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US companies opt for corn-based oil and affect the feed industry

US companies’ decision to go for corn-based ethanol is beginning to affect the animal feed industry. Used both in the kitchen and in the production of biodiesel, corn oil emerged last year as a profitable niche for ethanol producers looking to supplement their income in times of weak returns. However, the extraction affects the amount of fat present in the sector’s main by-product, dry distilled grain (DDG).

The yellow powder is present in all feed for cattle, pigs and poultry. Extracting oil makes DDG less effective in helping animals grow before slaughter. Researchers say that concern over the lower levels of fat is only just beginning to appear. Specialists say livestock farmers may begin to reduce the use of DDG and switch to soybean meal.

Information provided by Dow Jones

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