23rd Annual Distillers Grains Symposium– Symposium Overview –

Kurt A. Rosentrater, Ph.D.Executive Director & CEODistillers Grains Technology Councilwww.distillersgrains.org

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DISTILLERS GRAINS TECHNOLOGY COUNCIL

“Increasing the awareness of the value of Distillers Grains”

Welcome!

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• 23rd Annual Symposium!

• How many…?

OUR END USERS

http://www.distillersgrains.org/http://www.distillersgrains.org/

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BOTH TYPES OF ALCOHOL

http://www.distillersgrains.org/http://www.distillersgrains.org/

Brief Outline

• Distillers Grains Technology Council• Historical perspectives• Coproducts in 2019• Challenges and opportunities• 2019 Symposium Overview

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Distillers Grains Technology Council

Member-driven organization

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www.distillersgrains.org

What Do We Do?• Our Mission

The goals of our organization encompass a broad interest in current issues affecting the beverage, fuel, and livestock industries

• Service Support To provide educational and technical services to member producers and users of distillers grains

• Advocacy To be the principle voice on nutrition, safety, and regulatory issues affecting distillers grains

• Market Development To encourage, administer, and support research and promotion into new and existing market opportunities for distillers grains, and advancing the awareness of coproduct value

What Do We Do?• Yearly symposium• Other conferences & trade shows• Educational papers & publications• FDA / AAFCO / GIPSA

– Meetings– Written comments on proposed Federal Regulations

• Provide support to – Fuel ethanol companies– Beverage companies– Livestock producers

• Weekly information/news feed to FULL MEMBERS• Quarterly Board meetings• Literature library going back to late 1800s

Historical Perspectives

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DGTC has worked with beverage, fuel, and livestock industries > 70 years (began in 1945)

Hiram Walker & Sons

Seagram’s

Distillers Grains Technology Council• Late 1800s

– Distillers coproducts increasingly used in animal feeds (not rivers anymore) due to state environmental regulations

• 1913– First AAFCO definition for DDGS– Exports to Europe occurring

• 1945– Seagram’s Distillers Corporation & Hiram Walker &

Sons hosted a meeting of industry, university and government attendees to discuss feed uses of distillery coproducts

– Distillers Feed Research Council founded• Cincinnati, OH• Feeding trials, research, annual symposium 11

Prohibition:1920: 18th Amendment1933: 21st Amendment1966: all states fully repealed

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Distillers Grains in Animal Feeds• “Grain distillers have developed equipment and an attractive market

for their recovered grains” (Boruff, 1947)

• “Distillers are recovering, drying, and marketing their destarched grain stillage as distillers dried grains and dried solubles” (Boruff, 1952)

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Distillers Grains Technology Council

Distillers Feed Research Council Meeting, March 15, 1951, Cincinnati, OH

Distillers Feed Research Council Meeting, January 24, 1950, Cincinnati, OH

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Coproducts in 201914

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2019A typical corn ethanol fuel plantAnnually:- 47 million bushels of corn- 130 million gallons of denatured ethanol- 480,000 tons of coproducts

Fermentation ProductsTheoretical Yields1 kg glucose = 0.51 kg ethanol

+ 0.49 kg carbon dioxide

Practical Yields90 – 95% of theoretical

+ yeast cell mass+ secondary products

Anecdotally:

1 lb corn = 1/3 lb ethanol + 1/3 lb CO2+ 1/3 lb DDGS

1 bu corn = 2.8 gal ethanol + 18 lb CO2+ 17 lb DDGS

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http://www.distillersgrains.org/http://www.distillersgrains.org/

Evolving ProcessesNow:

1 bu corn =

2.8 gal ethanol + 18 lb CO2+ 16 lb DDGS + 1 lb oil

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What we do impacts livestock producers

