Transcript swael
Biofuel – Fact or Farce HINNER KÖSTER (Ph.D.) Cellulosic Conversion ?? • Fiber to cellulosic ethanol?? More worries about food versus fuel “Boosting U.S. ethanol production would mean higher food prices, both domestically and across the globe” Dick Bond, Tyson CEO Year 2011 2009 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 Ethanol, billion gallons 14 USA Ethanol outlook 12 10 8 6 4 2 0 (25% in 2007/08) (Reach level in 2009/10) New projections – baseline increase CBOT MARCH MAIZE PRICE USA DDGS Production Outlook U.S. DDGS Production from Ethanol ? 25 20 14 9.0 10 5 3.5 3 1.8 0.9 0.32 10 20 06 20 05 20 00 20 95 19 90 19 85 19 80 0 19 (MMT) 15 USA potential DDGS exports 12.0 11.2 10.0 8.9 7.2 5.7 6.0 4.6 3.7 4.0 2.0 2.9 1.2 1.5 1.9 2.3 Source: The ProExporter Network® Year 20 15 20 14 20 13 20 12 20 11 20 10 20 09 20 08 20 07 20 06 0.0 20 05 MMT 8.0 Relationship between US Maize and DDGS prices Source: CARD, Iowa State University DDGS Usage ─ All used by livestock (nothing wasted) Swine ─ 8.7 million tons Poultry ─ 6.9 million tons Dairy ─ 16 million tons Beef ─ 39 million tons Total ─ 70.6 million tons BIOFUELS SA “Biofuels provide us with a historic chance to fast-forward growth in many of the world’s poorest countries, to bring about an agricultural renaissance and to supply modern energy to a third of the world’s population” Jacques Diouf, Director General: UN Food and Agricultural Organisation BIOFUELS SA • LEGISLATION IS THE KEY TO BIOFUEL PRODUCTION IN SOUTH AFRICA • NO LIKELY DIRECTION IN THE SHORT TERM • COMPETITION WITH FOOD? • ECONOMIC VIABILITY? • HEALTH/ENVIRONMENTAL/ECOLOGICAL AFFECT? • JOB CREATION, SMALL SCALE BUSINESS DEVELOPMENT, 2ND ECONOMY, POVERTY ALLEVIATION? • CONTRIBUTING TO NATIONAL FUEL SECURITY? – PRICE, VOLUMES Maize-to-Ethanol: Total Supply Chain Cost Comparison (Source: Absa Agribusiness / Agrista) Total Supply Chain Cost Comparison R 680,000,000 R 660,000,000 R 640,000,000 R 620,000,000 R 600,000,000 R 580,000,000 R 560,000,000 R 540,000,000 R 520,000,000 Bergville Bethlehem Bothaville Ermelo Sasolburg Location Total Maize Procurement Cost Total Ethanol Transport Cost Total DDGS Transport Cost Secunda SOUTH AFRICAN MAIZE CONSUMPTION Impact of Maize Price on Planting Behaviour Source: Safex, Crop Estimates Committee Maize Price and Ha 4,000,000.00 1,800.00 3,500,000.00 1,600.00 1,400.00 3,000,000.00 1,200.00 2,500,000.00 Price Ha 1,000.00 2,000,000.00 800.00 1,500,000.00 600.00 1,000,000.00 400.00 500,000.00 200.00 - 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 Year Maize ha Maize price 2004/2005 2005/2006 2006/2007 2006/01/03 2006/02/06 2006/03/13 2006/04/17 2006/05/19 2006/06/22 2006/07/26 2006/08/29 2006/10/02 2006/11/03 2006/12/07 2007/01/12 2007/02/15 2007/03/21 2007/04/25 2007/05/29 2007/07/02 2007/08/03 2007/09/06 2007/10/10 2007/11/13 2008/01/02 2008/02/05 2008/03/31 2008/07/31 2008/09/31 $/t 500 450 400 350 300 250 200 150 100 50 GRAIN PRICES / GRAANPRYSE A - A ctual prices / Werklike pryse B - Futures prices/Termynpryse A USA Yellow Maize / VSA Geelmielies US HRW Wheat / VSA HRW Koring B MAIZE / MIELIES 2900 1900 1400 900 Import parity prices / Invoerpariteitspryse