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Food or Fuel?Biofuel popularity could tap animal feed resources
Corn is the most widely produced feed grain in the United States. It accounts for more than 90 percent of value and production of feed grains, according to the Department of Agriculture. In Canada, use of coarse grains in animal feed is more varied, according to Agriculture and Agri-Food Canada: The feed grain market is dominated by barley in western Canada and corn in the east. Given the importance of corn to animal producers, its popularity for biofuels may cause some concern. No doubt there will be food/feed versus fuel competition that will drive up the price, seriously affecting the cost of corn-based feed rations (as much as 70 percent corn) for commercial food animals. Widespread drought would limit the harvest even more. Surge in biofuels Over the past four years, world production of ethanol doubled to more than 12 billion gallons per year. About a billion gallons of biodiesel, the second most popular biofuel, were produced. This growth is expected to continue as many countries work to secure their energy supply and biofuels become more economically attractive. According to the Food and Agricultural Organization (FAO) of the United Nations, biofuels could satisfy 25 percent of global energy needs within 20 years. The DDGS question Corn used for ethanol rather than feed will be partially offset by substitution of Dried Distiller's Grain Solubles (DDGS) in some feeds. DDGS is a byproduct of corn-ethanol production and there will be mountains of it to dispose of. Commercial feed formulators have typically used DDGS in beef and dairy feeds. It has value primarily as a source of feed protein. It can also displace corn in beef and dairy concentrate because it contains metabolizeable energy as fat and non-starch lignin and fiber. The increase in DDGS supply means it may also be an economical protein and energy source in poultry and hog feeds. Research is under way to maximize its use in animal feeds of all types. Limits to grain production The combination of rising population and higher incomes has already pushed global grain production to its limits. With the exception of the 2004/05 crop season, when almost every region of the world enjoyed near-perfect growing conditions, grain consumption has outstripped production every year since the turn of the century. North American animal producers are entering a new era of heightened competition for grain commodities. If grain prices continue to rise, meat prices will likely follow. You can find our indepth look at the biofuel industry and its impact on grain production in The PotashCorp Letter, available at www.potashcorp.com/customer_service/newsletters/ potashcorp_letter_archive/.  Top
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