Deciding Which Distillers Grains to Feed

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Distillers grains represent a valuable co-product of grain-based ethanol production and are produced in one of three forms: 1) dry (DDG) at 10 percent moisture, 2) modified wet (MWDG) at 50-55 percent moisture and 3) wet (WDG) at 65-70 percent moisture. Cattle operations have used distillers grains as a source of energy and protein in growing and feeding cattle but need to make choices about which type of distiller to feed. Often this choice is some combination of price, transportation, nutrition, storage and past experience. Understanding price movements between the three distillers grains and corn can help make more informed purchasing decisions. Further, since distillers grains are difficult to hedge compared to corn, understanding these often sudden or inconsistent movements can help one understand the trade offs between feeding distillers and steam-flaked corn. I assess the distillers grains market in Nebraska using…

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