Food vs Fuel: Myth Busted

There has been a lot of talking about bio-ethanol in the United States lately. On the one hand, President Obama wants America to be energy independent, so he will focus on bio-fuel to make that happen. On the other hand, General Motors started selling vehicles which are capable of running on E85 and wants more fueling stations where the product is available.

At this moment, the US has an impressive ethanol production, but people are worried about the food versus fuel myth which states that increased U.S. ethanol production is causing international land use change. The matter of the fact is that ethanol production has another important coproduct: distillers grains, used to feed lifestock.

“Distillers grains are a vitally important coproduct of U.S ethanol production from grain,” said Renewable Fuels Association Vice President of Research and Analysis Geoff Cooper. “The increasing availability of distillers grains is providing livestock and poultry feeders around the world with a feed source that can partially displace the need for corn, soybean meal, and other ingredients in feed rations.”

The US ethanol industry exported in 2009 distillers grains worth nearly $1 billion:

• For the fourth straight year, Mexico registered as the top market for U.S. distillers grains exports. Nearly 1.5 mmt, or 27 percent of total exports, were shipped to Mexico in 2009. Mexico imported 23 percent more distillers grains in 2009 than in 2008.
• Canada again ranked as the second largest export market for U.S. distillers grains, receiving nearly 804,000 metric tons of U.S. product.
• After importing virtually no distillers grains in 2008, China emerged as the third largest market for U.S. distillers grains exports in 2009 with 542,000 metric tons. China is seen as the largest potential growth market for distiller grains exports.
• Turkey and Thailand ranked fourth and fifth, respectively, as top destinations for U.S. distillers grains exports in 2009.