Elanco on Food Production Challenges at #ExEx16

Cindy Zimmerman

exex16-elancoOne of the speakers at Export Exchange 2016 last week was Todd Armstrong, Senior Director of Global Market Access at Elanco Animal Health, who talked about balancing customer expectations with the realities of a growing population.

Armstrong discussed some of the major challenges facing food producers today, such as the population growth, technology convergence, and sustainability concerns, and considered how to continue addressing those challenges as consumers continue to place increased pressure on producers to utilize specific production methods.

“From the field to the dinner plate, the consumer is demanding and expecting increased transparency on what happens to their food,” said Armstrong in his speech, where he identified the “clean food” movement that calls on producers to provide options like cage-free eggs, antibiotic-free meat, as a major driving force of the change to consumer perception. “But this clean food movement does not always relate to safe food.”

Armstrong also discussed Elanco’s #OneHealth4All initiative and the importance of staying aware of, and responding to, the way food production is being discussed in the media and online.

The Export Exchange is co-sponsored by the U.S. Grains Council (USGC) and the Renewable Fuels Association (RFA) every other year to bring together international buyers and domestic suppliers of corn, ethanol co-products, sorghum and barley.

Listen to his full presentation here:
Presentation by Todd Armstrong, Elanco Animal Health=

View and download photos from the event here: 2016 Export Exchange Photo Album.

Coverage of Export Exchange 2016 made possible by Coverage of Export Exchange 2016 made possible by the Renewable Fuels Association
Audio, Distillers Grains, Ethanol, Ethanol News, Export Exchange, Exports, livestock feed, RFA, USGC

#ExEx16 Panel on Global DDGS Utilization

Cindy Zimmerman

exex16-ddgs-panelA panel of U.S. Grains Council consultants traded international perspectives on the utilization of the ethanol co-product distillers dried grains (DDGS) in various countries during Export Exchange 2016.

The panel included (pictured left to right) Indonesia consultant Dr. Budi Tangendjaja, Moroccan consultant Dr. A. Ait Boulahsen, USGC Global Trade manager Alvaro Cordero and moderator Kevin Roepke, USGC regional director for Southeast Asia. ExEx16 DDGS Panel

The group discussed the challenges and opportunities of increasing use of DDGS in animal feed in various regions of the world. Cordero says more than 40 countries are consistent customers for U.S. DDGS but others are leaving “a lot of money on the table” by not taking advantage of the feed.

exex16-alvaro“Countries have been able to embrace and use DDGS in a fast and very aggressive way, while other countries have not,” said Cordero in an interview after the panel discussion. “Some are basic logistical issues, others are simply the difficulty for them to change their ways of working for decades with the same type of formulation.”

While China still remains the top destination for U.S. DDGS, despite a significant drop this year due to trade issues, Mexico is number two and still growing. “Right now we’re looking into regions where very little exports are occurring, such as southern Mexico,” said Cordero. “Also, the swine industry in Mexico … could have higher inclusion rates.”

Learn more in this interview – Interview with Alvaro Cordero, USGC

2016 Export Exchange Photo Album

Coverage of Export Exchange 2016 made possible by Coverage of Export Exchange 2016 made possible by the Renewable Fuels Association
Audio, Distillers Grains, Ethanol, Ethanol News, Export Exchange, Exports, International, livestock feed, USGC

Missouri Governor Authorizes Biodiesel Fund

Joanna Schroeder

Missouri soybean farmers will finally be receiving a portion of payments for their biodiesel under the Missouri Qualified Biodiesel Producer Incentive Fund. Governor Nixon has released $3 million to reduce the amount of $9.6 million currently owed to Missouri farmers who invested in biodiesel more than a decade ago through the fund. In response, The Missouri Soybean Association (MSA) along with the state’s soybean farmers thanked the governor.

missouri-soybeans-logoBiodiesel is an important driver for the soybean market in Missouri, as well as on the national and global levels,” said Missouri Soybean Association President Matt McCrate. “Missouri is a top state for biodiesel production, and benefits greatly from the renewable fuel’s economic and environmental contributions. We appreciate the support of those benefits from our elected leaders, as well as their efforts to make good on commitments to repay that outstanding debt.

