Steady Supplies or Stockpiles? Dried Distillers Grains and U.S. Beef Production

TL;DRAbstract

Rapid expansion in U.S. cornbased ethanol production has created concern that large surpluses of distillers grains will occur. Expected production levels are indeed high. Using a relatively conservative set of assumptions, a recent CARD study projects that the U.S. ethanol industry will produce nearly 15 billion gallons of ethanol and 40 million metric tons of distillers grains (dry matter basis) per year by 2011. Under a much more aggressive set of assumptions, the CARD study projects that ethanol production could reach nearly 30 billion gallons annually by 2016, generating more than 88 million metric tons of distillers grains per year.

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