{"id":13870,"date":"2020-04-23T08:00:33","date_gmt":"2020-04-23T13:00:33","guid":{"rendered":"https:\/\/www.insta-pro.com\/?p=13870"},"modified":"2023-05-08T16:55:36","modified_gmt":"2023-05-08T21:55:36","slug":"near-term-ingredient-problem-ddgs-shortage-solution","status":"publish","type":"post","link":"https:\/\/instapro.spinuhost.com\/en\/blog\/businessstrategyandfinance\/near-term-ingredient-problem-ddgs-shortage-solution\/","title":{"rendered":"Near-Term Ingredient Problem: DDGS Shortage Solution"},"content":{"rendered":"<p>It\u2019s not every day that a 0.1-micron-diameter virus, invisible to the naked eye, comes along and changes the world. This is all the more fascinating when it\u2019s not even clear as to whether or not viruses are considered a <a href=\"https:\/\/en.wikipedia.org\/wiki\/Virus#Life_properties\">form of life<\/a>.\u00a0 In case you\u2019re curious, viruses are really quite small, as this <a href=\"https:\/\/www.khanacademy.org\/science\/high-school-biology\/hs-cells\/hs-introduction-to-cells\/v\/scale-of-cells\">video<\/a> shows, in relation to the havoc they can cause.\u00a0 I should probably also define \u201cnear-term\u201d \u2013 while it\u2019s true that the food and feed processing industrial infrastructure is inflexible and slow to change (i.e., an equipment processing line can\u2019t be installed overnight), in some cases, certain types of equipment can be retooled for new uses rather quickly, even within the same day. More on this below\u2026<\/p>\n<p>Immediately, it\u2019s going to be more of a challenge to obtain and formulate with distillers\u2019 dried grains with solubles (<a href=\"https:\/\/www.insta-pro.com\/en\/blog\/nutritionandtechnologies\/lessons-from-predicting-ddgs-quality-part-1-raw-observations\/\">DDGS<\/a>).\u00a0 This is because fuel prices have fallen drastically due to reduced travel, and also stocks of ethanol fuel are near an all-time high, making it impossible for some plants to continue operation (see <a href=\"https:\/\/www.ft.com\/content\/3aea9764-6e0c-11ea-89df-41bea055720b\">here<\/a>), especially if they <a href=\"https:\/\/twitter.com\/jeffpeterson01\/status\/1245436275592761344\">run out of places to store it<\/a>. \u00a0As DDGS are a by-product of the corn ethanol fuel industry, production will be curtailed, and supplies will fall.\u00a0 Already, the price of DDGS has <a href=\"https:\/\/www.dtnpf.com\/agriculture\/web\/ag\/blogs\/market-matters-blog\/blog-post\/2020\/03\/20\/dtn-weekly-average-ddg-price-surges\">surged<\/a> based on this situation.<\/p>\n<p>Especially for swine and poultry diets, this is critical because DDGS can be included at high levels (30-40% or higher) due to their relatively low price. Without abundant DDGS, more corn and soy meals will be needed to fill the gap, in order to keep diet costs low and simply to meet the nutrient needs of the animal.\u00a0Perhaps for corn this won\u2019t be a problem because corn demand from ethanol plants will be lower, but something must fill the gap for protein. This can be high-shear dry extruded\/partly-deoiled (ExPress\u00ae) soy meal as we\u2019ve discussed here time and time again (see <a href=\"https:\/\/www.insta-pro.com\/en\/blog\/nutritionandtechnologies\/express-the-genetic-potential-of-your-animals\/\">here<\/a>, <a href=\"https:\/\/www.insta-pro.com\/en\/blog\/businessandstrategy\/cheaper-ingredients-may-have-hidden-costs\/\">here<\/a>, and <a href=\"https:\/\/www.insta-pro.com\/en\/blog\/nutritionandtechnologies\/properly-processed-express-soy-meal-maintains-high-digestibility-greater-metabolizable-energy\/\">here<\/a>).<\/p>\n<p>Additionally, diet formulations with higher-quality ingredients tend to lower diet costs compared to lower-quality alternatives. For example, swine grower diets formulated ExPress\u00ae soymeal saved $1.40\/ton of complete feed compared to hexane-extracted soybean meal.<\/p>\n<p>And, with plentiful, presumably cheaper corn, this opens even better possibilities for value-added processing. We\u2019ve discussed the use of high-shear dry extrusion for corn several times. For example, the Insta-Pro high-shear version produces <a href=\"https:\/\/www.insta-pro.com\/en\/blog\/nutritionandtechnologies\/evaluating-ingredients-part-7-extruded-corn\/\">very high quality extruded corn<\/a> with a <a href=\"https:\/\/www.insta-pro.com\/en\/blog\/nutritionandtechnologies\/high-shear-dry-extruded-products-for-highly-digestible-rumen-microbial-protein-in-dairy-part-ii-high-shear-dry-extruded-corn\/\">uniquely-high rate of starch gelatinization<\/a>.