in Nebraska Bushmills Ethanol, where
is a $5-billion-per-year indus-
JOURNAGAN RANCH try, so the financial impact the family sells its corn at
around 75% of its value in re-
Rt. 1, Box 85G on our state is huge as these turn for wet cakes, is reduc-
Missouri State Mountain Grove, MO 65711 plants idle and cut produc- ing ethanol production and
University tion,” says Roger Berry, ad-
Marty Lueck, Manager ministrator, Nebraska Etha- will only be producing dried
(417) 948-2669 nol Board. distillers’ grains for the time
(417) 838-1482 (Cell) “We’re hearing that ethanol being. A cooperative made up
For the Profit Minded Cattleman!
plants are shutting down by continued on page 25