Export parity prices / Uitvoerpariteitspryse 2008/01/04 2007/01/04 2006/01/04 2005/01/04 2004/01/04 2003/01/04 2002/01/04 2001/01/04 400 2000/01/04 R/ton 2400 Mil Ton WORLD MAIZE POSITION WêRELD MIELIE POSISIE 800 780 760 740 720 700 680 660 640 620 600 Source/Bron: USDA 2003/04 2004/05 2005/06 2006/07 Maize production / Mielie produksie Maize consumption / Mielie v erbruik 2007/08 US No3Y MAIZE PRICE / VSA No3Y MIELIEPRYS R/t 3200 A gainst the actual exchange rate/ Teeno o r die werklike wisselko ers 2800 2400 2000 A gainst a fixed exchange rate o f R4.82 as o n 06/11/97 / Teeno o r 'n vasgestelde wisselko ers van R4.82 so o s o p 06/11/97. 1600 1200 800 30-Nov-07 07-Sep-07 15-Jun-07 03-Nov-06 04-Nov-05 05-Nov-04 07-Nov-03 04-Oct-02 05-Oct-01 03-Nov-00 05-Nov-99 01-Nov-98 06-Nov-97 400 YELLOW MAIZE PRICES RANDFONTEIN PRYSE VAN GEELMIELIES GELEWER IN RANDFONTEIN PRICES OF YELLOW MAIZE DELIVERED IN RANDFONTEIN Mei/May 2005 - Februarie/February 2008 Source: Grain SA 2,700.00 01/05/05 - 30/04/06 01/05/06 - 30/04/07 2,500.00 2,300.00 Invoerpariteit ARG YM 2,100.00 Invoerpariteit VSA YM 1,700.00 1,500.00 SAFEX YM 1,300.00 1,100.00 900.00 700.00 Uitvoerpariteit VSA YM 500.00 Datum/Date 2-Feb-08 2-Jan-08 2-Dec-07 2-Nov-07 2-Oct-07 2-Sep-07 2-Aug-07 2-Jul-07 2-Jun-07 2-May-07 2-Apr-07 2-Mar-07 2-Feb-07 2-Jan-07 2-Dec-06 2-Nov-06 2-Oct-06 2-Sep-06 2-Aug-06 2-Jul-06 2-Jun-06 2-May-06 2-Apr-06 2-Mar-06 2-Feb-06 2-Jan-06 2-Dec-05 2-Nov-05 2-Oct-05 2-Sep-05 2-Aug-05 2-Jul-05 2-Jun-05 300.00 2-May-05 R/ton 1,900.00 Futures prices/Termynpryse (2008/02/15) 1. DOMESTIC PRICES PER SAFEX (R/t) (a) 1. PLAASLIKE PRYSE VOLGENS SAFEX (R/t) (a) Commodity 2008/03 2008/05 2008/07 2008/09 2008/12 White maize R1736.00/t R1655.00/t R1598.00/t R1630.00/t R1679.00/t Yellow maize R1803.00/t R1706.00/t R1673.00/t R1717.00/t R1728.00/t Ethanol to DDGS Nutritional Components of Yellow Maize (DM base) Starch 72.6 % Maize Oil 4.3 % Protein 9.8 % NDF 9.0 % Minerals 1.6 % Average Yield of Maize in Dry-Milling Ethanol Production • Ethanol (40%) • DDGS (30%) • CO2 (30%) Ethanol Production (Fermentation process) Alpha-amylase H2O Gluco-amylase Steam CO2 Beer Well Grinding Liquefaction Tanks Fermentation Slurry Mash "cooking" Ethanol Syrup Evaporator Centrifuge CDS Distillation Wet Cake DDGS WDG Dryer Drum Nutritional Characteristics of Distillers Grains • Low in starch • Moderate in fat • Moderate in protein • High in fiber • High in phosphorous Byproduct composition (%DM) Maize DDGS WDGS ModDG CDS DM CP 85-90 85-90 30-35 42-50 25-35 8-10 28-35 28-35 28-35 20-25 NDF 7-10 35-43 35-43 35-43 >5 Fat level variable: 8-14% • dependent on solubles amount S level important to watch P in DGS: 0.75-1.0% P Fat 3.5-4.0 10-12 10-12 10-12 20-25 Problem 1 Lysine and Methionine content of DGS vs other protein ingredients Problem 2 – Nutrient Variation -Statistics for range of DDGS samples analysed by NIRParameter Range Moisture 2.8 – 16.9 Protein 23.4 – 38.5 Fat 6.6 – 12.6 Ash 3.0 – 6.7 ADF 9.9 – 13.9 NDF 28.3 – 32.3 Crude Fiber 5.4 – 8.2 Starch 6.5 – 9.5 Samples R2 SECV 303 311 124 126 34 34 34 104 0.981 0.987 0.913 0.828 N/A N/A N/A 0.653 0.57 0.53 0.40 0.39 0.65 0.81 0.54 0.46 