DTN Weekly Distillers Grains Update
Antibiotic Residues Rendered Inactive During Ethanol Production
DAVENPORT, Neb. (DTN) -- Two food safety groups recently filed a petition with the Food and Drug Administration asking that antibiotic use in ethanol production be prohibited. The petition claimed antibiotic residues in distillers grains fed to livestock results in antibiotic-resistant "superbugs." However, some leading researchers claim the antibiotics are rendered inactive during the fermentation process and are harmless.
The Center for Food Safety and Institute for Agriculture and Trade Policy say the practice of using antibiotics in ethanol production is unnecessary and only adds to the amount of antibiotics already given to food animals annually, according to a press release on the CFS website (http://bit.ly/…).
The petition claims the use of antibiotics in ethanol production is "illegal, unnecessary and adds to the catastrophic public health threat from antibiotic-resistant infections in humans" and asks that the practice be prohibited. The group fears antibiotics in distillers grains add to the non-therapeutic doses of antibiotics food-producing animals already receive in their feed or drinking water.
Recent scientific research has proven there is no risk from antibiotic use in ethanol production.
Researchers, led by Dr. Gerald C. Shurson, professor of swine nutrition and management at the University of Minnesota, conducted a survey of 159 samples of wet and dry distillers in 2012. Antibiotics are used in ethanol production to control bacterial infections during fermentation. The project proved that antibiotic residue levels in distillers grains are well below safety levels and are mostly biologically inactive.
The final paper "Presence and Biological Activity of Antibiotics Used in Fuel Ethanol and Corn Co-Products" was published March 5, 2013 in the Journal of Animal Science.
Although there had been some outcry about antibiotic residues in distillers grains, the intent of the study came from concerns expressed by DDGS end users in countries like Japan and some European countries that are extremely cautious about feed safety. With no published data, Shurson's approach was to find out if there were residues present, determine how any antibiotic concentrations compared to current FDA approval levels, and if there was any biological activity.
"We needed to get something that was publishable, so we could speak intelligently and accurately about antibiotic residues in distiller's grains and their risks in animal feeds," Shurson said."
All of the samples were analyzed by SGS North America, an analytical company from Brookings, S.D., and an FDA approved method was used to test for multiple antibiotics. The same samples were also submitted to Phibro EPG Lab in St. Paul, Minn., for virginiamycin analysis using a different, but FDA approved, method. After the preliminary data was collected, the samples were further evaluated using a confirmatory analysis at SGS. Both the preliminary and confirmatory results had to equal or exceed 0.05 parts per million (which was the minimum detection level of the assay) in order to be classified as a positive sample.
After the confirmatory analysis was performed, only 18 of the 159 wet and dry distillers samples tested positive for antibiotic residues: penicillin (n = 1), tetracycline (n = 1), virginiamycin (n = 2), erythromycin (n = 14) and tylosin (n = 0). But of those samples, most had concentrations below 1 ppm and all were substantially below the FDA level that would be considered harmful.
The data showed residues were present, but in very tiny amounts. In fact, only one of the 159 samples showed any bacterial inhibition, and this sample did not contain detectable levels of any of the antibiotics tested.
"Based on the preliminary results, our conclusion was that there are no concerns about using antibiotics at current levels in ethanol/DDG production," he said. "What we found was many fold lower than FDA's recommendation for feed."
While Shurson said he believes responsible agricultural professionals need to continually evaluate prudent use of antibiotics, he added that strict regulation or banning of antibiotics for ethanol production could be devastating to the ethanol industry. Without antibiotics to control bacterial infections, ethanol yields would be reduced. And without antibiotics, incomplete fermentation would leave a lot of starch and sugars in the DDGS, which would tie up amino acids during drying and reduce nutritional quality.
Also with lower yields, reduced quality DDGS and the extra cost of labor to control the bacteria, ethanol plants would lose even more revenue at a time when high corn prices have strained margins and caused some plants to either scale back or shut down production.
In the end, Shurson said consumers do not need to worry about antibiotic residues in meat from livestock or poultry fed distillers grains.
"The bottom line is that yes, we did find some residues in the samples we took, but the concentrations were much lower than FDA's levels for antibiotics in animals feeds," Shurson said. "And only one sample showed any biological activity.
"In the grand scheme of things, antibiotic residues in distillers grains do not appear to be much of a concern," he said.
Shurson added that while antibiotic resistance can occur, there is no scientific evidence showing antibiotic resistance can occur from antibiotics in distillers grains.
"There is concern and an ongoing debate about antibiotic use in food animal production, which may lead to increased restrictions on their use in the future, but we also need to remember the human part of this equation that is also a significant contributor to this problem," he said. "I would argue that people misusing prescribed antibiotics are as much of a contributor to the creation of antibiotic-resistant bugs as anything else."