<\/p>\n<p>Back to retooling existing equipment \u2013 our widely-used 2000 high-shear dry extruder for soy can, relatively easily, be converted to an extruder for corn by replacing the entire shaft.<\/p>\n<p>Whenever situations and markets change quickly, look for any new developments that may benefit you.\u00a0 Ask your ExPress\u00ae soy customers if they will be requiring more meal sooner rather than later.\u00a0 Also, consider either converting an existing soy extruder into a corn extruder, or <a href=\"https:\/\/www.insta-pro.com\/en\/blog\/engineeringandmaintenance\/optimizing-your-corn-extrusion-process\/\">buying a 2000-CG<\/a>, to enter the value-added corn market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s not every day that a 0.1-micron-diameter virus, invisible to the naked eye, comes along and changes the world. This is all the more fascinating when it\u2019s not even clear as to whether or not viruses are considered a form of life.\u00a0 In case you\u2019re curious, viruses are really quite small, as this video shows, [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[8482,7838],"class_list":["post-13870","post","type-post","status-publish","format-standard","hentry","category-businessstrategyandfinance","tag-ddgs","tag-high-shear-dry-extrusion"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Near-Term Ingredient Problem: DDGS Shortage Solution - Insta-Pro<\/title>\n<meta name=\"description\" content=\"It is a challenge to obtain and formulate with distillers\u2019 dried grains with solubles (DDGS) so now what?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/instapro.spinuhost.com\/en\/blog\/businessstrategyandfinance\/near-term-ingredient-problem-ddgs-shortage-solution\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Near-Term Ingredient Problem: DDGS Shortage Solution\" \/>\n<meta property=\"og:description\" content=\"It is a challenge to obtain and formulate with distillers\u2019 dried grains with solubles (DDGS) so now what?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/instapro.spinuhost.com\/en\/blog\/businessstrategyandfinance\/near-term-ingredient-problem-ddgs-shortage-solution\/\" \/>\n<meta property=\"og:site_name\" content=\"Insta-Pro\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/instaprointernational\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-23T13:00:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-08T21:55:36+00:00\" \/>\n<meta name=\"author\" content=\"Dave Albin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@InstaProInt\" \/>\n<meta name=\"twitter:site\" content=\"@InstaProInt\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/instapro.spinuhost.com\\\/en\\\/blog\\\/businessstrategyandfinance\\\/near-term-ingredient-problem-ddgs-shortage-solution\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/instapro.spinuhost.com\\\/en\\\/blog\\\/businessstrategyandfinance\\\/near-term-ingredient-problem-ddgs-shortage-solution\\\/\"},\"author\":{\"name\":\"Dave Albin\",\"@id\":\"https:\\\/\\\/insta-pro.spinudev.com\\\/en\\\/#\\\/schema\\\/person\\\/1d4085c5c7c76d6bdf73987523b247f7\"},\"headline\":\"Near-Term Ingredient Problem: DDGS Shortage Solution\",\"datePublished\":\"2020-04-23T13:00:33+00:00\",\"dateModified\":\"2023-05-08T21:55:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/instapro.spinuhost.com\\\/en\\\/blog\\\/businessstrategyandfinance\\\/near-term-ingredient-problem-ddgs-shortage-solution\\\/\"},\"wordCount\":493,\"publisher\":{\"@id\":\"https:\\\/\\\/insta-pro.spinudev.com\\\/en\\\/#organization\"},\"keywords\":[\"DDGS\",\"high-shear dry extrusion\"],\"articleSection\":[\"Business Strategy &amp; Finance\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/instapro.spinuhost.com\\\/en\\\/blog\\\/businessstrategyandfinance\\\/near-term-ingredient-problem-ddgs-shortage-solution\\\/\",\"url\":\"https:\\\/\\\/instapro.spinuhost.com\\\/en\\\/blog\\\/businessstrategyandfinance\\\/near-term-ingredient-problem-ddgs-shortage-solution\\\/\",\"name\":\"Near-Term Ingredient Problem: DDGS Shortage Solution - 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