Finding the Value

FROM THE MAY ISSUE: Editor Lisa Gibson previews the magazine, including feature articles about a growing market for coproducts, how plants are capturing value from high-protein coproducts, and the ethanol lobby's message to the U.S. House, and more.
By Lisa Gibson | April 18, 2019

High-protein coproducts are an increasingly popular hedging option as plants continue to explore new ways to diversify revenue streams. With tight margins, it’s a wise tactic. But the capacity gains some of the coproduct technologies bring to an oversupplied ethanol market raise questions about truly capturing the value they promise.

One source in “The Daily Grind,” on page 24, said it best: We need to make the same number of gallons, while making more protein and oil. In this market, extra ethanol production doesn’t help pay for a shiny new technology that makes a shiny new protein. Producers of both ethanol and these technologies say the value is in efficiency, as well as an ability to fluctuate production and speed with the market. It’s relevant in this market. I think it’ll be a useful read.

Speaking of adding value, research is showing the aquaculture market offers promise for DDGS. Fish feed has much the same nutrient requirements as livestock or poultry feed, and DDGS have the added benefit of being cheaper than soybean meal or fish meal. The potential increases even more with the high-protein products we’re also exploring in this issue. Find out more on page 16.

Moving away from products and into advocacy, the feature starting on page 32 summarizes some of the ways our industry’s lobbying efforts might evolve with a changing Congress. We have a Democratic majority in the House of Representatives, and that means we get to lean on our environmental benefits more than we have with a Republican audience. We read the room. Just like in life.

Finally, this month we provide the technical sessions planner for the upcoming International Fuel Ethanol Workshop & Expo. It’s June 10-12 in Indianapolis and, as always, offers multiple tracks of diverse content for all facets of the industry. They’re all running at concurrent times, so you’ll want to check this planner to find out which panel discussions you want to take in. It starts on page 40.

We cover a lot this month, but I think the overall theme here is value. From diversified coproducts, to the messages of ethanol’s merit we deliver to Congress, to the most beneficial topics at FEW, it’s all about finding value. And we value your readership. Enjoy.

 

Author: Lisa Gibson

Editor

lgibson@bbiinternational.com