The co-product of the biofuels industry Wet Distillers grains with Solubles (WDGS) is key to livestock intensification, and it has changed the paradigm of production of milk and meat in the United States.
WDGS has become an axis on which the process of livestock intensification is pivoted.
This co-product of fermentation of cereals, particularly corn and sorghum, has changed the paradigm of production of meat and milk in the US.
Feedlots, which in the 70s had migrated from the Corn Belt to arid areas, suddenly found themselves in a challenging situation due to the abundance of WDGS. It is the waste formed after the fermentation and distillation of grain for production of ethanol and other derivatives.
Between 2000 and 2010, more than 200 new ethanol plants were installed in the Midwest US. During this period, ethanol was mainly produced from corn, surpassing the use of fodder, fructose syrup and other traditional products. Today, a third of the US crop goes to ethanol production, which replaces 10% of naphtha.
For every 3 tons of corn processed to obtain this biofuel, one ton of ethanol and 3 tons of WDGS are obtained with a moisture content of 25% to 30%. This product contains up to 30% proteins and 6% to 8% oil.
Consequently, much of the required proteins are replaced in rations for fattening and have an energy density higher than corn.
In Argentina, there are large volumes of WDGS available, which are aligned with the establishment of new biofuel plants. Companies need to continuously utilize this product, which is highly perishable. Meanwhile, the demand and supply cannot be subject to any possible technical break from the supplier. To do this, it is necessary to coordinate with customers "just in time" for scheduled volumes. Product acceptance and new logistics also result in strong growth in demand.