Shurson said the final paper published about the research has been requested by both the FDA and its Canadian equivalent (Canadian Food Inspection Agency).
A policy for antibiotic residues in distillers grains, as the "Draft Guidance for Industry (GFI #222) -- Antibiotic Residues in Distillers Grains Used as Animal Food" is on the FDA's list of projects for 2013 (http://1.usa.gov/…). The CFIA is also considering rules regarding antibiotics in ethanol production.
Cheryl Anderson can be reached at Cheryl.anderson@telventdtn.com.
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DTN WEEKLY DISTILLERS GRAIN SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 4/19/2013 | 4/12/2013 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $240 | $245 | -$5 | |
| Modified | $140 | $140 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $240 | $245 | -$5 | |
| Indiana | Dry | $235 | $240 | -$5 | |
| Iowa | Dry | $235 | $240 | -$5 | |
| Minnesota | Dry | $230 | $230 | $0 | |
| North Dakota | Dry | $235 | $242 | -$7 | |
| New York | Dry | $245 | $250 | -$5 | |
| South Dakota | Dry | $235 | $238 | -$3 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $228 | $232 | -$4 | |
| Modified | $120 | $124 | -$4 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $235 | $240 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $255 | $250 | $5 | |
| Wet | $95 | $95 | $0 | ||
| Illinois | Dry | $255 | $255 | $0 | |
| Nebraska | Dry | $255 | $250 | $5 | |
| Wet | $95 | $95 | $0 | ||
| Wisconsin | Dry | $245 | $240 | $5 | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $235 | $240 | -$5 | |
| Indiana | Dry | $235 | $240 | -$5 | |
| Iowa | Dry | $230 | $235 | -$5 | |
| Michigan | Dry | $230 | $235 | -$5 | |
| Minnesota | Dry | $225 | $225 | $0 | |
| Nebraska | Dry | $230 | $235 | -$5 | |
| New York | Dry | $240 | $240 | $0 | |
| North Dakota | Dry | $230 | $235 | -$5 | |
| Ohio | Dry | $230 | $235 | -$5 | |
| South Dakota | Dry | $230 | $230 | $0 | |
| Wisconsin | Dry | $230 | $235 | -$5 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $232 | $240 | -$8 | |
| Iowa | Dry | $230 | $235 | -$5 | |
| Minnesota | Dry | $225 | $230 | -$5 | |
| Nebraska | Dry | $235 | $240 | -$5 | |
| Ohio | Dry | $235 | $245 | -$10 | |
| South Dakota | Dry | $225 | $235 | -$10 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $292 | $300 | -$8 | |
| *Prices listed per ton. | |||||
| Weekly Average | $235 | $239 | -$4 | ||
| The weekly average prices above reflect only those companies DTN | |||||
| collects spot prices from. States include: Missouri, Iowa, Nebraska, | |||||
| Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan, | |||||
| Wisconsin and Indiana. Prices for Pennsylvania, New York and | |||||
| California are not included in the averages. | |||||
*The spot prices gathered by DTN are only intended to reflect general market trends and may vary. Please contact individual plant or merchandiser for exact prices.
If you would be willing to take a weekly phone call and have your distiller grains spot prices listed in this feature, please contact Cheryl Anderson at (308) 224-1527 or (800) 369-7875, or e-mail cheryl.anderson@telventdtn.com.
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| VALUE OF DDG VS. CORN & SOYBEAN MEAL | ||||
| Settlement Price: | Quote Date | Bushel | Short Ton | |
| Corn | 4/18/2013 | $6.4450 | $230.18 | |
| Soybean Meal | 4/18/2013 | $411.00 | ||
| DDG Weekly Average Spot Price | $235.00 | |||
| DDG Value Relative to: | 4/19 | 4/12 | 4/5 | |
| Corn | 102.09% | 102.76% | 109.51% | |
| Soybean Meal | 57.18% | 60.51% | 62.79% | |
| Cost Per Unit of Protein: | ||||
| DDG | $9.40 | $9.56 | $9.84 | |
| Soybean Meal | $8.65 | $8.32 | $8.25 | |
| Notes: | ||||
| Corn and soybean prices taken from DTN Market Quotes. DDG | ||||
| price represents the average spot price from Midwest | ||||
| companies collected on Thursday afternoons. Soybean meal | ||||
| cost per unit of protein is cost per ton divided by 47.5. | ||||
| DDG cost per unit of protein is cost per ton divided by 25. | ||||
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USDA MARKET NEWS/DISTILLER GRAINS PRICES
USDA WEEKLY DISTILLERS GRAINS SUMMARY (Apr 12, 2013)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 230.00-240.00 | 118.00-128.00 | 86.00 |
| Minnesota | 230.00-240.00 | 128.00 | 80.00 |
| Nebraska | 230.00-255.00 | 128.00-138.00 | 83.00-100.00 |
| South Dakota | 228.00-235.00 | 128.00-135.50 | 85.00-86.00 |
| Wisconsin | 235.00-260.00 | 110.00-130.00 | NQ |
| Eastern Corn Belt | 233.00-255.00 | 118.00-125.00 | NQ |
| Kansas | 265.00-270.00 | NQ | 93.00-102.00 |
| Northern Missouri | 235.00-245.00 | NQ | 84.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 251.00-260.00 | ||
| Pacific Northwest | 274.00-285.00 | ||
| California | 276.00-291.00 | ||
| Texas Border | 310.00-322.00 | ||
| Lethbridge AB | 256.00-268.00 | ||
| Chicago | 245.00-260.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Apr 16, 2013)
Distillers Dry Grains
FOB Truck Offer 297.00 no comp
Rail Delivered California Points Offers 288.00-289.00 dn 8.00-11.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Apr 16, 2013)
Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were 282.00-290.00, steady to 22.00 lower compared to week ago offers. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were 300.00-305.00, also steady to 22.00 lower compared to week ago offers.