Comparison of the Nutrient Content of Maize Distiller’s Grains and Maize Condensed Distiller’s Solubles 35 30 DM, % CP, % Fat, % CF, % Ash, % Ca, % P, % 25 20 15 10 5 0 Grains Solubles Nutrient composition and protein digestibility of DDGS based on solubles level Solubles levela, % of DDGS mix (DM) Item DM, % CP, % Fat, % NDF, % CP Digestibilityb 0 95.5 32.1 6.9 36.8 97.2 5.4 92.1 31.9 8.9 34.9 97.4 14.5 90.8 31.5 10.4 31.9 97.9 19.1 89.3 30.7 12.7 30.3 97.9 22.1 89.6 30.9 13.3 29.3 97.9 Solubles level calculated using % NDF of solubles (2.3%) and 0% solubles DDG b In situ total-tract protein digestibility a Nutrient Composition of DDGS 8 Ethanol plants sampled (5MN, 2SD, 1NE) Item NRC Crude Prot. % 27 - 33 EE % 7 – 13 NDF % 31 – 47 Mean Range 30.1 10.5 48.8 26 - 36 4 - 19 39 – 62 S.R. Harty, J-M Akayezu, J>G> Linn and J.M. Cassady 1998 Which DDGS has the best Quality? Not all DDGS are created equal A B Nutrition Color C Particle size Flowability DDGS Varies in Nutrient Content and Digestibility, Color, and Particle Size Among USA Sources Protein Characteristics of DDGS 8 Ethanol plants sampled (5 MN, 2 SD, 1 NE) Item Crude Prot. % Soluble CP ADICP RUP RUP Dig. NRC Mean Range 27 – 33 30.1 26 – 36 --------% of CP---------9.7 1 – 22 10 – 23 8.0 1 – 19 42 – 51 53.4 41 – 68 -------% of RUP------80 82.2 72 – 94 S.R. Harty, J-M Akayezn, J.G. Linn and J.M. Cassady, 1998 Total and digestible Lysine composition (%) and the color of 8 DDGS samples (as-fed basis) (JAPR: Research report) Sample L* Color1 b* 1 2 3 4 5 6 7 8 62.9 61.5 57.4 57.5 51.2 49.5 48.0 47.9 28.4 26.6 21.3 20.5 13.9 11.2 8.82 9.3 a* Digestible Lys (%) 7.6 6.1 5.8 6.9 5.7 4.1 4.3 4.4 0.66 0.64 0.61 0.59 0.52 0.47 0.37 0.18 Color [lightness (L*), redness (a*), and yellowness (b*)] measured with Minolta Chroma Meter CR-300 ADIN NDF Starch DDGS LOW DDGS AVE DDGS HIGH %CP %DM %DM 30 17 9 45 42 39 3 5 7 ADIN ADIN NDF NDFStarch Starch %CP %CP %DM %DM %DM %DM DDGS DDGSLOW LOW 3030 DDGS DDGS AVE AVE 1717 DDGS DDGSHIGH HIGH 9 9 4545 4242 3939 Wheat Bran = R1500/ton DDGS/Chop = R1700/ton 33 55 77 ADIN NDF Starch DDGS LOW DDGS AVE DDGS HIGH %CP %DM %DM 30 17 9 45 42 39 3 5 7 Wheat Bran = R1500/ton DDGS/Chop = R1700/ton ADIN NDF Starch DDGS LOW DDGS AVE DDGS HIGH %CP %DM %DM 30 17 9 45 42 39 3 5 7 Wheat Bran = R1500/ton DDGS/Chop = R1700/ton ADIN NDF Starch DDGS LOW DDGS AVE DDGS HIGH %CP %DM %DM 30 17 9 45 42 39 3 5 7 Wheat Bran = R1500/ton DDGS/Chop = R1700/ton ADIN NDF Starch DDGS LOW DDGS AVE DDGS HIGH %CP %DM %DM 30 17 9 45 42 39 3 5 7 Wheat Bran = R1500/ton DDGS/Chop = R1700/ton DGS in Feedlots INTEGRATED TECHNOLOGY Self sustaining closed loop system – environmentally friendly Beef and Manure production Waste Management Ethanol and DGS Production DGS use in feedlots • Inclusion < 15% (0.9-1.4 kg): protein • Inclusion > 15% (1.8+ kg): energy Studies Used - WDGS Experiment Sindt et al. Larson et al. Ham et al. Fanning et al. Vander Pol et al. Vander Pol et al. Buckner et al. Corrigan et al. Luebbe et al. Year 1990 1991 1992 1997 2002 2004 2005 2005 2005 Diet DM % WDGS 0, 5.2, 12.6, 40 0, 5.2, 12.6, 40 0, 40 0, 30 0, 20, 40 0, 10, 20, 30, 40, 50 0, 30 0, 15, 27.5, 40 0, 15, 30 Hd/Tx 40 40 