Canada starting to look at DDG

Reading Time: < 1 minute

Published: March 16, 2006

Distillers dried grain has become a tantalizing new option in U.S. feed markets, but in Western Canada, the alternative feed ingredient isn’t even on the menu. While ethanol plants south of the border are expected to churn out 17.5 million tonnes of DDG in the 2006-07 crop year, Western Canada is sitting at 9,600 tonnes of production, all of which comes from the Husky Energy plant in Minnedosa, Man.

“That’s about it right now. It’s not a substantial amount,” said Darwin Ruso, a trader with Wilbur-Ellis, a commodity trading company contracted by Husky to market the byproduct of its current and future ethanol plants.

Read Also

Concerned Chinese investors look at prices of shares (red for price rising and green for price falling) at a stock brokerage house in Jiujiang city, east Chinas Jiangxi province, 8 July 2013.

Chinese stocks tumbled on Monday (8 July 2013) on speculations that the resumed trading of Treasury bond futures and new share offerings will hurt stock prices. The Shanghai Composite Index dropped 48.93 points, or 2.44 percent, to 1,958.27 at the close.No Use China. No Use France.

Bond market seen as crop price threat

A grain market analyst believes the bond market is about to collapse and that could drive down commodity values.

Output is set to jump when new large-scale plants come on stream. Husky plants under construction in Lloydminster, Sask., and Minnedosa will add 260,000 tonnes of DDG, and the NorAmera Bioenergy plant in Weyburn, Sask., will contribute another 23,000 tonnes.

Ruso said it is too early to tell what part of the livestock industry will become the primary market for DDG.

“We’re just not 100 percent sure where it is going to fit in yet.”

He said the wheat-based product has many of the same attributes of canola meal, which is used in beef, dairy and hog diets.

Wilbur-Ellis has identified a premium market for the product in Washington and Oregon, but it is too costly to transport the product by rail to those destinations.

About the author

Sean Pratt

Sean Pratt

Reporter/Analyst

Sean Pratt has been working at The Western Producer since 1993 after graduating from the University of Regina’s School of Journalism. Sean also has a Bachelor of Commerce degree from the University of Saskatchewan and worked in a bank for a few years before switching careers. Sean primarily writes markets and policy stories about the grain industry and has attended more than 100 conferences over the past three decades. He has received awards from the Canadian Farm Writers Federation, North American Agricultural Journalists and the American Agricultural Editors Association.

Markets at a glance

explore

Stories from our other publications