*All prices quoted per ton unless otherwise noted.
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RFA WEEKLY U.S. LIVESTOCK FEED PRODUCITON
| CO-PRODUCT OUTPUTS (metric tons) | |||||
| Week Ending | Distillers Grains | Corn Gluten Feed | Corn Gluten Meal | Total Feed | Corn Oil (lbs.) |
| 03/22/13 | 80093 | 8224 | 1523 | 89840 | 4192684 |
| 03/29/13 | 80292 | 8244 | 1527 | 90064 | 4203101 |
| 04/05/13 | 84969 | 8725 | 1616 | 95309 | 4447891 |
| 04/12/13 | 82780 | 8500 | 1574 | 92854 | 4333308 |
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
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IN THE NEWS
U.S. Ethanol Exports Down, DDG Exports Up
While year-to-date U.S. ethanol exports are down 30% than a year ago, exports of U.S. distillers grains have increased, according to an article by Ethanol Producer (http://bit.ly/…).
U.S. ethanol exports decreased by a third from January to February, with a total of 42.5 million gallons of denatured and undenatured ethanol. According to Ann Lewis, research analyst for the Renewal Fuels Association, U.S. monthly ethanol exports have only been this low once in the last two years. But although exports were down, the U.S. was once again a net exporter in January and February.
Export of distillers grains grew by 6 percent from January to February at a total of nearly 618,000 metric tons. Lewis said that total is similar to average monthly distillers grains exports in 2012. The largest destination for those exports was China, who received 148,256 metric tons, nearly a quarter of the U.S. DDG export total. Mexico, Turkey, South Korea and Vietnam received the remainder of those exports.
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DDG CONFERENCES
*Distillers Grains Technology Council Inc.'s 17th Annual Distillers Grains Symposium
The Distillers Grains Technology Council will hold its 17th Annual Distillers Grains Symposium on May 15-16, 2013 in Bloomington, Minnesota. For information, contact the DGTC office at (502) 852-1575 or (800) 759-3448, or check the DGTC website (http://www.distillersgrains.org).
(If you are sponsoring or know of any event, conference or workshop on distillers grains, and would like to list it in the DTN Weekly Distillers Grains Update, please contact Cheryl Anderson (see contact info below).
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DDG LINKS/RESOURCES
Organizations
*Distillers Grains Technology Council
http://www.distillersgrains.org
*National Corn Growers Association Corn Distillers Grains Brochure
*Iowa Corn
*Renewable Fuels Association - Ethanol Co-Products
*American Coalition for Ethanol
*U.S. Grains Council
*South Dakota Corn Utilization Council
http://www.drieddistillersgrains.com
Government Sites
*Iowa Department of Agriculture and Land Stewardship/Office of Renewable Fuels & Coproducts
http://www.distillersgrains.com
University Sites
*University of Minnesota - Distillers Grains By-Products in Livestock
and Poultry Feed
*University of Illinois - Illinois Livestock Integrated Focus Team Distillers Grains site
http://ilift.traill.uiuc.edu/…
*University of Nebraska - Beef Cattle Production By-Product Feeds site
*University of Nebraska Extension
*Iowa Beef Center - Iowa State University
http://www.iowabeefcenter.org/…
*University of Missouri - Byproducts Resource Page
*South Dakota State University - Dairy Science Department - Dairy cattle research
(select "Distillers Grains" from the topic menu)
*Purdue University Renewable Energy Web Site
http://www.extension.purdue.edu/…
(select "Biofuels Co-Products from the menu)
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We welcome any comments/suggestions for this feature. Please let us know what information is valuable to you that we could include in the Distillers Grains Weekly Update. Please feel free to contact Cheryl Anderson at (308) 224-1527, or e-mail cheryl.anderson@telventdtn.com.
(AG/CZ)
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