Grain used for feed production trends upwards

In Germany, UFOP reports that Global production of grains in the 2017/18 marketing year, an estimated 2.1 billion tonnes, is intended for human consumption, but also used as a livestock feed and feedstock in bio-ethanol production. At 44 per cent, the largest part of the grain harvests goes into feeding troughs, trending upward. By contrast, demand for grain for use in transport fuel production increases only slightly, remaining at around 8 per cent for several years, the Inter-national Grain Council (IGC) reports. This means that there is enough grain to meet the growing demand for food, feedstuff and industrial uses.

In the US, bioethanol is mostly made from maize. The process generates Dried Distillers Grains with Solu-bles (DDGS), which is used as a protein feed. One tonne of wheat that is pro-cessed into bioethanol produces on average 295 kg of DDGS with a moisture content of 10 per cent. One tonne of maize yields 309 kg of DDGS. According to Agrarmarkt Informations-Gesellschaft mbH (AMI), increasing grain prices lead to a decrease in processing to biofuels, followed by savings in feed. The high added-value potential in the food markets ensures that grain mostly goes into the production of food when grain prices are high. The biofuels market serves as a “supply buffer” that ensures grain is constantly available for human consumption and feed, emphasises the German oilseed association UFOP.