Ethanol blending policies and the South African animal feed industry

Abstract

ABSTRACT Ethanol production in South Africa is on the brink of becoming a reality. Government policy is currently one of the major constraints. In 2006, a proposed industry strategy was drafted. One of the main topics in this draft is the proposed blending percentages, namely, 8 per cent for bio-diesel and 10 per cent for ethanol. This would affect the South African animal feed industry, because Dried Distillers Grain with Solubles (DDGS) is a by-product of ethanol production from maize. The effects can be seen by applying the Agricultural Products Requirement (APR) minimum feed cost formulation model. According to the APR model, the total cost of animal feeds would decline at various blending percentages. Consumption of protein-rich raw materials declined most markedly at a 10 per cent blending of ethanol. These raw materials are mostly oil cake, which is currently imported from various countries. Some animals used more DDGS than others in their diets. According to this study, broilers used the most DDGS.