The President/CEO of the Renewable Fuels Association addressed the Export Exchange 2010 today and highlighted the importance of U.S. ethanol policy and expansion into foreign markets which is critical for the DDGS industry. You can read his full remarks here as well as listen to them below.
In his remarks, Dinneen said, “As a nation, failure to continue the growth of our domestic ethanol industry will not only limit our ability to reduce our dependence on foreign oil, but constrain our ability to provide a high quality livestock feed to our domestic livestock industry and world trade partners. Make no mistake, the success of the distillers grains market is directly tied the fate of American ethanol production.”
Dinneen drew parallels between the markets for fuel ethanol and for distillers grains underscoring the need for expanded trading relationships. “You have heard talk of the ethanol blend wall that limits the amount of ethanol that can be used. In much of the same manner, we are rapidly approaching a feed wall in the U.S. Due to current limits in dietary rations, the livestock feed market will likely be saturated with distillers grains when the industry is producing between 35 and 45 million metric tons. As we spoke about before, we are rapidly approaching the lower end of the “feed wall” estimates.”
You can listen to Bob’s speech here: Bob Dinneen Speech