Ethanol Blog

If drought continues to affect California farmers, demand for dried distillers grains with solubles from the Midwest could fall as a result, according to an article by Missouri Farmer Today (http://bit.ly/…).

The West Coast drought could likely decrease dairy production, as large dairies such as those in California require large amounts of water to operate. This could lead to several possible outcomes: increased demand for Midwest dairy products, expansion of Midwest dairies or relocation of dairies from California to areas with more water supplies, such as the Midwest.

California's demand for forages rose with the continued drought; however, demand for DDGS could fall. Since many California dairies buy DDGS from the Midwest, decreased dairy production could limit DDGS shipments to West Coast areas.

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com

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