The Missouri Soybean Association’s top legislative priority during the 2016 session was securing the completion of deferred payments within the Missouri Qualified Biodiesel Producer Incentive Fund. That repayment was recommended by Governor Nixon in his 2016 State of the State address and included in HB 2006. The bill was passed during the spring session and signed by Gov. Nixon May 6, 2016 However, Gov. Nixon withheld those funds this summer and earlier this fall.

advanced biofuels, Biodiesel

#Ethanol Report from #ExEx16

Cindy Zimmerman

exex16-signExport Exchange 2016, sponsored by the Renewable Fuels Association (RFA) and the U.S. Grains Council (USGC), was held this past week in Detroit, Michigan with over 400 attendees, including some 200 international buyers and end users from more than 35 countries. The event is held every other year to bring together international buyers and domestic suppliers of coarse grains and ethanol co-products used for animal feed.

In this edition of The Ethanol Report, we hear from RFA CEO Bob Dinneen, USGC CEO Tom Sleight, RFA Senior VP Geoff Cooper, USGC Manager of Global Trade Alvaro Cordero, and USGC Mexico City Director Ryan LaGrande about the event and opportunities for exports of ethanol co-products.

Ethanol Report from Export Exchange

2016 Export Exchange Photo Album

Audio, corn, Distillers Grains, Ethanol, Ethanol News, Ethanol Report, Export Exchange, Exports, RFA, USGC

Growth Energy Talks Ethanol with FFA

Jamie Johansen

ffa-16-269-editedFFA students already understand the importance of ethanol to rural communities and national security, says Cory Harris of Growth Energy and American Ethanol.  That’s why they’ve chosen this special group of agriculture students to focus the message of performance.

“Our message here at National FFA Convention, […] we really wanted to focus this year on engine performance with Ethanol,” Harris told Jamie Johansen.

Many of the students at the event knew ethanol was corn based, and some related it to racing, but the team at Growth Energy wanted to go a little further.  They brought in a racing boat and experts to share with the future of agriculture just how proficient this alternative fuel can be.  Students can be skeptical about how it will work for them, Harris explains.  Their goal is to assure members that the product works great in small engines too, like their car or lawn mower.

The Convention provides a great place for students to talk about the science behind the product, but it will also provide the opportunity for a student to attend a NASCAR race and see ethanol in action with a drawing for free tickets.

Learn more about Growth Energy and their goals for FFA in Jamie’s interview: Interview with Cory Harris, Growth Energy

Be sure to check out even more action by viewing the 89th National FFA Convention & Expo Photo Album.

Coverage of the National FFA Convention is sponsored by
Coverage of the National FFA Convention is sponsored by FMC
Coverage of the National FFA Convention is sponsored by New Holland
Ag group, American Ethanol, Audio, Ethanol, Growth Energy

NBB Reinforces Need for Biodiesel Tax Incentive

Joanna Schroeder

The National Biodiesel Board (NBB) is reinforcing the need once again for the biodiesel tax incentive. On behalf of America’s biodiesel producers, the association sent a letter to House and Senate tax committee leaders urging the extension of the incentive prior to its expiration on December 31, 2016.

National-Biodiesel-Board-Logo“We strongly urge you to extend the biodiesel tax credit and take this opportunity to make a simple, common-sense reform by focusing the credit on U.S. production,” said Donnell Rehagen, Interim NBB CEO in the letter. “Legislation pending before Congress – S. 3188 and H.R. 5240 – would accomplish these objectives by extending the incentive through 2019 and changing it from a blender’s credit to a domestic producer’s credit. The legislation has strong support from American biodiesel producers and strong bipartisan support in both the House and Senate – reflected last year when a similar proposal passed the Senate Finance Committee.”

As noted by NBB, the growth of the industry has provided many benefits including reducing emissions, strengthening energy security, creating jobs and economic activity. Today the biodiesel industry supports nearly 48,000 U.S. jobs and $1.9 billion in wages.

