• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

Canada - Ethanol Consuming 30% of Corn & 4% of Wheat Cro

Help Support Ranchers.net:

Triangle Bar

Well-known member
Joined
Jan 24, 2008
Messages
1,282
Reaction score
2
Location
S. Central Colorado
Canada: Is Your Car Eating Your Lunch? 30% of Ontario's Corn Crop Used for Ethanol, Driving Up the Price of Animal Feed
FEBRUARY 1, 2012
By: The Toronto Star

Canadian cars are stealing from the mouths of pigs and cattle, according to a new study on the impact of blending ethanol with gasoline.The competition between food and fuel is squeezing the size of the province's livestock sector, says the study - a squeeze that could get even worse if the amount of ethanol used in gasoline increases.

About 30 per cent of Ontario's corn crop is now used to make ethanol, a type of alcohol that also works as vehicle fuel. That's up from less than 10 per cent a decade ago, the study says.

The increase results from federal regulations requiring 5 per cent renewable fuel in Canadian gasoline. In the U.S., the requirement is 10 per cent.

In Ontario, ethanol is made from corn, which is also the main ingredient in most livestock feed.

Competition from the fuel industry is pushing up feed prices for pork and beef producers, says the study by the George Morris Centre, a Guelph-based agriculture and food research organization.

And the losers are beef and pork producers, who face higher costs as a result. "Ethanol is adding about $65 million in total costs to eastern Canadian hog marketers annually," the study says.

Put another way, the higher cost of grain is costing hog farmers about $5 an animal in profit. Since the farmer's profit per hog was about $10 last year and $5 in 2010, it's a significant hit. Losses to eastern cattle producers are estimated at $23 million.

A similar, though less pronounced, effect is occurring in western Canada, where about 4 per cent of the wheat crop is now used for ethanol, diverting grain that might otherwise have been used for animal feed - mostly cattle.

Kevin Grier, a co-author of the report, told the Star that U.S. grain prices and the Canada-U.S. exchange rate have a big impact on the setting of Canadian grain prices.

But the increasing amount of corn being used for ethanol in eastern Canada is pushing up the local price as well, Grier says.

"By our calculation, it impacts the Ontario price by $15 to $20 a tonne," he said. That's a significant effect, given a typical corn price of about $200 a tonne.

The study was funded by the Canadian Cattlemen's Association, the Canadian Pork Council and the Canadian Meat Council.

Grier said researchers at the George Morris Centre had already been doing research on the impact of ethanol production on the livestock sector prior to receiving the funding for the latest study.

"We're not talking about putting the genie back in the bottle. It's already out," Grier said.

But policy-makers must be aware that growing vehicle fuel instead of drilling for it has consequences to other sectors.

"They have to recognize what it has done, and what it will do," Grier said.

Boosting the amount of alcohol in Canadian gasoline to the U.S. level of 10 per cent would devour even more of the corn crop and result in about a 40 per cent contraction of hog and cattle production in eastern Canada, Grier said.

That would lead to job losses in the meat processing industry. The resulting higher corn prices would also push up the cost of dairy, poultry and eggs, as producers would be able to pass their higher feed costs on to consumers through a pricing formula, he said.
 

andybob

Well-known member
Joined
May 24, 2006
Messages
1,199
Reaction score
16
Location
Fordingbridge England.
What is happening to the brewers' grain by-product of the ethanol industry? The by product of the brewing industry is highly sought after by cattle feeders and dairy farms.
 

Big Muddy rancher

Well-known member
Joined
Feb 10, 2005
Messages
22,206
Reaction score
441
Location
Big Muddy valley
andybob said:
What is happening to the brewers' grain by-product of the ethanol industry? The by product of the brewing industry is highly sought after by cattle feeders and dairy farms.

Is the byproduct still not of lesser value then the whole grain?
 

andybob

Well-known member
Joined
May 24, 2006
Messages
1,199
Reaction score
16
Location
Fordingbridge England.
Big Muddy rancher said:
andybob said:
What is happening to the brewers' grain by-product of the ethanol industry? The by product of the brewing industry is highly sought after by cattle feeders and dairy farms.

Is the byproduct still not of lesser value then the whole grain?

Yes, depending on the brewing system, the ME is sometimes a little higher but the rest of the analysis is 15% or higher less than the whole grain, I was just wondering what is the by-product being used for?
 

3 M L & C

Well-known member
Joined
Nov 8, 2010
Messages
1,182
Reaction score
0
Location
Kansas
The wet distillers products are so much in demand that the plants can't make enough around here. You would have a hard time finding a feedlot or a fair sized cow calf operation that dosn't use distilers. I know people that feed just wet distillers and corn stalks. I find it kind of funny that most cattle people complain about ethonal and how much of the corn crop it uses, but they never talk about distillers and what a great feed product that is.
 

mrj

Well-known member
Joined
Feb 21, 2005
Messages
4,530
Reaction score
1
Location
SD
Isn't the process simply taking the sugar from the corn and leaving the fat and other elements?

mrj
 

Latest posts

Top