New Technology Expands Demand for DDGS23rd Annual Distillers Grains Symposium

May 16, 2019

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AuroraP L A N T L O C A T E D I N

SOUTH DAKOTA

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Novita Produces Two Products

Patent Nos. 8,227,015; 9,113,645; 9,351,505; 9,523,062Solvent extraction of oil from distillers dried grains and

methods of using extraction products

Novita uses a patented process to extract corn oil from DDGS to produce:• NovaMeal®, highly digestible protein for the dairy market• NovaOil®, renewable low carbon corn oil

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2005 Product Development Work Began2007 University Research Completed2011 Founded Novita Nutrition2014 On-Farm Demonstration2015 Groundbreaking on Novita Aurora Facility2017 Novita Aurora Start-up

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NovaMeal®

• Daily: 1,200 tons• Monthly: 36,000 tons• Annual: 432,000 tons

428,000 dairy cows per day (5.5 lbs feeding rate)

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9.4MILLION COWS

Large Dairy Market OpportunityNovita Expanding Demand

9.4MILLION TONS

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Problem: Milk Fat Depression

• Corn products are high in unsaturated fats

• Toxic to rumen microbes

• Raises risk of milk fat depression

• Reduced milk fat is bad for dairy economics

• Limits opportunity to feed DDGS to lactating dairy cows

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Milk Fat Depression Pathway

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Diets with >3% RUFAL at Risk

FromDr. Tom Jenkins

Rumen Unsaturated Fatty Acid Load (RUFAL)

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Many Diets are at High Risk of MFD

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DDGS Fat Level & Variability

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Focus on Feeding Digestible RUP

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Comparison with SBM & CM

Sources: *Journal of Dairy Science 93:4144-4154, 81:454-461 for Canola Meal **NDS PRO CNCPS 6.5 Feed Table

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Inclusion ResearchCorn made up 84% of the diet with improved component efficiency

Source: Mjoun et al., 2010; JDS. 93:288-303.

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Improved Components

Linear effect for milk fat and milk fat yield (P < 0.05)Quadratic effect for milk protein (P < 0.05)Quadratic effect for milk protein yield (P < 0.15)DM Intake (lb/d) was similar across treatments (50.3 lb/d average).

Component production efficiency was improved as level of NovaMeal in the diet increased.

Source: Mjoun et al., 2010; JDS. 93:288-303.

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Industry Benefit• Novita is expanding the market for DDGS• Reduce plant railcar fleet with local truck deliveries• Reduce rail related charges such as repairs, demurrage

and hard car charges• Provide quick ship (5,000 ton shed) in times of logistical

disruptions• After hours delivery of DDGS

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Thank You

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