The letter continued, “Many biodiesel producers who are now poised to expand and hire would likely cut jobs and production. Congress can avoid this with a long-term extension giving producers the policy stability they need to plan for the future.”

According to NBB, there are more than 1.5 billion gallons of unused production capacity that stands ready to be utilized under the right policy framework. Mobilizing that capacity would create thousands of jobs and billions of dollars in economic activity. Additionally, reforming the incentive would save the Treasury some $90 million as imports are reduced and domestic production rises, according to the Joint Committee on Taxation.

As noted in a previous post, under the current “blender’s” structure of the incentive, foreign biodiesel imported to the U.S. and blended with petroleum diesel in the U.S. is eligible for the tax incentive. More than ever, foreign biodiesel producers are taking advantage of the U.S. incentive by shipping their product here. In 2015 alone, some 670 million gallons of biodiesel and renewable diesel was imported to the U.S., making up nearly a third of the U.S. market. However, a version of the biodiesel tax incentive would eliminate the ability for foreign produced biodiesel to be eligible for the tax credit.

advanced biofuels, Biodiesel, NBB

Christopher Hogan Joins Growth Energy

Joanna Schroeder

chris-hogan_headshot

Christopher Hogan has joined Growth Energy as their new Vice President of Communications and Public Affairs. In this role, Hogan will oversee all aspects of the organization’s efforts to raise awareness of ethanol’s importance as America’s leading source of clean, affordable, homegrown energy.

“I’m excited to join the dynamic team at Growth Energy and help shape a new generation of best-in-class communications strategies across advocacy, public relations and social media,” said Hogan. “The ethanol industry encompasses some of the country’s most passionate entrepreneurs, innovators and advocates. I can’t wait to help bring more of those voices into the conversation about America’s future, share their stories with consumers and drive the debate among policymakers.

Hogan joins Growth Energy from the International Bottled Water Association (IBWA), where he served since 2011 as Vice President of Communications. In that role, he represented the industry in U.S. and international publications and managed award-winning public relations efforts designed to strengthen IBWA’s role as a thought leader at the local and national level on industry, environmental, health, safety and consumer issues.

America’s biofuel industry continues to grow, opening new and exciting opportunities to engage with consumers, business leaders and policymakers,” said Emily Skor, CEO of Growth Energy. “Chris’ deep understanding of association management, energy policy and consumer engagement make him a perfect fit to lead those conversations. With the addition of his expertise, Growth Energy will continue to break new ground in our efforts to deliver better, cleaner choices at the pump.

Company Announcement, Growth Energy, Uncategorized

Trump Leading Farm Country in Agri-Pulse Poll

Joanna Schroeder

screen-shot-2016-10-26-at-11-19-41-pmA new nationwide poll commissioned by Agri-Pulse reveals that a majority of farmers and ranchers favor Donald Trump over Hillary Clinton in the 2016 presidential race. Fifty-five percent of those surveyed said they support Republican Trump while 18 percent indicated they support Democrat Clinton. Only 2 percent plan to vote for Libertarian candidate Gary Johnson and just 1 percent for the Green Party’s Jill Stein. With only two weeks until the election, 15 percent of those surveyed said they were undecided and 8 percent did not answer the question.

When the results are broken down between male and female respondents, 59 percent men and 37 percent women indicated they would vote for Trump while 15 percent males and 33 percent females responded with support for Clinton. Eighteen percent women indicated they were undecided. The GOP nominee scored particularly well in two battleground states, with support from 68 percent of the farmers and ranchers in Ohio and 58 percent in Florida.

screen-shot-2016-10-26-at-11-19-50-pmCompared to a similar Agri-Pulse poll conducted in late January, respondents indicated an even greater dissatisfaction with the direction of the country, the farm economy and the regulatory environment.

When asked if they were satisfied or dissatisfied with the way things are going in America, 86 percent said they were “somewhat” or “very dissatisfied.” That indicates an uptick from another Agri-Pulse poll conducted in late January of this year. At that time, slightly over three-quarters of the voters surveyed were dissatisfied with the direction of the country. Those levels of dissatisfaction were at 90 percent or higher in Florida, North Carolina, Pennsylvania and Ohio.

