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Ethanol producers benefit from growing livestock sector

LINCOLN, NE — Distillers grains are an important component of an ethanol plant, as the high-quality feed ingredient adds to the plant’s bottom line.

“Ethanol producers pay close attention to the quality of their distillers grains,” said Todd Sneller, administrator of the Nebraska Ethanol Board. “A product with consistent quality is of greater value to livestock producers.”

In the past year, Nebraska’s ethanol plants produced more than 2 million tons of distillers grains. That’s a lot of feed; or, more precisely, Sneller said, that’s a lot of opportunity to add value. “Distillers grains adds value to corn and cattle add value to distillers grains,” he said. “In essence, ethanol production compounds the benefits of corn production to the state as a whole.”

These benefits include investments in rural communities, new jobs and increased tax revenues, he said.

As the ethanol industry grows, distillers grains production will increase. By some estimates, production will reach 10 million tons by 2010. “That creates a lot of opportunity to add value by feeding as much as we can locally,” Sneller said.
To take full advantage of that opportunity Nebraska needs a strong, healthy and growing livestock industry, Sneller said. “That’s what excites me about efforts to expand Nebraska’s livestock industry by organizations such as the Alliance for the Future of Agriculture in Nebraska (A-FAN),” he said. “The more we compound the value of our agricultural products in the state, the more everyone benefits.”

A-FAN helps farmers by assisting them when they want to add a livestock component to their operation or expand an existing operation.

A strong local livestock sector reduces the need to dry distillers grains and ship them via truck or rail to other parts of the country. Instead, Sneller said, ethanol plants can supply them to the livestock producers down the road, creating efficiencies for both the plant and producer. “Growing the livestock sector along with the ethanol industry makes sense in order to take advantage of those efficiencies,” he said.

A-FAN is a non-profit agriculture promotion, education and producer assistance organization.

Established in 1971 by the Nebraska Legislature, the Nebraska Ethanol Board is devoted to the development, support and advocacy of the ethanol industry.

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NOTE: To view Todd Sneller’s commentary about the importance of the livestock industry to Nebraska and the state’s ethanol producers, click here.

Media: For more information, contact Todd Sneller at 402.471.2941 or Roger Berry of A-FAN at 402.710.1110 or 888.580.2326