32 20 10 48 50 40 32 Average Daily Gain 5 ADG, lb 4 Predicted Values WDGS Level 3 0 10 20 30 40 50 2 y = -0.0005x2 + 0.0279x + 3.4669 1 0 0 10 20 30 40 50 % WDGS (DM basis) Linear 60 P < 0.01 Quadratic P < 0.01 ADG (lb) 3.47 3.70 3.83 3.87 3.81 3.66 F:G Feed Conversion 8 7 6 5 4 3 2 1 0 Predicted Values WDGS Level 0 10 20 30 40 50 y = 0.0003x2 - 0.0309x + 6.4367 0 10 20 30 40 50 60 % WDGS (DM basis) Linear P < 0.01 Quadratic P = 0.09 F:G 6.44 6.16 5.95 5.81 5.74 5.73 Feeding Value (% of maize) Feeding Value of WDGS 150 140 130 120 110 100 90 80 Predicted Values WDGS Level y = -0.49x + 150.9 0 10 20 30 10 20 30 40 50 40 50 % WDGS (DM basis) 60 FV % Corn 145 142 137 131 126 Studies Used - DDGS Experiment Year Diet DM % DDGS Hd/Tx Benson et al. 2005 0, 15, 25, 35 48 Bremer et al. 2005 0, 30 60 Buckner et al. 2007 0, 10, 20, 30, 40 40 Ham et al. 1994 0, 40 32 May et al. 2007 0, 25 96 Average Daily Gain 5 ADG, lb 4 Predicted Values DDGS Level 3 0 10 20 30 40 2 y = -0.00048x2 + 0.02466x + 3.4325 1 0 0 10 20 30 40 50 % DDGS (DM basis) Linear P < 0.01 Quadratic P < 0.01 Cubic P = 0.54 ADG (lb) 3.43 3.63 3.73 3.74 3.65 F:G Feed Conversion 8 7 6 5 4 3 2 1 0 Predicted Values DDGS Level 0 10 20 30 40 y = 0.000521x2 - 0.0259x + 6.6201 0 10 20 30 40 50 % DDGS (DM basis) Linear P = 0.07 Quadratic P = 0.02 Cubic P = 0.97 F:G 6.62 6.41 6.31 6.31 6.42 Feeding Value (% of maize) Feeding Value of DDGS 160 150 140 130 120 110 100 90 80 Predicted Values DDGS Level 10 20 30 40 y = 0.0575x2 - 4.625x + 193.25 0 10 20 30 40 % DDGS (DM basis) 50 FV % Corn 153 123 107 100 Relationship between US Maize and DDGS prices Source: CARD, Iowa State University Feeding value of wet vs. dry distillers grains (Ham et al., 1995) WDGS Control Daily feed, kg 11.0bc 10.7b Daily gain, kg 1.47b 1.68c Feed/gain 7.69b 6.33c Improvement (vs Control), % Diet -21.5 Distillers vs. Maize -53.8 aLevel DDGS Lowa Mediuma Higha 11.5c 1.66c 6.94d 11.3cd 1.68c 6.76d 11.8d 1.71c 6.90d ………….11.9 (avg.)……….. ………….29.8……………… of ADIN, 9.7, 17.5 and 28.8%. b,c,d Means in same row with different superscripts differ (P<0.05) Wet Byproducts for Cattle Cost of transporting water Superior Feeding Value Dry Byproducts for Cattle Storage Transport over long distance In Summary… • Ethanol industry has major influence on overall global agricultural economy • USA exports of DDGS are rapidly increasing as end users better understand the use of DDGS in their feeding operations • Ethanol production process is not an exact science, there will be variability • Variability can (should) be managed and evaluated • Quality control measures can be implemented to ensure a reliable supply of quality DDGS • Need industry standardized and quick testing of DDGS • Match your needs with DDGS quality In Summary… • DGS low in starch – Reduces potential of acidosis • Highly digestible fibre (40-45% NDF) and yeast cells (3-5%) – Stimulate rumen fibre digestion – Compliment high starch maize diets • When fed at limited levels (<40%) – Energy content 120-130% of maize • Reasonable source of undegradable protein (UDP) source – UDP quality and bioavailability could be a problem • Feedlot cattle find DDGS very palatable Thank You