“Economic growth” rose to the top when respondents were asked to identify the one most important issue facing this country heading into the 2016 presidential election, with about 19 percent nationally selecting this option, up from 9 percent in January. That was the choice of about 19 percent of the Republicans, 16 percent of the Democrats and 18 percent of the Independents.

That represents a substantial shift from the January poll, when 19 percent of Republicans and Democrats listed “national security/terrorism” as their top choice, followed by “moral values” at 14 percent, “immigration/ag labor” at almost 14 percent and “deficit reduction” at 13.5 percent. In the October poll, the second most important issue selected was “deficit reduction,” favored by about 16 percent, followed by “moral values” at 12 percent nationally. National security and terrorism dropped down to 7 percent. Read More

Agribusiness, Farming, Opinion, politics

Keeping Exports on the Move

Cindy Zimmerman

exex16-eriksenWith yet another record grain crop this year, having the transportation infrastructure to keeping it moving is more important than ever.

“Transportation is everything,” said Ken Eriksen with Informa Economics at this week’s Export Exchange, sponsored by the Renewable Fuels Association (RFA) and the U.S. Grains Council.

Eriksen says grain exports are expected to set a record this year at 5.4 billion bushels of grain by the end of this year. “During October, November and December, we’re going to be running about 1.9 billion bushels of exports,” he said. “To do that we’re going to be running about 150 million bushels a week out of the United States.” Because that pace has not been met in the first part of October, Eriksen says it will have to jump up to as much as 180 million bushels for the rest of the year. “The best we’ve ever done in one week is 148 million and that was one year ago.”

“This year is going to be about as good as it gets for moving grain, soybeans, DDGS and other products out of the United States,” said Eriksen. “The challenge for the industry is to continue to encourage investment in infrastructure.”

Listen to Eriksen’s presentation here: Ken Eriksen, Informa Economics at Export Exchange

2016 Export Exchange Photo Album

Coverage of Export Exchange 2016 made possible by Coverage of Export Exchange 2016 made possible by the Renewable Fuels Association
Audio, corn, Distillers Grains, Ethanol, Ethanol News, Export Exchange, Exports, RFA, transportation

Supply Demand Outlook for DDGS at #ExEx16

Cindy Zimmerman

exex16-geoffAt Export Exchange 2016 in Detroit this week, Renewable Fuels Association (RFA) Senior Vice President Geoff Cooper delved into the supply-demand outlook for U.S. ethanol industry co-product exports, with a focus on distillers dried grains with solubles (DDGS).

“We’re looking at record ethanol production this year, so obviously we’re going to be producing a record amount of distillers grains as well, somewhere around 37-38 million metric tons,” said Cooper. “That’s easy to figure out but what gets tricky is the demand side.”

In the domestic market, Cooper says demand is bright. “We are looking at record numbers of hogs and poultry in the U.S. and obviously those animal eat a fair amount of distillers grains,” he said. In addition, dairy cow inventories are at a 20-year high and cattle on feed numbers are increasing. “So, we’re looking at record feed demand in the U.S., and that bodes well for distillers grains.”

On the export side, Cooper says the industry is exporting about 12 million tons, or one-third of the distillers grains produced right now, with just ten countries making up the bulk of that. “We’ve seen dramatic growth in exports in the last decade, but a lot of that has been tied to the Chinese market,” said Cooper. China accounted for as much as half of DDGS exports two years ago, but that has fallen dramatically in the past year. “Fortunately, when we’ve seen losses in China, we’ve seen increases in exports to other markets,” he said. In fact, exports of U.S. DDGS to Mexico, Vietman, South Korea and Turkey all increased significantly in this past marketing year.

Learn more in this interview: Interview with Geoff Cooper, RFA

Check out Cooper’s power point presentation here.

2016 Export Exchange Photo Album

Coverage of Export Exchange 2016 made possible by Coverage of Export Exchange 2016 made possible by the Renewable Fuels Association
Audio, Distillers Grains, Ethanol, Ethanol News, Export Exchange, Exports, livestock feed, RFA