Fuel Ethanol Growth

Growth of U.S. fuel ethanol industry

Corn oil extraction

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RFS

Sheet1

yearddgactual ethanolRFS ethanol

tmillion galmillion gal

19800.41755000.002

19810.42155000.002

19820.73505000.002

19830.83755000.002

19840.94305000.002

19851.26105000.002

19861.47105000.002

19871.78305000.002

19881.78455000.002

19891.78705000.002

19901.89005000.002

19911.99505000.002

19922.211005000.002

19932.412005000.002

19942.713505000.002

19952.814005000.002

19962.211005000.002

19972.613005000.002

19982.814005000.002

19992.914705000.002

20002.71622600.74074074070.0016646116

20013.11765569.35483870970.0017563739

20023.62140594.44444444440.001682243

20035.82810484.48275862070.0020640569

20047.33404466.3013698630.0021445358

200593904433.77777777780.0023053279

20061248844070.0024570025

200714.665214500.0022389204

20082393094500.0024707273

200930.110938450

201036.613298450

201138.413948450

201234.81330013300450

201335.21380013800450

Sheet1

Ethanol Production

Coproduct Generation

Year

Fuel Ethanol (gal) x 10 6

Coproducts (t) x 10 6

"10 million ton question"

Distilled Spirits Growth

1550 distilleries in U.S. in Jan 2019

360 new distilleries in 2019 alone (ADI, 2019)

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1982-Present

DDGS Quality & Value

Livestock producers

Ethanol/spirits manufacturers

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54%24%

16%

6%

Price is lower

Animalperformance isbetterBetter availability

Other

Why do you feed coproducts? • 54% of those who responded to

this question said that the main

reason they feed coproducts is

price or price related

• Response listed as "other" is

health benefits

• 24% said that they feed

coproducts due to increased

animal performance – this is

compatible with the 22% who

said that they did in fact see

increased animal performance)

http://www.distillersgrains.org/http://www.distillersgrains.org/

Challenges and Opportunities22

DDGS – Some Key Issues2005

• “Mountains of distillers grains”• Livestock feed

– Current generation products– Next generation products– Processed feeds– New species

• Standardized grading system• Sulfur / phosphorous• Mycotoxin contamination• Energy consumption / cost• Optimizing quality w/ ethanol

• Consistency / variability• Transportation

– Domestic– International– Flowability

• Other value-added uses– Human foods– Industrial products

10 MILLION TON QUESTION

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DDGS – Some Key Issues2019

• “Mountains of distillers grains”• Livestock feed

– Current generation products– Next generation products– Processed feeds– New species

• Standardized grading system• Sulfur / phosphorous• Mycotoxin contamination• Energy consumption / cost• Optimizing quality w/ ethanol

• Consistency / variability• Transportation

– Domestic– International– Flowability

• Other value-added uses– Human foods– Industrial products

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DDGS – Some Key Issues2019

• FSMA (Food Safety and Modernization Act)– Production practices & safety

• Effects of process evolution on livestock performance

• Are we capturing the TRUE VALUE from distillers grains?– Proteins– Fibers – Nutraceuticals

• We will learn about these and other issues– Our speakers are industry leaders

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2019 Symposium

• Wide array of topics– Markets, economics, domestic, exports– Beef, dairy, swine, poultry– Processing (upstream and downstream)– Regulatory issues – Networking opportunities

• Breaks• Lunches• Large reception tonight• Exhibitors / sponsors• Scholarship winners

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2019 Symposium

• Housekeeping items– Please silence your cell phones– Rest room locations– Trade show / meals– Emergency evacuation– Parking– Speakers, please stay on time

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Thank you!Enjoy the Symposium!

Consider becoming a DGTC member:

- Application forms available at registration desk

- www.distillersgrains.org

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DISTILLERS GRAINS TECHNOLOGY COUNCIL

“Increasing the awareness of the value of Distillers Grains”

23rd Annual Distillers Grains Symposium�– Symposium Overview – Welcome!OUR END USERSSlide Number 4Brief OutlineDistillers Grains �Technology �Council� Member-driven organizationWhat Do We Do?What Do We Do?Historical PerspectivesDGTC has worked with beverage, fuel, and livestock industries > 70 years (began in 1945)Distillers Grains Technology CouncilDistillers Grains in Animal FeedsDistillers Grains Technology CouncilCoproducts in 2019Slide Number 15Fermentation ProductsEvolving ProcessesFuel Ethanol GrowthDistilled Spirits GrowthDDGS Quality & ValueSlide Number 21Challenges and OpportunitiesDDGS – Some Key Issues�2005DDGS – Some Key Issues�2019DDGS – Some Key Issues�20192019 Symposium2019 SymposiumThank you!�Enjoy the Symposium!Slide Number 29