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Shortage in Dried Distillers Grains (DDGs)

Mar 23, 2020

To Our CFE Customers,

Due to the recent economics within the ethanol industry, we are experiencing several plants slowing production and even stopping production completely. This largely affects our access to the bi-product Dried Distillers Grains (DDGs). All markets are under significant pressure, but when a main component of our livestock feed is affected, it deserves special attention. As corn demand is estimated to weaken significantly in the coming weeks, this puts significantly more pressure on an already strained ethanol margin environment.

At this time, we know that several plants have drastically slowed production and are planning to shut down. There are a few alternatives, but all of them are struggling with high mycotoxin levels and other quality issues, as well as low supply.

In-turn, this is creating a shortage in Dried Distillers Grains (DDGs) and we are being notified by our suppliers that prices are likely to rise. At this point, it appears that DDG’s will price itself out the rations and we want to make you aware of the situation.

If you utilize a nutritionist, we feel it is in your best interest to work with them regarding your feeding program to discuss alternative options. If you do not utilize a nutritionist, please contact your Feed Salesman or Staff to discuss the options. We have resources to reformulate rations for your feeding program with no disruptions in service to you or your farms.

Please call with any questions. Thank you for your patronage.
-CFE Feed Team

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