Brian Otto watches American trucks arrive in Alberta every week with loads of dried distillers grain from U.S. Midwest ethanol plants.
He may flinch when he sees it, but the Alberta barley producer understands why more DDGs are showing up in the province from the United States.
“Obviously the feedlot industry is finding in their bottom line, it works for them,” said the president of the Western Barley Growers Association.
Beef researcher John McKinnon agreed. The University of Saskatchewan scientist has studied DDGs for 20 years and has found it makes economic sense to displace barley with higher percentages of the ethanol byproduct.
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“These distillers grains, whether they are corn or wheat, are used be-cause they are economically competitive right now,” he said.
Added Otto: “We all know the beef feeding business is struggling. I don’t see DDGs totally replacing barley.”
He supports research with the feeding industry to develop varieties that meet the specific dietary needs of hogs, cattle and poultry rather than protest the arrival of a competing feed.
“Western barley growers have never been against competition. It is a whole new industry developing around DDGs, so we are a firm believer the marketplace will find its place.”
Livestock producers have always used byproducts from the brewing, distilling and food manufacturing industries, but more of this commodity is arriving every year.
According to U.S. Grain Council statistics, Canada is the second-largest importer of dried distillers grain with solubles.
Canada imported 804,000 tonnes last year, up from 772,000 tonnes in 2008 and 453,000 tonnes in 2007.
Gowans Feed Consulting reported that April, May and June DDG prices were $155 per tonne at Lethbridge, $165 at Edmonton, $160 in Saskatchewan and $130 in Manitoba.
