World Grain - October 2011 - 72

BIOFUELS QUARTERLY

Biofuels News Review
Global biofuels growth continues despite obstacles
HOUSTON, TEXAS, U.S. — Brazil will return to dominating the global ethanol market, but sharp growth in internal demand and challenges in adding new production in the country will mean less export supply availability through 2020, according to the annual Global Biofuels Outlook, 2011-2020: Projecting Market Demand by Country, Region and Globally released on Sept. 12 by Hart Energy. The analysis captures the biofuels supply and demand picture in North America, Latin America, Europe and Asia Paciﬁc. The global analysis also looks at biofuels developments in Africa and the Commonwealth of Independent States. Frederick L. Potter, executive vice-president of Hart Energy said either: • The price of Brazilian ethanol needs to increase further than that now projected to provide adequate market incentives for additional cane acreage and ethanol production, or • Governments such as the U.S., California, E.U. and others will need to modify public policy targets that will rely so heavily on sugarcane ethanol and other advanced bio-ethanol supplies. Hart Energy’s analysis concludes that the U.S. Congress will ultimately have to modify the total RFS2 requirement by 2022 and modestly increase the longer-term requirements for corn-based ethanol under the program to compensate for the shortfall in commercial cellulosic biofuels volumes. The study also found that ethanol will represent 12% of the gasoline pool and biodiesel and renewable diesel will represent 4% of the on-road diesel pool by 2020 for the countries included in the study.

USGC promotes DDGS use to Colombian livestock industry
WASHINGTON, D.C., U.S. — In August, the U.S. Grains Council (USGC) conducted a series of workshops in Colombia to promote U.S. distiller’s dried grains with solubles (DDGS) use to the poultry and swine sectors in the country. In four days, the USGC delegation visited four different cities to meet with importers, feed millers and livestock producers to promote the potential benefits of using DDGS. Participants included Dr. Phillip Smith, a poultry nutritionist with Tyson Food Inc., Gregorio Lanz, a swine nutritionist with Gowans Feed Consulting and Jose Artigas, director of business development for Poet Nutrition. Colombia is the largest co-products market in South America, im72

porting 140,000 tonnes in 2010 (74,000 tonnes of DDGS and 68,500 tonnes of corn gluten). But according to USGC Regional Director in Latin America, Kurt Shultz, the market potential for DDGS could be as high as 750,000 tonnes. “Several key developments must occur in order to reach this potential,” said Shultz. “First, approval and implementation of the U.S.-Colombia Free Trade Agreement will remove 10% duty on U.S. DDGS. Secondly, the availability of DDGS in the Colombian market must be increased, which will require more USGC member involvement in exporting to Colombia. Finally, the council must work diligently to make Colombian nutritionists comfortable in using DDGS at high-inclusion rates.”
October 2011 / World Grain / www.World-Grain.com

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World Grain - October 2011

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